Navigating Resignation Acceptance: How to Handle Extended Notice Periods and Delayed Relieving Letters

Hi all,

Hope you are all doing great. I wanted to inquire about any laws pertaining to Resignation Acceptance by Employers. For example, when an employee resigns from a company, the employer acknowledges the resignation email. This process usually takes 5 to 7 days due to negotiations. However, what if the employer sends the acknowledgment before the employee's notice period ends? Moreover, what if the employer attaches a handover list that extends beyond the actual notice period of 2 months, adding an additional 3 days, making it a total of 10 days?

At my workplace, there is a senior management member who is quite rigid on this matter. He often extends the 2-month notice period, citing incomplete work as the reason.

As an HR professional, I have witnessed this scenario happening to 5 former employees, some of whom did not receive their relieving letters, salary, or even their PF dues due to this delay.

I would appreciate your advice on the best approach to address this issue.

Thanks and regards.

The Industrial Employment (Standing Orders) Act 1946 deals with the resignations of workmen. These principles have been practiced even for the management cadre staff. Once the employee submits the resignation, the management is supposed to communicate the acceptance of resignation and the last date of working. If the employer does not communicate the acceptance of resignation, the employee can very well discontinue the employment.

The Constitution of India provides one of the basic fundamental rights to choose the profession of the individual's choice, and no employer can go against it. The normal stance taken by the employer that the employee must complete certain work before leaving the organization is only a matter of smooth separation, but there is no specific law mandating it. Employees typically ensure they receive a relieving letter, which needs to be submitted to the next employer without raising any concerns.

Acceptance and Full and Final Settlement

In the true sense, acceptance is required, and thereafter, a proper full and final settlement is necessary to complete the process. We must be aware that the law is common sense, and common law always prevails. Suppose an employee leaves without acceptance and a relieving letter... what happens? Let a hardcore HR professional answer this question. Is accepting an employee who does not carry a relieving or experience letter acceptable?

Employer's Obligation to Respond to Resignation

After receiving a resignation letter from an employee, the employer is obliged to respond to it, whether accepting or refusing, but it should be with a strong reason. If the employee is on a certain project that requires their special attention and must be finished by them, the employer must have a mutual agreement with the employee. If it happens that the notice period isn't enough to finish the work, then the company will pay the employee for the extra working days.

Notice Period and Employee Performance

To avoid unnecessary complications, many companies do not allow employees to work during their notice period; instead, they pay them in lieu of the notice period they were supposed to work. This is because many employees tend not to perform well during that time, and most of them pretend to get sick during the notice period. They may come up with many excuses for not being at the workplace because they are just buying time to leave. Their interests are highly prioritized during the notice period.

Hence, if you are going to hold the employee after the notice period has finished, then you should prepare to pay them because that will be a new contract.