Notice Period Dilemma: Is It Legal to Withhold Final Pay Without Confirmation?

As per our company policy, after confirmation, the employee must serve a one-month notice period in order to resign. However, in our company, nobody has yet received the confirmation letter, even after being in service for 2-3 years. I would like to know, if an employee resigns without serving the notice period, is it right to stop his full and final settlement. Is it legal or illegal?

Kindly give your feedback.

Hi,

My view is: have you mentioned the clause specifically in the appointment letter that the employee will stand confirmed only if a confirmation letter is provided? If this clause is not there, then employees are confirmed after their confirmation tenure is over. If this clause is there, then in my view, you can only talk to them to come to an amicable solution but legally you can't enforce them to stay.

Dear,

How does it become a company policy if nobody has received their confirmation letters? Please be clearer on the issue. If the terms of appointment state that an employee, after confirmation, needs to serve one month's notice before leaving, then the employee has no other option. However, the key question is whether the employee is actually receiving the confirmation or not. If he/she doesn't receive the confirmation, then that particular clause regarding the notice period (if stated in the appointment letter) becomes null and void. Therefore, what truly matters is the clause stated in your appointment letter. Please review your appointment letter carefully and reach out if you need any assistance.

Regards

As per a Supreme Court ruling, an employee cannot remain on probation forever. After a considerable time on the job, even if no written communication is served to confirm his job, the employee will be deemed as confirmed.

However, withholding settlement on account of not serving the notice period is not going to be in your favor. The way out here could be to ask them to get a 'Clearance Certificate' from all the departments so that their Full and Final settlement can be processed.

Prashant