Can My Employer Release Me Early Without Paying for the Full Notice Period?

Query Regarding Terms and Conditions of Employment

I have a query regarding the terms and conditions of employment. I have resigned from the company, let's say today, 7th May 2013, and according to the appointment letter, I have given two months' notice and asked for leaving on 6th July 2013. However, my employer is saying that they will release me before the expiry of the notice period due date, and they will not pay me for the remaining days. As per the appointment letter, either party has to give a two-month notice period or gross salary in lieu.

Kindly provide me with legal advice.

Regards,
Ankush Bhardwaj

Understanding Separation and Notice Periods

The separation works this way:

- If you are resigning:
a) You either serve the notice period or buy your notice period by paying your salary for the said period.
b) If the company wants to relieve you early, they will settle your F&F (Full and Final) till your last working day.

- If they are terminating you:
a) They either give you a notice period or salary in lieu of it.
b) If you wish to leave earlier, your F&F will be calculated till your last working day.

In your case, if you are resigning on 7th May and are ready to serve the full 2 months' notice, it is now up to the company to accept your resignation. They have accepted it and have given you a final date when they can relieve you (which is before the completion of the notice period - 6th July). This is fine. I do not think they are liable to pay you for the remaining period as they are to pay you in the notice only if they are terminating you, which is not the case. I hope I was able to clear your doubt.

I would like to complete my notice period of two months. However, I have received a call from their end stating that they will release me before the due date. How should I interpret this - as a voluntary release or a forced one?

Regards,
Ankush

As I said, the notice period is the period given by either party to the other so that they can prepare themselves for the future.

If the company is terminating your employment, they give you a notice period (so that during that time, you can search for another job) or pay your salary for the said period (so that, since they are relieving you early, they have taken care of your needs for the said period as it would have happened if you were on the job for the said period).

Similarly, when you resign, you have two options:

- To give full notice (so that the company can hire someone in your place and work doesn't stop)
- To pay the salary in lieu of it (in a way to compensate for early leaving).

When you submit your resignation letter, it is a letter to the management stating that you will be resigning and, as per the company's terms, the last day of working will be as per your notice period.

If, however, you are a cost to the company or the company thinks it can relieve you earlier, they have the full right to do so. They would compensate you only until your last working day. This is because when an employee resigns, it is only when the employee has no further intentions to work with the company.

Since you have already resigned and do not want to work there for whatever reason, you are being relieved. By the way, you never mentioned the reason for submitting the resignation letter. Why are you resigning? And why are you emphasizing completing the two months' notice period?

To add, being relieved earlier is not forceful; it is very much allowed. When you resign, the notice period is the maximum time that you would be going to the office, and if the notice period is 30 days, you wouldn't go there on the 31st day, right? So, the notice period is the maximum time. Companies are allowed to adjust your pending leaves against the notice period so that they can get early relief (this is also a practice in many companies).

If the company does not want to keep you or they think you are a non-performer, and since you have resigned, they would relieve you at the earliest opportunity.

Additionally, if the company terminates you and gives you a notice period of, say, two months in your case, and you wish to be relieved before that, the full and final settlement would be calculated only up to your last working day.

Ankush, regardless of the reason, the fact remains that you resigned. It is common for differences to arise in the employee-employer relationship, and at times, managers can become arrogant. If you felt compelled to resign due to the use of abusive language and it hurt your self-respect, it was commendable that you resigned.

Now, why would you want to continue working under a boss like that for two more months when they are willing to let you go sooner? Isn't it a relief that you won't have to deal with him for long?

If, however, you now believe that resigning was a mistake, I suggest going to HR immediately to inquire about the possibility of retracting your resignation. Typically, once a company accepts a resignation, it is final, but exceptions can be made based on performance and other factors.

I did not imply that you are a non-performer. You have received appreciation letters and recognition for your work. However, perceptions can change. Your manager may not view you as favorably now as they did before.

I understand that people often leave their jobs because of people - managers, supervisors, peers, and teammates.

Was Resigning the Right Decision?

One question for you - Do you think you made the right decision by resigning immediately? Honestly, in my opinion, that wasn't the best course of action. Here are the reasons:

Firstly, it is normal for managers to get frustrated due to the pressures they face, and they may vent on someone.

Secondly, even if your boss did lash out at you, how could you resign without securing another job in today's competitive job market?

Self-esteem is crucial, but don't let your ego cloud your judgment. Do not let a few insults blind you to the potential problems that could arise from a hasty decision.

I am still puzzled as to why you would stay in this job for two more months. What did you mention in your resignation letter?

Please provide the full story, as bits and pieces won't help you and could complicate matters if someone misinterprets the situation.

Take proactive steps to help yourself.

I just want to teach him a lesson that he can't do whatever he wants to do. There are some rules and regulations that should be followed, and also how can I lose my one-month salary? Besides all that, I want to set an example in this particular company for those who are scared to even put their words in front of their seniors.

Legal Point of View

I just want to check the legal point of view, and I believe that they cannot discharge me before the expiry of the due date of the notice period, or they have to pay me the salary for the rest of the notice period.

Regards,
Ankush

Dear Ankush,

Firstly, there is nothing wrong that they have done. You resigned, they accepted, and they are happy to relieve you. Let's consider the situation differently. Suppose you had a job offer from some XYZ company, and you needed to join the new firm in one month's time. You resigned from your job, and as per the rule, you have to serve a two-month notice period. However, your company relieves you earlier. In this case, you wouldn't have raised an issue. Here, you wouldn't have said that HR is doing wrong by relieving you early. You can't have both sides of the coin.

And also, how can I lose my one-month salary?

I asked you, do you have any job after that? You should have considered this before you resigned. Before resigning, it is essential for anyone to think about what options they have if the company accepts the resignation. Sorry to say, but you resigned out of your ego, and even now you are not ready to admit that you are at fault; instead, you want to feed your ego further by trying to teach the HR or supervisor or whomever a lesson (which you can't because they are not at fault).

Besides all that, I want to set an example in this particular company, where people are scared to even put their words in front of their seniors.

I would have appreciated it if you had stood up for your rights. Here you are trying to serve yourself and feed your ego, as you rightly said a few posts back. Honestly, take my advice. Instead of teaching your company a lesson, learn from the scenario and start looking for a new job.

But I just want to check the legal point of view, and I believe that they cannot discharge me before the expiry of the due date of the notice period, or they have to pay me salary for the rest of the notice period.

I told you once you file down papers, it is up to the company to give you a relieving date, and it depends on the company completely. They have not asked you to stop coming to the office. You resigned, and they are favoring you by relieving you. And yes, they would have paid you if they had terminated you. Sorry to state, but your ego is blinding you so much that despite telling you this in the past two posts that they are right in their practice and you can't claim anything, you still want someone to air your ego and say that yes, you are right. You would just waste your time, energy, and money on this. Start looking for a new job instead so that by the end of the employment with this firm, at least you have something or some hope. All the best, and sorry to be blunt, but I can't change the facts and laws to favor you. Hopefully, you must have understood in this post that the company has done nothing wrong, and you can't claim the salary for early relief they are giving.

Regards,

Ankush,

If you have already hired a lawyer and he has suggested what to do, I guess there's no point in wasting everyone's time here. Fighting, well, I don't deny your right to fight, but the consequences are odd.

Secondly, if I were paid for each session, I might give you different suggestions at different times, but I am trying to show you the real outcome (in most cases). It is a different thing that if you have a strong lawyer, you can prove the wrong things as right (especially in the Indian system).

All the best, anyway. And yes, just for the benefit of myself and for others who may/will follow the post, do let us know what the outcome of your fight-for-justice comes out to be.