Can My Company Refuse to Pay My Notice Period? Seeking Advice on Next Steps

Hi, I am working in a Ltd. Logistic Company. I have resigned and served a 2-month notice period as per my company policy. However, my HOD and HR Head are not accepting my notice period and have relieved me immediately without paying me the notice period amount. They are saying that since I resigned and they relieved me immediately, there is no need for notice or payment.

Can the Company Do This?

Now my question is, can the company do such things if it is not mentioned anywhere in the policy?

Steps to Take in This Situation

Secondly, what steps should I take in this situation?

Regards, Preeti

Since you have served the notice period as per the terms of employment, you are eligible for salary, PF, and other benefits. If they are denying that, you can meet or write to the topmost person, i.e., MD or CEO, asking for the reasons for not paying. As per law, they cannot withhold your statutory benefits like PF and Gratuity, for which you can lodge a complaint with the PF Office and Labour Court, respectively.

If your terms of employment mention that you have to serve a notice period on resignation and this has been accepted by you and your company, then it is binding on both of you. If they want to relieve you immediately, then they should do so with all the payments and issue a Relieving Letter.

The last option for you is to move to the Labour Court and appoint a lawyer.

Regards, Sumeet

There is no reason why they are stopping your payment. When you resigned, did they accept your resignation? How come they relieved you after two months of your notice period? It means they had accepted your resignation. Also, if they have relieved you, they must have given you the relieving letter and also must be giving you the full and final settlement. In no way can they keep your EPF (so don't worry about that). If the company is not signing your PF form, you can get it stamped by the bank manager, a gazetted officer, etc. I would suggest that you request payment from them, and if not, then talk to a lawyer and send them a notice. Trust me, they will come to your place to give you your salary. Was it a very small company???

Understanding Your Notice Period Policy

If you have a two-month notice period, your company will have a policy document that states this. Locate this document, which should be part of your company's intranet portal, and politely confront your manager. Unless it was a case of termination where you were asked to resign, I see no reason they should immediately relieve you.

Unless, of course, your relieving policy document states that your notice period is "UP TO TWO MONTHS," then they can relieve you anytime between the time of your resignation and your last working date (2 months + your resignation date).

Regards

You will need to refer to your company's notice period policy document. This document will have a clause on the full and final settlement.

To resign, send your resignation to the manager by registered post with acknowledgment due for proof. Then, consider sending a legal notice to them to see what unfolds.

Regards,
Ral