Can I Recover My Notice Pay After Accepting a Settlement Under Pressure?

I resigned from my position on 24/2, stating that I am willing to serve the full 45-day notice period. On the same day, the company processed my full and final settlement but did not include the payment for the notice period. When I raised this issue, they informed me that if I refused to accept the full and final settlement without the notice pay, they might not even pay me my other salary components. Faced with this ultimatum, I felt compelled to accept the settlement. I would like to inquire if I can recover my notice pay from them, as it is explicitly stated in my offer letter.

Thank you.

Notice Pay and Resignation

Generally, if the employee resigns, the company will not pay notice pay to them. You would have been entitled to notice pay if the company had terminated your services. In this case, you have resigned and shown your willingness to serve the notice period. However, the company has relieved you at the same time and implicitly waived off the notice period. In my opinion, you should not be getting the notice pay, and the company is right as per the facts mentioned in your query above.

Thanks & Regards,
Avika

Points to Consider in Your Situation

- You have willingly resigned.
- You have offered to serve the notice period mandated by the company.

Accepting the resignation with X days' notice is a prerogative of the company; the company can also decide whether to let you serve the notice or not. Your company has decided to waive the notice period, which has no legal flaw.

Had the company terminated you, they could decide whether they want you to serve the notice period or give you payment in lieu of notice. In your case, you have resigned; hence the company is within its rights to settle by waiving off the notice.

Unless there are other relevant circumstances to your resignation, do let us know.

Regards,
Deena Jagasia

I am also of the same opinion as stated above. When you have resigned, the company will not pay 'notice pay'; however, if the company wants your service, they will allow you to serve the notice period. In your case, when they have finalized your Final Settlement, you have no right to ask for notice pay.