Can an Employer Legally Refuse a Resignation When Notice Period is Offered? Seeking Advice

I want your suggestions on the following issue.

One of my friends has been working in a reputed MNC for the past 1.7 years, and out of this, one year was her bond period. Now, after serving for seven more months following the completion of the bond period, she wants to resign due to family problems. However, the concerned HR is refusing to accept her resignation, even though my friend is willing to serve the one-month notice period as per the offer letter. Moreover, they are threatening her, stating that if she leaves without completing the notice period, they will blacklist her name in the MNC association. To avoid this, she is being asked to pay Rs. 1,00,000, which was not mentioned in the offer letter.

Employer's Right to Deny Resignation

My question is, does an employer have the right to deny an employee's resignation when the employee is willing to serve the notice period?

I request all seniors to respond to this issue as my friend is under a lot of stress due to these problems.

Thanks and regards

Hi,

If any employee wants to quit, they are free to do so by serving the notice period. No employer can hold onto a resignation letter without providing a reason. If they are not allowing you to leave, ask a friend to find out the reason for not being allowed to leave.

Thank you.

Submit a formal resignation in writing giving one month notice (or as stipulated in the offer letter) and move on in life. The employer cannot legally refuse your resignation if submitted properly. Their threats to blacklist, etc., are illegal and should be ignored.

A resignation cannot be rejected by an employer. Also, an employer cannot blacklist an employee. Before we conclude on the steps, ask your friend the exact reason for quitting the job. Does she really have issues personally, or has she got another offer? If she has another offer, then fighting with that employer is not wise, as she has to produce the employment documents to the new organization.

If she is taking a break from work, then she can approach a lawyer and handle this legally. If she seeks help from a law office or takes this legally, then the employer will not drag the issue but rather solve it amicably, as they are well aware of whose side the mistake is.

Dear Anitha,

Your friend has already completed the bond period as per your statement. Have you mentioned the offer letter? Has she received any fresh appointment letter after accepting the offer letter? Has she deposited her original testimonials while submitting the bond? Does she have a copy of the bond? Has she received any type of training from the company during the bond period? Was the bond executed on stamp paper?

First, you should have answers to all the questions mentioned. An employee, by signing a contract of employment, does not sign a bond of slavery. Therefore, the employee always has the right to resign from the employment, even if they have agreed to serve the employer for a specific time period. The employer is eligible for compensation to the extent of expenses incurred by him and not to the value of the bond. In a valid employment bond, the parties have to ensure that the following requisites have been complied with: (i) the agreement has to be signed by the parties with free consent; (ii) the stipulated conditions must be reasonable; and (iii) the conditions imposed on the employee must be proven to be necessary to safeguard the interests of the employer. Furthermore, an employment bond stipulating conditions such as serving the employer compulsorily for a specific time period or penalties for incurring expenses is in the nature of an indemnity bond. Therefore, such an employment bond has to be executed on a stamp paper of appropriate value to be valid and enforceable. There are remedies available in law, but one should have the mental and financial strength to avail of the provisions of the law.

Regards,
A. Prakash

Also, check carefully in both the documents (bond and offer/appointment letter) when does the bond period commence. Is there a condition that the bond period commences after the training and probation is over, which could be after 12 months in your case? If that is the case, you have only completed 7 months of the bond.

A S Bhat

Hi Anitha,

HR has the right to reject the resignation, but with a proper reason. So, tell your friend to speak with HR and ask for the proper reason for rejection. As you mentioned, if they are threatening, it's better to stay there until she gets relieved because in the future, if she joins some other company, at the time of background verification, she may face some trouble from her current company.