Can My Employer Deny My Right to Buy Out My Notice Period After Resignation?

Hello,

I'm working with a MNC. The offer letter says that the Company can give me 2 months' notice in writing or pay 2 months' basic in lieu of notice. I can also give 2 months' notice in writing or pay 2 months' basic in lieu of notice.

However, I'm not getting a chance to exercise this option after my resignation. I have also completed all the handover procedures.

The HR manager verbally says that even though it is not written, it is only after the interest of the employer is served, i.e., the technical manager clears everything. Is this right? Does the labor law work like that?

Hoping for your help.

- Guru

Dear Guru,

Every employer looks forward to a longer association with its employees. At the same time, we understand that no one is married to the company because we work for ourselves.

The clause on notice period or pay in terms and conditions of employment is to ensure that whoever leaves the services of the company gives proper notice to his present employer, hands over everything to his successor, and clears all his dues.

It's a fact that any HR person can only help you once he receives the following from the reporting manager:
1. Acceptance of resignation
2. No dues
3. Confirmation email on handover
4. Confirmation email from the successor on taking charge

If all of the above is done, I believe there would be no problem in getting proper relieving from the employer. I always believe that it's the joint responsibility of the employee and employer when it comes to a smooth exit and relieving from your present employer.

Regards,
Anup

Hi Anup,

I understood this perfectly. However, if the immediate manager is not ready to relieve me and is asking me to start "new" work, can I use the clause mentioned in the offer letter as my right?

Hoping for some more information from you.

Regards,
Guru

Dear Guru,

Your question does not relate to labor law. An offer letter, once accepted, becomes a contract between you and your employer. If it states that by paying a two-month notice period you can leave, you can indeed do so without it being illegal. What your employer is doing is unlawful.

Therefore, inform your new employer about the situation and request to join based on your resignation letter. They should understand and permit you to do so. Subsequently, notify your current employer of your departure and suggest they deduct the notice period from your dues or pay it in full so you can join your new employer.

Anup's advice is correct. However, your current employer should have specified in the offer letter that you must serve the full two months, which they failed to do. Move forward with your decision.

KKT

Hi,

It is completely unethical to assign new work to a resigned employee. Instead, it should have been assigned to your successor, and you could have been requested to ensure that they are performing well. Ultimately, it will be your decision whether to work until your notice period finishes or to pay, but keep in mind that the situation may be similar wherever you go when it comes to leaving a job.

I strongly believe that the smoothness of your exit will depend on your relationships and communication with your reporting manager. So, best of luck.

Anup