Can My Employer Cut My Notice Period Short Without Paying Me? Let's Discuss!

My notice period is three months, and I have put in my papers. I resigned on 1st April 2013 and am serving a three-month notice to the employer, which ends on 29th June 2013. I have not requested early relieving. If my employer relieves me before 29th June 2013 without providing sufficient reason and notice, does my employer have to pay me for the difference in the notice period resulting from early relieving?

Contract Termination Clause

My contract termination clause states: "Your appointment can be terminated with three months prior written notice on either side. Notice pay and any other outstanding amounts due from you will be deducted from the company dues payable to you upon separation and/or recovered from you."

Thanks,

PK

The company cannot recover an undue amount from you. If the company decides to relieve you early, they can adjust the notice pay until the date of separation and not for the full three months.

Regards,
Shailesh Parikh
Vadodara, Gujarat
[Phone Number Removed For Privacy Reasons]

Thank you, Shailesh, for your reply. By mentioning recovery, they mean that if an employee does not serve the notice period of 3 months, they will recover the dues from the employees. However, I am ready to serve the notice period of 3 months. If they relieve me after 1 month of the notice period, do they have to pay me for the remaining 2 months of the notice period as I didn't request early relieving?

Interpreting your Termination Clause, it is clear that BOTH parties are accountable to pay dues in case of a violation/breach of terms under the appointment letter given to you. In your case, the employer is forcing you to leave despite your resignation to the management; hence, the employer has to pay your remaining notice period that you were yet to serve. Usually, there is a notice period required for terminating an employee who has an employment agreement.

However, there are exceptions to the Termination by the employer based on the Notice Period, which may not be stated in the appointment at times. Generally, it is understood that egregious behavior, violations, or misconduct that clearly puts the company in jeopardy may result in immediate termination without a notice period, and the employer is not accountable to pay such an employee.

If your case is not exceptional and is normal, then your employer is likely to compensate you for the rest of the stipulated period.

My notice period is three months, and I have submitted my resignation. I resigned on 1st April 2013 and am currently serving a three-month notice period, which ends on 29th June 2013. I have not requested early release. However, if my employer decides to relieve me before 29th June 2013 without providing sufficient reason and notice, are they obligated to pay me for the remaining notice period due to early relieving?

Termination Clause in Contract

The termination clause in my contract letter states: "Your appointment can be terminated with three months prior written notice on either side. Notice pay and any other outstanding amounts due from you will be deducted from the company dues payable to you upon separation and/or recovered from you."

Thank you,
PK

Best wishes for your future endeavors. I understand that your resignation may not have been voluntary, as otherwise, your employer could terminate you for any reason. It is unfortunate that such situations occur in India. If you are competent in your role, you should not worry. Stay calm during this period and consider seeking better job opportunities. Keep a copy of your resignation letter, duly acknowledged by your employer, as evidence to present to potential future employers.

Regards,
S. Rao

[Phone Number Removed For Privacy Reasons]

Has the company given you a notice sharing reasons for their early relieving? Since it is a case of resignation and not termination, and you are willing to serve the due notice period, the company, by accepting your resignation, is also bound by the principles of the appointment letter. Is the company forcing you to write to them about an early release? If yes, do not do that. Even if they terminate your services now, they are supposed to either give a complete report regarding the reasons for the same, record your response, and then justify their decision on paper.

Having said all of that, companies in India get away with these practices only because they know that people like you and I do not have the intent or wherewithal to take these matters to court. I would suggest trying to "talk" to the HR—do not keep mail records if you are not sure of what you want to write—and see where this leads.

All the best for your future.

As of now, they have not given any reason for early relieving. I will not sign any letter :). Thank you for your guidance.

Regards,
PK

I am sorry to offer a divergent view. It may be nice to examine the concept of notice.

Notice Clause in Employment Contracts

There is a notice (or pay in lieu thereof) clause for terminating a contract of employment. Due to this feature, in case the employer wants to pull a trigger, the employee gets time to find another engagement or gets money in lieu of such time. Similarly, when an employee pulls a trigger, the employer gets time to make alternate arrangements or money in lieu of the inconvenience arising out of the sudden exit decided by the employee.

Now, if the employee has already pulled the trigger and the employer thinks that it does not need time or notice, the notice can be waived. The action of termination of the contract is initiated by the employee and not the employer. In that case, the waiver of notice by the employer cannot be held as illegal or coercive. Neither can the employee insist upon specific performance!

I know several employers who assert the employer's right to waive notice in their contracts.

In this light, there is no harm in trying to get pay in lieu of the shortfall in notice, but your chance of success may not be as bright.

Best wishes,

I do not completely agree with this, and that's because the clauses of notice periods are as binding on the employee as on the employer. Any changes can only be made with mutual consent. Termination without proper reason is unlawful, and thus, the company has to go through a lot of procedures if they wish to terminate.

Let's see what some others have to say.

Regards,