How Can I Handle My Company Refusing to Honor My Resignation Notice Period?

Dear All, I have been working at an IT company for the past 14 months. I have submitted my resignation letter and given a 20-day notice, but the company is not willing to release me and is insisting that I serve a 90-day notice period. I have requested to be released as my current assignment has ended, and I am also prepared to pay the equivalent of 70 days (90-20 days) as per the clause mentioned in the offer letter:

Notice Period & Termination:
Your employment can be terminated by either party by providing 90 days' notice or 90 days' salary in lieu of the notice period.

Please advise me on what steps to take.

Thanks,
UKM

Dear Mr. UKM,

Your query is not yet complete. You haven't mentioned a few details that connect the entire scenario:

- What is your designation? (If executive, there shouldn't be much issue in relieving you)
- Has anybody taken charge of your remaining work as your assignment nears completion?
- When did you give your notice period?
- If you are serving notice, which implies the employer has accepted your resignation (any proof of evidence/mail/letter of acceptance)?
- When you are 90 days into the notice period, you're halfway through it. What is the exact reason for leaving?
- What explanation have you provided to the employer for your separation, and how have they responded by raising the "Notice Pay"?

Please comprehend the above as it is essential for the seniors in this forum to fully understand the situation and provide the best possible solution.

Thanks!

Notice Period Clause which is self-explanatory (provided by you above), but let me define this again first.

It states that you have to compensate for 90 days of salary in case of a breach of the employment agreement from your side, or else you have to serve a 90-day notice period if you intend to leave (resignation).

"Either you have to compensate for 90 days or serve a 90-day period."

However, as you mentioned that you have submitted your resignation with a 20-day notice period, which is not according to the respective employment terms and conditions, it can't be applicable in this regard. Therefore, your resignation is not accepted by them, and they are not allowing you to leave.

Secondly, you can't just demand to leave due to the completion of your assignment, no matter if you are ready to compensate as per the notice period or not. It is the responsibility of the employer to assign you another task if you have completed or are about to complete your current work. Consider if they asked you to leave, stating a reason that they have no further work for you, and they are ready to give you a month's notice period with salary. Would you accept it?

Lastly, I second Sharmila ji's request for you to furnish more details and suggest you speak to your boss/seniors/HR people by giving them a valid and appropriate reason for your resignation. But if they still won't allow you, you have to adhere to the terms applied to your employment and complete this 90-day notice period.

Resignation and Notice Period Clarification

In your case, it depends on the wording of your resignation letter. If, while giving the resignation, you clearly mentioned that you wish to resign with immediate effect and are ready to pay the 90 days' salary, and they have not acted upon it by accepting the resignation within a practical time (maybe 7 days), then you can claim this period as a notice period. However, if they accepted your resignation with a clause that you have to serve a 90-day notice, it's better for you to discuss it with your reporting authority and settle the matter.

Alternatively, you can hand over another letter stating that you had already submitted your resignation, a certain period (e.g., 20 or 30 days) has passed, and you will not be able to report for duties from the specified date. Kindly request them to relieve you before that date by deducting the balance period salary. You may also check with the company you are planning to join if they can delay your joining by 90 days. Currently, the most important point for you is to join the new job within the approved time.

Therefore, try to resolve this matter amicably. Otherwise, stop going to the office from the date you will mention in your next letter and see whatever money they claim. One thing is certain: the salary for the notice period does not include various allowances like transportation, lunch, medical, etc. You only need to pay Basic + DA, if any, for 90 days to the company.

Regards,
Navneet Sarin

Dear UKM, you seem to be confused about what you want to do—whether to join a new job or continue with your current job. What will happen if you do not continue for the 90-day notice period? When you gave the interview for the new job, you should have informed them that the company you are currently working for requires a 90-day notice period.

Anyway, first, make up your mind. In case any difficulties arise, we are here to help you thereafter. You can contact us.

I hope this helps clarify things for you.

Best regards,

It's a difficult situation for both parties, but as an employee, it's advisable to resolve it mutually by submitting a request to your immediate boss.