Left Job Without Notice: Will My Former Employer Really Take Legal Action?

I recently departed from my previous employer, CSC, without fulfilling the stipulated notice period of two months due to pressing personal matters. They have now issued me a letter demanding I pay approximately one lakh as a penalty for Short Notice Recovery. Furthermore, they have warned of legal action if I fail to pay. I'm uncertain about how to proceed. Does anyone know if companies genuinely pursue legal action in such cases, or is this merely a scare tactic?

Thank you.

Employment Details and Notice Period Concerns

1. Joining date: July 2011. Left in September 2011.

2. The appointment letter mentions a notice period of two months but does not mention anything about legal action or short notice recovery.

3. No, I did not sign any bond. I only signed the offer letter, which states that there will be no relieving letter and the settlement of dues will be at the sole discretion of management.

Sikydv, don't do such things. You don't have any bond rule in your company. The same thing happened to me due to a good offer, but my full and final settlement stopped due to leaving the service without a notice period. So, don't accept any full and final settlement and don't transfer the PF amount from the previous company to the present company. They are just manipulating; don't believe such people.

Regards,
Sudhir Kumar

As per the above discussion, no company has the right to stop F&F legally. If you have mentioned to your reporting boss in the previous organization (in writing), then it's valuable proof. According to the appointment letter of any company, it states that if a person does not give the notice period, it will be adjusted from the basic salary. If there is a bond, you need to adjust accordingly. If there is no bond, then the company cannot claim roughly Rs. 1 Lakh as recovery. Additionally, the company will not have supporting documents to prove this. On the other hand, you can ask the company for justification of the recovery of Rs. 1 Lakh (especially under the law). If not, then chill out.

You can claim for F&F and PF withdrawal. As per the PF law, none of the companies have the right to stop or permit withdrawal under any circumstances (leaving without notice or others). There can be disciplinary action against the company or the authorized person.

Thank you.

Employment as a Contract

Employment is a sort of contract. The agreed terms have to be fulfilled by either party. If there is a breach, legal action is possible. Some members said it is not possible, but their versions are wrong.

Regards,
Pon

The stipulation in the exit clause in your appointment letter will prevail in these circumstances. You were required to give the Company two months' notice before leaving the organization. However, you just went away without providing this stipulated notice.

Under the circumstances, you are obliged to pay the Company a sum equivalent to the shortfall in the two months' notice period. Please calculate the amount and submit payment by cheque. Ensure to obtain a receipt and confirmation from the Company that the money towards the notice period has been received and obtain your clearance certificate from them.

The Company would be within its rights to take appropriate legal action against you for the recovery of dues. For any further advice, please feel free to call me on my mobile at [Phone Number Removed For Privacy Reasons].

Best Wishes,
Vasant Nair

Don't believe Pon. You can always say that you had given a written one-month notice period and hand-delivered it to the concerned person. Also, say that you were given a full and final settlement form that you filled and submitted back. Do you know how many employees were thrown out by companies during the 2008 recession without any notice period or the notice period amount? Why should you be afraid?

Rather, I would suggest you ask them to provide this communication in writing. Once they send it to you, take legal action against them by claiming harassment charges. It really helps; I have done so.

From your email, I understand you have quit an IT firm. I have a few observations. Either today or in the coming days, if you receive any other offer and the prospective HR conducts an employment verification, a negative remark might cause problems for you.

Looking at the onsite opportunities, if you require any continuous employment proofs from your ex-employers and need the help of CSC, you could face issues.

I suggest you talk to the HR at CSC and settle the matter amicably to obtain a proper relieving letter, which will help avoid any problems in the future.

Regards,
Kumar

If the terms of appointment specify a notice period, then you are obligated to adhere to it. Please check whether the notice period condition is applicable after your confirmation. What is your current status? Are you on probation or confirmed? The notice period condition applies accordingly, and the payment should be made accordingly.

Regards,
S.G. Krishnan

Every company clearly mentions its rules in the appointment letter, and the appointed person is obligated to follow these rules as they have signed the document. Some companies include hidden points in the appointment letter, so it's important to review your appointment letter for any such points. Otherwise, there is no basis for taking action against you.

With regards,
Kavita Kapoor

I think the answer is somewhere in the middle, but I'm more inclined to what Clifford says.

Contractual Obligations and Compensation

In the contractual sense, if there is a contract and one party breaks it, then the other/innocent party is technically liable to receive compensation. However, the key question is: has the company suffered any damage that can be calculated in monetary terms? If so, what action has the company taken—if any—to minimize the monetary damage they say they have suffered? For example, were there people who covered the work you would have done, and were these people paid any more money for doing so?

If the company took any court action, then any court would want to know what any monetary loss was and what actions the company took to minimize them. I suspect the main problem here is that the company feels let down because you didn't give the contractual notice period and want some kind of revenge.

Understanding Employment Terms and Legal Recourse

If you signed and accepted the terms and conditions of the appointment order, you have to accept it. At the same time, the terms and conditions should not violate any legal provisions. If they do, you can challenge them before a court of law.

You can send a notice to your employer asking how they can demand one lakh rupees and if it is acceptable for them if you are willing to pay for the notice period. Nowadays, many companies are not following healthy exit procedures. 

At the same time, one should not trouble their previous company by not working the notice period. You may have valid reasons for it. Try to solve the issue amicably or else seek legal opinion and proceed further.

First, go and meet your previous employer to discuss the issue.

Regards,
Nagarjuna Kandimalla
[Phone Number Removed For Privacy Reasons]

In my opinion, if the exit process was not followed in accordance with the company rules and the terms mentioned in the appointment letter, then the company, as per its policies, can pursue legal action. Also, remember that the company can go to any extreme to recover its losses.

On the contrary, it is also true that you can justify your stance for leaving the job without notice. If the company, as per its policies and under legal grounds, can take appropriate decisions, you are therefore requested to approach your lawyer to resolve your problems and clear yourself.

Thanks and regards,
Bijay

Don't worry, all they can do is not provide you with the relieving letter and F&F compensation. You can still have your PF transferred or withdraw it. Bonded labor is not allowed in India, so no issues...

I am working in a PSU since 1993. During induction, it was explained to us that in India, as per a Supreme Court judgment, a bond is illegal concerning employment as it is one-sided. Most probably, abolition of bonded labor and Article 19 or something like that. I don't remember exactly. Also, Article 368 of the IPC is applicable if your company holds your documents/letter or threatens any legal suit. Any complaint against the company invites exemplary penalties on directors/owners. They assured us fair treatment and no obstruction to those wanting to leave.

Notice Period and Employment Bonds

Regarding the notice period, it is a balanced contract, and you must serve or pay for the notice period.

A bond for serving a minimum period due to training imparted/personality development is enforceable if your training is provided by a third party or you are sent to a personal grooming school, management school at the company's expense. On-the-job training and training in the company's training center cannot be an excuse for this type of bond.

Legal Rights and Practical Challenges

All these are your legal rights, but in practice, because employees are weaker than employers, we adjust and compromise. For example, your background verification can be tampered with or your previous boss may change jobs and join as your current boss. You can only make an informed decision.

Regards,
Prem

Understanding Employment Contracts and Penalties

Sikdv. Pon is correct up to the first statement. An appointment is a sort of contract, but if it is mentioned that it is to cover early leaving losses, then they can take any action. Otherwise, they will not pay you notice period wages. Also, they can't claim on your gratuity.

First of all, let me tell you that they can file a case against you. But since you haven't signed any bond or there is no mention of a short notice period, their notice or claim for 1 lakh is totally baseless. So you don't have to fear as the ball is in their court. In my opinion, they are only trying to threaten you and won't take any serious legal action because they don't have a strong case.

Hi sikydv,

I am also in a similar situation as you. I joined CSC in 2010 but left within 15 days of joining as I was not satisfied with the job profile. I didn't serve the 2-month notice period as mentioned in the offer letter, nor did I pay the notice period amount since I didn't need the experience certification. Now CSC has sent me a letter to pay around 30k in lieu of the 2-month notice period or else face legal action. Could you please let me know how you solved your issue? Your help will be much appreciated. Comments from others are also welcome.

Regards.

I joined an XYZ IT company in 2010. They asked me to sign a bond for one year, stating that if I left the job before one year, I would have to pay them one lakh rupees. The company justified this by saying they were going to invest in my training, so they needed a guarantee. When I joined the company, no training was provided, and I was directly deployed on a project. I was a novice to that new technology, so I couldn't handle the pressure and resigned within 10 days of my joining.

Now, the company is sending me notices from a lawyer and asking for money close to 1.5 lakhs (Bond money + taxes). Please let me know if the company can recover that amount from me or if I am liable to pay them.

Regards.

Service Agreement Details

Dear ___________,

As we look forward to your undergoing training, we also think it is important for you to understand the commitment the Company is making to train you, which involves a considerable investment by xxx company.

While we are happy to make that investment, we expect in return that our employees will use the training to benefit the Company. Consequently, as a condition of your training, we have proposed the following:

“Should you voluntarily leave the employment of xxx for any reason within 12 months from when your training is completed, you must reimburse the Company a sum of rupees 1,00,000 as liquidated damages.”

The attached document describes in legal language the above agreement.

If the proposal is acceptable to you, please sign the Letter of Consent.

Sincerely,

Name:

Designation:

Letter of Consent

I hereby opt to undergo training provided by xxx Pvt Ltd. I acknowledge the fact that the Company will be spending a considerable sum of money on my training. I fully understand the liquidated damages clause of the attached agreement and undertake not to dispute the correctness of the amount payable by me. I am executing the agreement of my own free will and volition.

Signature: ____________ Date: ____________________

Name of the Employee: ___________

Guarantee

This Agreement, (hereinafter referred to as “Guarantee”) entered into this day of 20

A. xxx India Private Limited, a company duly registered under the provisions of the Companies Act, 1956, having its office at Noida and together with all other entities ultimately owned by xxx authorized representative and Mr./Ms._______________________________________________ _____residing at _____________________________________.

AND

B. Mr./Ms.________________________ S/O, D/O______________________________ R/O_________________________________________________ ________________

(Hereinafter referred to as, “Guarantor”) who is ____________ (relationship with employee) of the

C. WHEREAS, _________________ (hereinafter referred to as “Employee”) has opted to undergo training for a period of __________________ which would deem to have begun from _____________ and Employee out of his/her own free will and volition executes this agreement.

Guarantor's Signature_________________

Guarantor's Photograph

Attested By Notary

I joined CSC but left it after 3 days from joining due to some unavoidable reasons. I sent a formal email to my reporting HR explaining the issue and the reason why I would not be able to continue, a week after joining. I also informed them to consider that as a formal communication from my side regarding my resignation.

Meanwhile, during this communication between me and HR, I received a letter from CSC stating that I cannot leave like this and that I will have to serve the notice period of 2 months. They also mentioned at the end that they will take legal action if I do not comply. Now, my question is, on what grounds can they take legal action? Why am I saying this is because:

1. First, we are in the probation period, and if I am not serving the probation period, then how is someone obligated to serve the notice period?

2. In our offer letter, as you must be aware, it is clearly mentioned that, "In case you leave your employment without giving requisite notice, no relieving letter will be issued, and settlement of dues will be at the sole discretion of the Management." So, for 2-3 days, no service letter is required.

I read your post, and your case is similar to mine. Could you please tell me what happened in your case? I mean, you have mentioned that you left within 15 days and after that, you were told to pay 30k? Inputs from other members are also welcome.

Thanks,

Vikas

Notice Period and Legal Action Concerns

I have a similar problem. I joined an IT company but left the job within 4 days of joining due to some personal issues. I submitted my resignation to my manager and the company HR, stating that I needed to leave for my hometown because of personal problems. After 3 months, they sent the full and final settlement, asking me to pay 1.5 lakhs for not serving a 3-month notice period.

My offer letter states that I would be on probation for the first 6 months but did not mention any notice period during probation. However, it also mentions that I have to serve a notice period of 3 months.

I am unsure if the company can demand 3 months' salary in lieu of the notice period during the probation period since I was on probation for the first 6 months. I have read that during probation, the notice period should be less than 1 month.

Please advise on what steps I should take in this situation. The company has sent a letter stating that if I do not pay the amount, they will take legal action against me.

Thanks,

Rakesh

I worked as a sales manager in the automobile industry in Delhi NCR. I resigned from the job without serving any notice period and joined a competitor within a week. In my appointment letter, it is mentioned that I need to serve a 90-day notice period, and if I don't, then I have to pay 30% of my annual remuneration. Can my employer take legal action against me?

I joined an organization on 26th February 2015 and discontinued my service on 20th July 2015. Due to the rotational nature of my shift, I had to leave to pursue further education. I was unable to serve the 15-day notice period required. Consequently, the organization processed my full and final settlement but demanded compensation for the incomplete notice period. They have also engaged a law firm in Bangalore to communicate with me. I am uncertain about what steps to take as I never signed any bond or contract beyond the initial appointment letter.

I reached out to the central HR department to seek clarification on the outstanding amount.

Query: Legal Proceedings for Incomplete Notice Period

Therefore, my query is: can a company initiate legal proceedings for not completing the notice period? What course of action should I pursue?

Regards

Hi Sikydv,

I am now facing the exact same problem with CSC (now DXC). I resigned within 2 days of joining, and now they are demanding notice period recovery. Can you please, please, please let me know what happened with your issue with CSC? :(

Hi All,

Santhiya here. I was terminated from DXC Technology, also known as CSC Corporation, due to some personal reasons. I joined in May and left in June. Now, I have received an email and letter from DXC Technology requesting a recovery amount of INR 100,000. If I fail to pay this amount, they have threatened legal action against me as stated in the mail.

Could someone please provide me with accurate information? Do they genuinely intend to pursue legal action, or is this just a threat?

Thank you.

Not only DXC, but any company, for that matter, will proceed with disciplinary action and close the file if you abscond without information. However, the action depends on your nature of employment with the organization, such as training period, regular employment, or signed indemnity bond.

Wherever monetary loss occurs to the employer due to the exit, they will try to recover the same through the legal system or by holding the full and final settlement, as the case may be.

In general, leaving an organization without any information is not advisable.

Hi,
I had informed the HR and project team before leaving the organisation that i will not be able to continue due to health issues and hence could not serve the notice period. They had asked me to report to office but I replied that i could not travel as per doctor's advice and then ignored replying to further mails from them. Am i still liable to pay the compensation.
Thanks in advance