Resignation via Email: Is It Legally Binding and Can We Delay the Relieving Process?

Dear All,

As per the appointment letter, the exit clause states that the party (who broke the contract) has to provide either a 1-month notice or pay 1 month's salary in lieu. The executive worked for only 8 days of the month and then submitted their resignation letter via email the following day. Is this valid? Is a resignation letter sent via email equivalent to a physical resignation letter? Can we take action against the executive or delay their relieving? Please advise.

Dear White Eagle,

You can deduct those 8 days of salary against the notice period not served. You can issue the relieving/experience letter with the sentence of good conduct and character removed. And anyways, if he is going to join a really good company, they would ask for employee verification. Here, you can post your comments that can either make or break his career. However, all this will help build or break your brand image in the job market. So, be cautious before you act on the same.

Regards,
Sathya

Hi White,

Kindly find my feedback:

1. Was the executive new to the organization and has worked for 8 days.
A. If yes, then he is on probation period, so there is no notice period.
2. The second question was resignation acceptance through mail.
This depends on the company. Normally, most companies accept email.
3. If the employee has completed the probation period and has worked only 8 days during the notice period, in that circumstance, you can deduct the 22 days' salary from the employee's account and release the final settlement.

Regards,
Saji

Thank you for your response.

The employee was a long-time member of the organization with approximately 2 years of experience and a 1-month notice period. He was a valuable resource, and during the recent appraisal, we had given him a nominal salary increase.

He contacted us to express that he would settle any outstanding dues but was unwilling to serve the notice period, come to the office, or hand over his job responsibilities. We are considering taking action against him as failing to adhere to the notice period could set a negative precedent within the organization.

Please provide your guidance on how we should proceed.

Hi White,

I would suggest not to release his final settlement and give notice to the employee asking him to properly hand over the documents to the concerned department head within a specified time.

Failing to do so will have legal implications and action may be taken against the employee. For that, you need to check with the legal department.

Saji

Hi,

No problem exists in sending a resignation letter via email, unless it's sent to the right person. The employee must pay the notice period amount, as that's how it's mentioned in your appointment letter. He must abide by it.

Hi Saji,

Please check whether this is correct:

1. Gratuity Act 1971: As per the act, an employee should have worked in the same organization for 5 years.
Calculation: Basic + DA * 15/26
3.5 Lakhs from a single or multiple employer, this has been revised by the 6th pay commission to 10 lakhs.
15 days' salary for each year of service by the Employer

2. Employees Provident Fund Act 1952 covers three schemes: EPF, Family Pension Scheme, Employees Deposit Linked Insurance Scheme.
Requirement: Minimum of 20 employees and employees drawing 6500 are covered under the PF Act.
Contribution: 12% from Employee and Employer + 1.61 administrative charges paid by the employer.
8.33% goes to the pension fund and 1.67% goes to PF.

3. Employee State Insurance Act 1948:
Contribution: 1.75% from the employee's side & 4.75% from the employer's side.
Minimum Rs. 50 per day.

Kindly clarify some doubts:
1. Suppose an employee resigns and joins another organization, in that condition, they lose the eligibility for gratuity coverage.
2. What is the minimum salary and the number of employees required to be covered under the PF Act?
3. What is the minimum salary required per day to be covered under the ESI Act?

Appreciate your feedback.

Regards,
Saji