Resignation / Notice Period

If company is not in a position to pay the salary to it's employees for consecutive three months and a employee XYZ has decided to leave the company for better future should he give notice to 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 ?

It is strongly advisable to have resignation in writing though the company is not in position pay the salary. Employee could initiate appropriate proceedings for recovery of salary.

I agree. For legal implications as well for personal reasons this is the best and only option. Employee is already not paid for his services for 3 months in a row what more can he loose 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 HR Director of the company, opt to back date it.

Verbal resignation has no validity. It must be submitted in writing and also a copy of the same MUST be got acknowledged in receipt.
In the present circumstances the employee could request the management to adjust salary in lieu of notice against the unpaid salary of the previous three months.
All this also must be put down in writing in the resignation letter.
Best Wishes,
Vasant Nair
Director
Karma-HR
09717726667
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