Can My Employer Legally Block My Exit Even If I Offer a Notice Period Buyout? What Are My Risks?

Legal Implications of Notice Period Buyout

Can an employer sue an employee who refuses to serve the entire notice period and instead offers to buy out the remaining notice period? They have a clause in the offer letter stating that it is at their discretion to agree to waive the notice period. I am in a similar situation where I have offered to buy out the notice period, and I am determined to leave the company with or without the relieving letter. As I am still in the probation period and resigned within 3 months, this experience is not very important for me. Plus, the next employer wants me to join early.

The company is adamant about not relieving me. It seems that they may try to cause problems for me as the head of my team has taken it very personally. Can they legally try to affect my career? What are the risks in quitting without a relieving letter and joining the next employer? Please help with some legal advice.

Review Your Appointment Conditions

Please review your appointment conditions. Typically, the notice period during the probation period is minimal. If the buyout option is not explicitly stated and agreed upon, you will be required to fulfill the notice period as outlined in the employment contract.

Regards,

As per the offer letter, a notice period of 3 months is mentioned even during probation. If the company agrees to early relieving, then the notice period can be bought out. However, as per the offer letter, it is at their discretion to accept the buyout.

Given this scenario, what are the risks in leaving the job without serving the complete notice period in case they do not accept the buyout money? Please advise.

Like Pon mentioned, you will be governed by the Terms in the Appointment Letter. However much you may not relish this, I think you SHOULD HAVE made this calculation/exercise/analysis/check BEFORE you accepted the other offer. Or did you just PRESUME THAT NOTHING WILL HAPPEN?

The standard line/phrase 'at the Company's discretion' exists for every company. So your company isn't the odd-man out.

Apprehensions About Career Impact

Coming to your apprehensions about whether the company can adversely affect your career, the answer is both yes and no. It all depends on 'how they view the situation.' Legally, you will already be on the wrong side if you quit without serving the notice period.

The company also has the chance to respond to any Background Check Enquiries later in your career—not just the next one you join. And in case you do not wish to show this experience, one never knows what CAN happen in the future. After all, the world's a small place, and you might bump into the very same set of people later in your career. There wouldn't be a right or wrong answer to this scenario—it's up to you whether to take a chance or not.

Regards,
TS

The company has the full power to reject the buyout. The justified argument from the company's side is that they are not after money, but the person's knowledge that needs to be transplanted to the new joiner. Therefore, they would require you to serve a full 3-month notice. They can also term you as absconding and are free to take legal action against you. Why do you think you joined the company if you now feel that the experience is not relevant? Don't take your career so lightly; this will surely affect you in the long run.

Regards,
Ashutosh Thakre

Clause in Offer Letter

"Can be terminated either by you or by the company by giving notice of three months or payment in lieu thereof on either side."

Can the company legally refuse my request for a notice period payout?

Regards,

Understanding the Notice Period Clause

The operative/key phrase in the clause is: "Can be...". 'Can' also indicates the possibility of 'cannot'—right? Now you know how good or bad the English language is—where one could play with words? 

So, in case you are thinking of resigning and using this clause, I suggest keeping all your options open. The best approach would be to negotiate with the new company that your notice period is 3 months and you can try for an earlier release, but you can't commit right now. Mentally prepare them for the worst-case scenario—which is 3 months. If that's not okay with them, then you need to make the final decision—whether to accept such an offer and take a chance or look for other opportunities where your situation is viewed realistically.

All the best.

Regards,
TS

The clause is self-explanatory. The word "can" is used, so they may or may not accept the buyout clause. It's not compulsory. Therefore, the best way is to negotiate with both the employers and then come to a common understanding.

Regards,
Ashutosh Thakre