Can an Oral Resignation Be Enforced? Seeking Advice on Settlement and Legal Options

Dear Friends, I have a doubt regarding full and final settlement, please advise on the same. I was working in an MNC and was relieved by the company two months ago.

The Scenario

During my tenure, I came across some acts committed by my managers that could tarnish the company's name and integrity. This somehow became known to the managers, and they decided to corner me, doing things that were very insulting. During our internal discussions, I informed them that I was planning to resign from my job.

As a result of unfair employee practices by the managers, I decided to escalate all the issues to the top management and provided all the relevant information.

At that time, HR conducted an oral telephonic inquiry with me and found that they were siding with my managers. On the same day as the inquiry, both HR and my manager relieved me of my duties without any prior notice.

According to our company policy, there is a 3-month notice period required by either party or payment of 3 months' salary in case of immediate termination. However, without providing any reasons, I was released, with a mail stating that "my resignation is accepted."

I informed the management that I had not formally submitted my resignation. They claimed that my oral discussion with the managers about my intention to leave was considered as a resignation, leading to my immediate release.

In the settlement process, the management did not provide me with the 3 months' notice period pay.

I have been fighting for my settlement up until now.

Request for Advice

Please advise on how to proceed. Can an oral discussion regarding resignation be considered as a formal resignation? What laws govern settlements? Can I take legal action?

Regards,

Clarification on Oral Resignation and Employment Termination

It is correct that oral discussions will not be considered as a formal statement in scenarios such as resignation from employment. Therefore, relieving an employee in this manner would mean terminating them without offering an opportunity to be heard or without following the principles of natural justice.

If you have been working with the company not in a supervisory or managerial capacity, you can seek help from the District Labour Officer, the appropriate authority under the Industrial Disputes Act. However, if you have been working as a supervisor or manager with control over other workers, such as sanctioning leave, appraising their performance, or initiating disciplinary action against them, you will be considered a managerial person and will not receive support under the above Act. Nevertheless, if the terms of the appointment order state so, you are entitled to a three-month notice period or salary in lieu.

Even if you had submitted a written resignation indicating that you would like to be relieved after three months from the date of resignation, you should receive three months' pay if the employer relieves you immediately.

Regards,
Madhu.T.K

Madhu has advised well. The act is against the principle of natural justice. If you are not in a supervisory role, the entire process of disciplinary action and grievance handling should be as per the Industrial Dispute Act. In your case, it does not seem that it was followed properly.

Further, even if the resignation is "accepted," you should receive 3 months' salary.

Regards,

I second the opinion of Mr. Madhu TK. Resignation cannot be oral, and a discussion to resign cannot be termed as resignation by any stretch of the imagination. Surely, as suggested above, please contact the appropriate authority for your grievance redressal.

But before that, send a legal notice to your ex-employer regarding your dues. I have seen that in most cases, the problem gets resolved by a legal notice itself.

Irregularities and Whistleblower Protection

What were the irregularities? Was it the suppression of facts that should statutorily be disclosed to regulatory authorities or stakeholders? In that case, you may receive "whistleblower" protection. May our members with a legal background elaborate on this?

Regards

I sympathize with you for your plight. The law is on your side concerning your F & F settlement. Pursue it legally; you will win. As for their possible defense, victimization, or retaliatory actions, I am unsure. Wait and watch. Perhaps you should prepare to protect yourself against potential false allegations aiming to deny your F & F settlement.

Whistle Blower Concept in India

Friends, please read the attached article downloaded from the site regarding the position on the "Whistle Blower" concept in India, which is considered a "stillborn child" state. We have witnessed the case of 'Satyam Computers' and many more instances in India's corporate sector. I have personally encountered such situations. In the unorganized sector, the occurrences are countless.

All the best.

Review Your Appointment Letter

Just once, cross-check the terms and conditions with respect to your appointment letter. There are many loopholes for HR to defend themselves from the current situation. If everything is clear from your side, then take this issue to the notice of the labor commission.