Salary Withheld After Resignation Without Notice: Can I Take Action to Get Paid?

I had been working in a transcription company for six months in the state of Kerala. In my appointment letter, it is mentioned that I need to serve a 2-month notice period before resigning. Due to some personal issues, I have resigned from the company without giving any notice, but I have sent them a resignation letter. They have not paid me my salary for that month, despite me working there until the end of the month and sending them repeated reminders about the salary. I am currently not employed anywhere else.

Seeking Advice on Salary Payment Issue

Can I take any action regarding this? I am in need of the money.

Regards.

Notice Period and Salary Payment Clause

As your appointment letter contains a clause stating that you have to give two months' notice, there will be a reciprocal condition of payment of salary in lieu of notice. In that case, there is little you can do against the management.

Regards,
Varghese Mathew
[Phone Number Removed For Privacy Reasons]

I agree that in normal circumstances, we follow contract/appointment terms. However, one can challenge the company if the company has not accepted and informed you that your salary has been adjusted against the notice period. You can meet any advocate at the labor court; they will guide you on the actions and remedies for this.

Regards,
Taru

I second our experts; there was no buyout for the notice period, and the company did not agree to release you. Hence, the full and final settlement remains their prerogative.

Legal Implications of Not Serving Notice Period

If you had accepted a two-month notice period as the terms of employment and left the job without any notice, you have defaulted, and the company can take a legal view of it. In case any clause in the employment contract or in the HR policies of the company permits employees to make a payment in lieu of the notice period, you should avail of that and deposit two months' salary to get your full and final settlement done.

Also, if you have left the company without obtaining clearance from them regarding the return of company property, I-Card, refund of a loan (if any), etc., you can be in serious trouble.

Please remember that the company is also entitled to sue an employee for breach of the employment contract, just as much as an employee can challenge the company in a court of law. If an employee feels that he/she has the freedom to do anything, one may be sadly mistaken or badly guided.

I agree with Mr. Bhatia fully. In your instant case, leave alone thinking of taking legal recourse against the company; you should approach your company's HR and try to settle the matter amicably. When you are in such dire need of money, there is no point in running around lawyers and courts when you are equally at fault.

When you know very clearly that your notice period is two months, why have you not served that notice period? In this case, the chances of receiving your salary are very low. Even if you receive money from your organization, you may get only the amount left after adjusting your two months' notice period.

Advice for Resolving Notice Period Issues

My best advice to you is to kindly go to your organization's HR, discuss and settle your Full and Final, take your experience letter, and get properly relieved. This way, at least you can show your experience in this company in the future while searching for a job.

So, leave the past behind and start thinking about the future.

Regards,
NNR

I think we need to be careful with what we say on such forums. We cannot say what we think but what ought to be said when it comes to issues involving disputes arising out of contracts or statutes.

In this case, I must say Mr. Bhatia and Mr. Rao have been spot on. Technically, the resignation process comprises the submission of a letter of resignation, its acceptance, compliance with terms applicable to resignation, clearance process, and finally full and final settlement. In your case, just because you have sent a letter does not mean you have resigned; the organization can actually group you in the 'absconders' list.

The organization is the aggrieved party here and therefore has the locus standi to act as it may deem fit. Please do not resort to any misadventure of seeking legal recourse, which will be counterproductive.

We need to remember that we should never burn our boats or break our bridges. Please go back to your employer, showcase your situation, and complete the separation process. If your situation is genuine, I think any right-minded employer might even condone certain clauses related to the 'notice period' and accord you favorable separation.

It is necessary that you do this to avoid an adverse impact on your career.

The views expressed in reply, I feel, are more intimidatory than advisory. The notice period given in a contract should be reasonable in law to guard the bilateral interest. The standard notice period is 30 days. In this case, a 60-day notice period is unreasonable and adverse to the standard industry practice. Employees in need of livelihood accept the appointment. Courts can look into this aspect and examine the circumstances of an employee accepting/leaving the job. However, an employee can bargain at the time of the initial appointment. But in this case, it appears that the employee is short of funds, so he can't go to court. A company can harass the employees in many ways, but this should not be a cause of fear. The employee can make written complaints to the State Labour Commissioner, send a written application to the Chief Justice of the High Court of his state, and a number of other statutory authorities for the redressal of his grievance. The decision will depend upon the merits of the circumstances.

Regards

Before proceeding to do whatever is advised by my seniors, I would like you to do the following:

1. Were you on probation in the employment? If so, what was the probation period?
2. Was there any clause regarding the notice period to leave or terminate the service during the probation period?

Understanding Probation Period Clauses

Generally, the service of a probationer shall be terminable by either side without a notice period or with a day's notice unless specifically mentioned in the offer. Hence, please study the appointment letter and act accordingly. If there is a clause for the probation period, take advantage of it and contact the management/HR for getting dues either directly or through labor authorities. Best of luck.

Regards.

I appreciate the views expressed by Mr. Irajgali. An employee is expected first to exhaust all channels available to him. The initial channel is a straightforward talk with the HR Department of the concerned company. The employee should honestly disclose all the circumstances and request favorable consideration of his case. If he fails at this stage, then he can try to move to the next stage of making a representation to the Labour Commissioner of his state with a copy to the Labour Minister. Even if this does not work, the employee can submit a written prayer (application) to the Chief Justice of the High Court of his state, stating his poor and needy condition and praying for justice. But before moving to the next stages, the employee has to ensure that he has no belongings of the company with him and that he has surrendered/deposited all such belongings to the company.

With good wishes to all.

Regards,
Srivastava

Settlement and Notice Period Concerns

This is a mistake on your side, and you should ask for a full and final settlement from them. Otherwise, you will receive a notice to provide money equivalent to one month's notice too (one month's salary, which they already hold). You can approach the management, provide a valid reason for your request, and propose another option to serve a two-month notice period as per the contract.

Dear Sir, I was working in a company for 11 months, and the management asked me to quit as their firm is under heavy financial loss. They have paid me all my dues but failed to pay my notice pay. Can I lodge a complaint against the company to the Labour Commissioner? The company is in Uttar Pradesh. Regards, Ajay Agnihotri

Notice Period Standards

There is nothing like a 30-day "standard" notice period. In fact, many companies, including Tatas, have a 3-month notice period since the law requires a 3-month payment in lieu of notice in case of termination. Hence, 3 months is more "standard" than 30 days.

Legal Forums and Considerations

In my view, it is better to avoid legal forums as far as possible unless you are very sure that the facts of the case favor you, particularly since we know very well how the Labor office and Factory Inspector office work in our country.