Facing a Notice Period Dilemma: Can My Friend Leave Without Legal Trouble?

Dear Seniors, I am starting this thread to help one of my friends. He needs some expert advice and is looking forward to getting the same from citehr. He resigned last month on the 29th (29.05.2013). The one-month notice period shall be over on the 29th of this month (29.06.2013). He wants to leave the organization on the 29th of this month and is ready to pay one month's salary to the company as per the below clause in the appointment letter.

Notice Period/Termination Clause in the Appointment Letter:

"The contract of employment between you and the Company may be terminated by either party by giving a 2-month notice or gross monthly salary in lieu thereof. However, release from the services of the company will be subject to satisfactory handover of the responsibilities assigned to you."

Now, the employer is denying to relieve him and saying he has to work for another one month to get a proper relieving letter, or else they will proceed with legal obligations.

Kindly Advise:

1. What will happen if the person leaves the company without serving another one-month notice period?

2. What legal action can the company take against him?

3. How can he defend himself if the company takes any legal action against him?

Regards

Answer to your question.

1. Nothing, since he is agreeing to pay a penalty in lieu of his notice period.

2. Nothing.

3. Does not arise.

Having said the above, if there is nothing much to lose by working for one more month, what's the harm? If your friend has an offer in hand, ask him to buy the time to join them.

Remember, it's better to leave on good terms than with bad memories. You don't know when you will need someone's help. This world is too small.

I have a case where a smart programmer worked for X company and left with a seriously bad relationship. He joined a better company with a better offer. All was going well for him, and then one day it so happened that his company merged with his old ex-company, and he had to face his old MD. The result, I guess you already know, he left the company and was without a job for almost a year. Fortunately, he is doing well now.

As an employee, provided the employer is not harassing you, there is no harm in accepting their reasonable demand rather than leaving a company on bad terms. For unreasonable demands, you have the right to reject them and also put them down in writing.

Note: In the above case, if your friend agrees to work for one more month, I am sure you are aware that he does not need to pay any penalty.

Regards,
Ukmitra

PS with politeness: As far as possible, don't publish your company's name if you are not the owner. Be discreet.

I would just like to contradict a little from Ukmitra. Though if we see that an employer can't force someone to work for him/her, in that case, and also since the appointment letter gives the option of notice period buyout, the company should be willing to accommodate the request.

However, if your friend is on a project which is very important and if the company does not have the right person to take the project full-fledged ahead after he is no longer associated with the company, the company may ask your friend to complete the notice period and allow them to find a suitable replacement. Also, if the project is expected to get over in that month's time, then the company may want him to finish the task and then leave rather than handing over only the final step.

There is always another side to the argument. I would only like to suggest you negotiate the period to be served and also seek from the new employer if they can accommodate the request...

Another Piece of Advice to Most People

Many people will tell prospective employers that they can join in one month's time by adjusting the notice against leaves or by paying for the notice period as per the clause. Kindly note that it is advisable to tell them that on paper your notice period is of X months, but the company has laid out an option of notice buyout. You'd like to avail the facility of notice buyout and try for early relief, but that would again depend on the project leader and other authorities to relieve you.

Always remember that though we can tender our resignation at any time, it is in the company's hands to relieve us. It is not that they would not, but there are certain procedures to be followed. That's all about it.

Thank you for spending your valuable time sharing the information. I hope with these inputs, my friend can make a wise decision. Thanks once again.

Regards.