1. Can a Telecom company refuse to relieve an employee under the clause of discretion to let go an employee just because they has coerced an employee to sign the appointment letter bearing this term at the time of joining and thereby take away any opportunity of employment with any other organisation.
2. Can a Telecom company refuse to encash earned leaves after resignation while calculating full and final settlement.
3. Can a Telecom company refuse to grant medical leave, post-resignation by threatening to increase the notice duration by equivalent number of days.


No company in any industry can have clauses against any law in force in employment contracts. In Sandhya Organic Chemicals P Ltd Vs United Phosphorus Ltd, it was held that a covenant extended beyond termination of employment is void. This is violation of section 27 of the Contract Act.

No company can refuse to encash the unearned leaves at the time of discharge or leaving due to any reason.

Notice period is one of the service conditions of employment. That cannot be changed at the interest of an employer alone. Therefore, the question of increasing the notice period does not arise at all when an employee puts his paper. Therefore, threatening is out side the purview of discussion also. Therefore, refusal of an allowance which is again a service condition is just illegal.

From India, Kannur

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