Can Employers Refuse Resignation? Exploring Employee Rights and Remedies When Giving Notice

Understanding Resignation and Employer Acceptance

Resignation is the voluntary relinquishment of work. However, it has been held by the Supreme Court that resignation is effective only upon acceptance by the employer. The Supreme Court has stated:

"A resignation by an employee would, however, normally require acceptance by the employer in order to be effective. It can be that in certain circumstances an employer would be justified in refusing to accept the employee's resignation, for instance, when an employee wants to leave in the middle of work that is urgent or important, and for the completion of which his presence and participation are necessary. An employer can also refuse to accept the resignation when there is a disciplinary inquiry pending against the employee. In such a case, permitting an employee to resign would allow him to escape the consequences of an adverse finding against him in such an inquiry. There can also be other grounds on which an employer would be justified in not accepting the resignation of an employee."

The above information is provided considering the employer's interest.

Employee Remedies When Willing to Resign with Prior Notice

What are the remedies under these circumstances if an employee is willing to resign with prior notice?

Observations on Resignation and Employment Choice

The observation of the Apex Court cited, apart from highlighting the employers' interest in accepting the resignation of an employee for the reasons stated thereof as viewed by you, also brings out the fact of when it becomes effective. However, it cannot be arbitrary for the simple reason that employment is always a matter of choice. You cannot compel an unwilling employer to continue an unwanted employee in his services on account of valid and genuine reasons; similarly, an unwilling employee cannot be compelled indefinitely to remain in employment.

That's why the schedule to the Industrial Employment (Standing Orders) Act, 1946, contains the subject matter of termination of employment, and Section 3(2) enjoins upon the employer to make provision for all the matters set out in the Schedule in the Standing Orders to be certified. Therefore, strictly speaking, on the expiry of the notice period for resignation, in the absence of the contingencies mentioned in the judgment, the employee should be relieved. If not, the employee can simply walk away, and it would not amount to abandonment of service warranting disciplinary action. On the contrary, if the employer has compelling reasons to retain, then cajolery with higher compensation is the only option.

Regards