Can My Friend Face Legal Trouble for Skipping His Notice Period Even If He Pays?

One of my friends has resigned from the company recently and wants to leave immediately. He was in a senior position, and as per the appointment letter, was required to serve a notice period of 30 days. His new company is agreeing to pay his current company the amount for the notice period not served. However, the management is adamant and says they don't want money but want the employee to complete his notice period. Please suggest if the company can take any legal action against him if he doesn't wish to serve the notice period but is willing to pay in lieu of it.

Regards,
Amit

I am also in the same situation. Our official notice period is 2 months, but I need it within 30 days. Are there any other possibilities for immediate termination? What are the reasons we can get immediate termination?

Thanks,
Madhan

1. As you said, if he is in the probation period, then there is no need to serve a notice period unless a particular clause is mentioned in the appointment letter for the probation period.
2. If there is no clause mentioned, you may leave.
3. If the appointment letter mentions that the employee should pay one month's salary in lieu of the notice period, then the management will accept that amount and relieve you.
4. It totally depends on the clauses mentioned in your appointment letter.

The company has the right to reject the payment in lieu of notice and demand that the entire notice period be served. Once the company has provided this in writing, if the employee exits without completing the notice period, the company can penalize the employee by issuing an absconding letter and also withholding the experience and relieving letter.

Even if the clause is present, it typically mentions the word 'can,' and therefore, the company reserves the right to reject the payment in lieu of notice. In a senior position, knowledge transfer to the right person holds more importance than money.

Therefore, it is necessary to convince the management through negotiation before making a decision.

Regards,
Ashutosh Thakre

Dear Amit and all followers with a similar issue,

First of all, I would like to mention that it is quite unethical to leave a company without serving proper notice as required prior to leaving any company, irrespective of size and the position one holds in that organization. However, this is an ethical issue and has nothing to do with individual requirements.

Legal Considerations for Notice Period

Please go through the terms of appointment. There must be some clear mention about the terms of separation from the company, either on the part of management or on the part of the concerned employee. Follow the terms, and there will be no legal consequences. If notice is required, give notice; if equivalent payment can be made in lieu of notice, make the payment. I don't see any reason that the HR people in your organization will force you to serve the notice period if provisions allow for payment in lieu thereof.

If one fails to fulfill any of the two conditions (notice period or payment in lieu of notice), he will unnecessarily warrant legal consequences that will adversely affect one's future prospects and plans in a career.

Regards,
AK Jain

Dear Amit, Your query has been well answered by our esteemed team member Shri. A.K. Jain, providing transparency for both employees and employers. The exit procedures should always be clearly outlined in the appointment order, not only during the probationary period but also post-confirmation. Every employee has the right to choose their career path for better prospects but must adhere to the prescribed procedures. As Mr. Jain rightly mentioned, serve the notice period or provide payment in lieu thereof, and request management for early relieving.

Growing Trend of Omitted Exit Clauses

There is a growing trend where the exit clause is omitted from the appointment order. Recently, I encountered a case where the notice period was not specified, and an employee submitted resignation, seeking immediate relieving within a day. The employer did not agree, leading the employee to seek intervention from the Labour Commissioner. Ultimately, the Labour Commissioner upheld the employee's argument, ordering the employer to grant full and final settlement of services.

I urge all HR executives to take note and ensure that the exit clause is explicitly included in the appointment order, benefiting both employees and employers.

Regards,
Adoni Suguresh

Sr. Executive (Personnel, Administration & Industrial Relations) Retired
Labour Laws Consultant

Seeking Advice on Employment Rights and Experience Certificate

I have this query that I need your help with. I had been working in a school in Noida for the past three years. It has been a very challenging experience for me. Initially, I was recruited as a telesales person on a contract basis for admission purposes. Even though I was reluctant, the HR convinced me and promised that she would get me a new designation on the school payrolls within six months. All this was verbally promised. Trusting her, I joined. After the completion of my six months, I was then given an extension of three months. Even though I was a 'Telesales' person, I was relocated to the Delhi HO and given a different assignment. I persevered and sincerely focused on this particular assignment, growing the project significantly. Due to the appreciation of my work, my contract was again extended for another three months.

Finally, in June 2012, the Principal of the school, who appreciated my work, convinced the senior management to put me on the company’s payroll, and I was finally reporting to her. They did not increase my salary, only gave me a designation, and I became a full-timer. From June 2012 till November 2013, it was good. I was an EA to the principal, looking after the assignment and also HR. Being a sincere worker, I never thought of going to the senior management to ask for a hike in salary. They only gave me an appraisal of Rs. 1900 in the last two years, but everything was good as the environment and people were great, and I had no complaints.

In November 2013, the Principal left due to the senior management. I was to report to the new Principal, who was a complete contrast to her. She had problems dealing with everyone and couldn’t manage a rapport with anyone. Things went from being great to miserable. She started creating politics between all the employees, and the whole thing went out of control to such an extent that all of us decided to go to the country director after four months of bearing. He listened to us and made inquiries. Top management people came in to talk to us, and we told them the truth. Then it all backfired. One day I found out they were looking to recruit a new EA. I got shifted out of the school and back again into the HO, now without any designation. So technically, I’m still an EA, and there is also the new EA.

From April to June 2014, I asked for a meeting with the CD, and finally, he met me. I asked him why I had still not been given a designation even though the work I had been given was completely different from what I was doing. He just replied that due to financial constraints and budgeting, I 'may' have to wait till the next financial year, and that too he could not guarantee. Also, he was furious as I had indirectly conspired against the new principal and was forming a union, which was a shocker for me. I would not be given a raise till then either. So I discussed this with my new supervisor, and she told me that nothing would happen. I again called for a meeting with the CD in May. In the meantime, I got two offers from prestigious schools offering me better pay packages. I asked him again about my designation status and increment, and he again told me that he couldn’t do anything.

After consultation with my supervisor, I decided to resign the same evening. The new school was recruiting me, and I had to join within 20 days. My notice period was three months. My supervisor discussed this angle with the CD, who told her that he would take legal action if I didn’t serve my three-month notice period. I decided that I would not serve the notice period. I had over 20 days of pending leaves. Finally, he must have consulted his lawyer and submitted to my given resignation.

I have joined my new school. However, my question is, I’m not asking for my salary, but in the above-mentioned circumstances and being treated so unfairly, am I entitled to my salary for the number of days I had worked? Also, am I not entitled to receive an experience certificate? This experience has really shaken me up and unfortunately made me believe in the phrase 'Kaam utna karo ki salary jyada lage'.

I feel abused and taken for a ride. Kindly suggest.

Regards