Leaving a Job Due to Unpaid Salaries: Do You Need to Give Notice? Let's Discuss Legal Rights and Obligations

Employee Notice and Legal Implications

If a company is not in a position to pay the salary to its employees for three consecutive months and an employee, XYZ, has decided to leave the company for a better future, should he give notice to the company? If he/she has not given the notice in writing but conveyed the same verbally, what action should be taken against the company or employee? Is there any labor law?

In this situation, it is essential to consider the legal implications and rights of both the employer and the employee. If the company is unable to pay salaries for an extended period, it may be a violation of labor laws, and the employee may have grounds to take legal action or seek advice from the labor department.

On the other hand, if the employee has verbally communicated their intention to leave but has not provided written notice as per company policy, the company may still be required to comply with labor regulations regarding notice periods and final settlements.

It is advisable for both parties to seek legal counsel or consult the relevant labor laws to ensure their rights are protected and that the situation is handled appropriately and in compliance with the law.

It is strongly advisable to have a resignation in writing even if the company is not in a position to pay the salary. An employee could initiate appropriate proceedings for the recovery of salary.

I agree. For legal implications as well as for personal reasons, this is the best and only option. The employee has already not been paid for his services for three months in a row; what more can he lose from the same company? Just do the proper thing as per the employment contract and provide the required notice period. One could also, after discussing with the HR Director of the company, opt to backdate it.

Validity of Verbal Resignation

Verbal resignation has no validity. It must be submitted in writing, and a copy of the same MUST be acknowledged upon receipt.

In the present circumstances, the employee could request the management to adjust the salary in lieu of notice against the unpaid salary of the previous three months. All this must also be documented in writing in the resignation letter.

Best Wishes,

Regards