Can My Former Company Legally Force Me to Serve a Full Notice Period Despite No Project Assignment?

Hi, I joined an MNC approximately 2.5 months ago at a particular location. The company did not assign me any project at that location and told me to transfer to another location with which I was not comfortable. Before moving to the other location, I received another offer from a different company and resigned from my current company.

Notice Period Clause

As per the appointment letter, "Employment with the company can be terminated by 90 days' notice in writing from either side or 90 days' pay in lieu of notice, as may be determined by the company."

My manager accepted my resignation, but the HR department was forcing me to serve a 3-month notice period and was not offering a notice period buyout option. I decided to join the other company after serving a 10-day notice. I had discussions several times with HR for an early release as I was not on any assignment and would not be of any use to the previous company, but they were adamant about me serving the full 3-month notice.

Legal Concerns

What legal action can my previous company take in this case? Can the company force me to serve the notice period instead of accepting a notice payout?

Please suggest.

The terms of appointment leave the discretion to the company whether to accept wages in lieu of notice. Since the company is not willing to exercise the option of buy-out, you need to give three months' notice (90 days).

Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai

Thank you for the reply! I have not served a 3-month notice period. What is the maximum action the company can take against me? If the company decides to pursue legal action, will I have to pay based on my basic salary plus DA or on my gross salary?

You need to pay whatever you are receiving as gross salary. Since the discretion to accept notice pay is with the company, try to negotiate with them.

Regards,
B. Saikumar
Mumbai