Can My Employer Legally Delay My Resignation Despite Serving Notice? What Are My Options?

I have a notice period of 1 month with my current employer (a US-based startup started in India sometime back), and I have resigned from my company. I am expecting to be released within the next month after serving the one-month notice period. However, my employer is not accepting my resignation and has not provided me with a final release date.

Upon reviewing the offer letter, I noticed that one of the termination clauses states, "Notwithstanding anything aforesaid, termination by you shall be subject to the satisfactory completion of all your existing duties, obligations, and projects."

My question is, can the company delay the acceptance of my resignation and my subsequent release using the above clause? Can I seek legal recourse against the company for not releasing me even after serving the notice period? What steps should I take in this situation?

"Notwithstanding anything aforesaid, termination by you shall be subject to the satisfactory completion of all your existing duties, obligations, and projects."

Anything of this nature pending against you?? This being a clause, you need to talk to your reporting manager and confirm that no task whatsoever is pending against you. You can seek legal recourse no doubt, but this clause will be used against you. Therefore, the first thing is to quickly clarify from your manager.

Legal Recourse for Resignation Acceptance

The first appropriate option is relieving without bricks and bats. However, if the employer is arbitrarily bent on making an employee a bonded laborer, the legal position should be known to the employee. The clause of termination stating, "Notwithstanding anything aforesaid, termination by you shall be subject to the satisfactory completion of all your existing duties, obligations, and projects," is contrary to the Shops and Establishment Act provisions regarding the notice period, generally of one month. The employee must check the relevant State Act about the extent of the notice period and the permissible mode for quitting.

A running company has many ongoing projects, but it does not mean that the employee becomes a bonded laborer for months together. An employee can quit after complying with statutory provisions under the Act. These provisions supersede the contractual terms, which are void to that extent, as the provisions of the Act relating to the notice period are not subject to contract.

Suffice to mention a few lines from the Madras High Court:

"Madras High Court

J. Nandhini vs. The Deputy Commissioner Of Labour decided on 31 March 2003

Notwithstanding the existence of such a clause, the termination of services of such an employee can only be for a reasonable cause, as that requirement has, in effect, been super-added by Section 41(1) of the Act to all contracts of employment with employees covered by this Act. It is not open to any employer to contract out of that requirement as Section 41 is not subject to contract, on the contrary."

Obviously, in that eventuality, the remedy is by approaching the Inspector under the said Act or alternatively, by filing a civil suit to claim an interim mandatory injunction to obtain a relieving letter.

Thanks

Sushil

Thank you for the answer. My manager kept persuading me to withdraw the resignation for a week. Now, when I didn't relent, he has assigned me some work after my resignation and is asking me to complete it before leaving. He expects it to be finished to his satisfaction within the next 1.5 months, even though my notice period ends in 15 days. I suspect they are attempting to prolong my notice period under the guise of giving me additional work.

Decline this work in writing. Tell him that it will take 1.5 months for completion and that you will not be in a position to complete it properly. A copy of this email/letter can be cc'd to HR as well. Learned poster Shri Sushil has provided you with the legal position. Open the Shops and Establishment Act applicable to your state, and read about leaving service, termination, etc. Then, follow the rules.

Dear Brother Mr. Nathrao,

My view is, let the manager assign any work, and let the employee do his work sincerely until the statutory notice period is completed. If he declines to work, then the manager may take action for insubordination. On the contrary, after the notice period expires, the manager loses any right to take such action because the employee will be deemed to have been relieved in the eyes of the law.

Thanks,
Sushil

Dear Sushil,

Thank you for the alternate view. When an employer starts behaving in a difficult manner, the employee is stuck. On the other hand, if the employer takes a broad view and allows those who want to leave or change jobs voluntarily, work relations would improve.

My point of view was that the manager would fuss around, saying that half the job is done, and now the work by the new person would be difficult - so complete it and then leave.

Thank you to everyone for the suggestions and views. I really appreciate your help. Regarding my latest position, I am following up daily personally and through emails. I had to take up the work since it is cited as very urgent and nobody else can do it. I also estimated that I could complete it within my notice period. However, the work has dependencies on another team that needs to complete something before I can start, and that is getting delayed, causing me to lose days. The last official email I received from my manager stated that I can only be relieved post-completion of the assigned work and to discuss the completion date of the assigned work.

It's a small company with no proper policies, and it's a one-man show. HR is merely a puppet. I am trying my best to settle things amicably, but I don't know what will happen.

Sir,

You need not bother about any clause. If you have submitted your resignation and the same has been reached to the concerned, you have to serve the required notice period as per the terms of appointment. After completion of your notice period, you can demand a relieving letter from the existing employer. If the employer is not willing to give a relieving letter, you can go to the court of law to settle your claim.

Regards,
Raju