Dear cs_jai,
Generally, the notice period mentioned in the appointment letter is equal and applicable to both parties; which in your case is presumably 60 days or 2 months.
An employee in your position, who would get selected for another job in a different company, when asked how early he can join, would consider the notice period and seek at least two months' time to join.
When the same employee tenders resignation, he stipulates that as per the agreement on the notice period, he would like to be relieved after two months.
Now, at this point in time, considering all the arguments put forward by our members, the company is at liberty to relieve the employee at any time before the expiry of the period indicated by the employee.
However, since this is an action that is actually initiated by the company, as per its own convenience, the same policy of the notice period applies to the company too.
Thus, the company is liable to pay compensation for the notice period (in this case, two months) less the time it allows the employee to work.
What it means is, if after submitting your resignation letter, the company relieves you the next day, then they are liable to compensate you for two months' salary in lieu of notice. If they allow you to work for a week, then they should compensate you for seven weeks' salary.
What happens in reality is the management assumes the following:
- His services can be dispensed with anytime since he has already resigned, apart from the other reasons mentioned in other posts.
This state of affairs continues, as generally HRs are too powerless or docile to adhere to the principles of natural justice (with due apologies to all) and at times are ignorant of the finer points of law, equity, and justice.
I do not know if you would be able to fight your case in a civil court, as you may not have the protection available to a "workman" under the labor laws; however, I wish you to know and have the satisfaction that what you have asserted is correct.
Warm regards.