Can I Legally Challenge My Employer's Refusal to Allow a Notice Period Buyout? Seeking Advice!

I resigned from my current organization on 08/18/2015. My last working day (after adjustment of leaves) is turning out to be 10/06/2015. However, I want to be relieved on 09/25/2015 as I have to join a different organization on 09/28/2015. So, I went to my manager and HR seeking the option of buying out the remaining days of the notice period (11 days). But my manager and HR both declined the option of buying out the notice period and told me that I would have to serve the complete 60 days of the notice period, and my LWD would remain 10/06/2015, else I would not get my relieving letter. My offer letter has the following verbiage:

Separation from the Company

a. The retirement age of the Company is 58 years. At the time of formally resigning from service, you shall serve the 60 days of the Notice Period.

b. When you formally resign from the service of the Company, the Company may, at its discretion, permit you to:
i. Adjust the vacation leave accumulated toward part of the notice period.
ii. Pay up for the notice period in lieu thereof on your Annual Gross Compensation.

c. If your services are terminated by the Company due to misdemeanor, unsatisfactory performance, or any other disciplinary matter, the Company will pay your salary for the Notice Period starting from the date on which the Company informs you of such matter. If the termination of services is for reasons mentioned in 1 (a) above, no salary is payable for the Notice Period.

Question: Is my manager and HR right in saying that I don't have an option of buying out my notice period and it is their choice to decide how they want me to leave, i.e., either by buying out or serving the full notice period?

What option do I have as an employee in this situation? Can the labor court help me in this? All suggestions are welcome.

Thanks.

Understanding the Buyout Clause in Your Appointment Letter

The wording is very clear in the appointment letter. The company may allow you the option of a buyout. There is nothing that the labor court can help you with in this. The buyout clause is kept with the company; otherwise, the intellectual knowledge with the people will just not be translated. It is for the know-how of the processes and the systems and the sufficient time needed for someone else to join that the buyout option is generally at the disposal of the company. They can accept the same or can ask you to be present physically so that the work is not hindered. The only option is to convince the reporting manager to relieve you early.

Regards,
Ashutosh Thakre

Your date of release is at the organization's sole discretion. The labor court cannot intervene. However, if you choose not to complete the full notice period and depart the organization before 11 days, you may not receive a release order from your employer.

P.S.: Please use dates in this format: dd/mm/yyyy. It is preferable to write the month in English words rather than in numbers.

Normally, it is good to leave a company on good terms so that their doors are always open for your return. Even though the buyout is at the company's discretion, generally, management likes to part ways with an employee with a warm handshake. The HR may have their opinion, so please elevate the issue and discuss it with the management. Additionally, try to negotiate with your new organization to extend your notice period. I am confident that, being a valuable asset, they will accommodate your request.

Lastly, remember that a relieving letter is just a document with no significant value in life. As long as your financial dues are settled, you can resign at any time. Keep in mind that not every situation ends up in court, especially for a mere 11-day gap, as the management would incur more costs pursuing legal actions.

To Sum Up:

1. Engage in discussions with higher-ups like the VP or President.
2. Explore options with your new organization.
3. Bid farewell and transition to a new role if necessary.

Blessings,
Dr. Ram

If the new company has a background verification process in place, then you will need a relieving letter from your present company. So, before saying goodbye to the present company, tell them that you may not get a relieving letter. If they agree, you can join the new company.

A S Bhat

Like other members pointed out, "the Company may, at its discretion, permit you to" is crystal clear on the legal position. When you had such clarity from Day-1 in this Company about the NP Rules, on what basis did you commit to join earlier than the relieving date in the new Company? You seem to have made your own set of assumptions and now ask for ways to handle your boss and HR.

Solution to the Notice Period Dilemma

I can see only one solution: rather than spending time convincing your boss and HR here, better speak to the new Company's HR and explain the situation and ask for more time. If you have done the interview very well (please note that getting an offer does not mean that one is superlative), they might agree. Usually, HR calculates that even if they have to begin the hiring process again, they would surely need more time than in the case of waiting for you a few more days. Hope you get the point.

All the Best.

Regards,
TS