Can My Employer Really Sue Me for Not Serving My Notice Period? Need Advice!

I am Rohit, and I joined an E-commerce organization on 11th April 2016 as a Customer Care Executive. I am under a probation period of 4 months. I have just signed an offer letter of merely one page, in which it was mentioned that the notice period is 30 days. If, in any case, the notice period is not served, I am bound to pay one month's salary to the company.

I have resigned today and am not in a situation to serve the notice period as I have to prepare for my exams commencing on 1st June 2016. The company owner threatened me by saying that he will take legal action if I don't serve the notice period or pay one month's salary.

Please advise, as I am a bit scared now and wondering because I have not signed any BOND, CONTRACT, or APPOINTMENT LETTER, and I'll be completing my one month tomorrow. I am wondering if they are authorized to take legal action. If yes, then what can be the consequences of that?

Regards, Rohit

Dear Rohit,

Upon accepting the offer, you have joined the services of the company, thus initiating the contract of employment. One of the conditions of the offer pertains to the notice period for exiting. Therefore, the absence of an appointment order from the company or the execution of a bond is immaterial. You are required to serve the notice period before being formally relieved or alternatively, pay one month's salary as stipulated earlier.

Hi Nashbramhall,

I didn't sign any contract/bond/appointment letter. I have just signed and accepted the offer letter.

Dear Rohit,

Your present stance, based on the non-issuance of appointment orders and non-execution of a bond, amounts to approbation and reprobation, which is not permitted in law. As I mentioned earlier, the letter of offer and your unequivocal acceptance together formed an implicit contract of employment between the employer and yourself. If you violate any one of the terms of the contract, your employer can sue for damages as well as the notice salary from you.

Offer Letter vs. Agreement

An offer letter is not equivalent to an agreement. An offer or appointment letter is a document prepared by the company incorporating terms and conditions in favor of the employer, which the employee has to accept while taking the job. Hence, the Apex Court has stated that it cannot be considered that the employee has agreed to all the terms and conditions as such terms were not drafted in consultation with him. In the case of an agreement, the matter is different.

Consequences of Not Serving Notice Period

For a non-serving notice period, the employer can withhold your dues. They can sue you in court to recover such dues and training costs if training was provided during your course of employment. Please note that they can take legal action against you, but the chances of winning are very low for them.

Please check www.labourlawhub.com for more information.

Understanding Your Obligations During Probation

I am under a probation period of 4 months. I have just signed an offer letter of merely one page, which mentioned that the notice period is 30 days. If you leave without notice, you are bound to pay one month's salary. Whether you signed an offer letter or a ten-page agreement, it does not matter ethically. You were fully aware of the notice period and the pay in lieu of notice. It is your knowledge of your obligation towards your employer that matters, not the legalities per se. A contract has come into force with your acceptance and subsequent service with the company. Do the right thing and obey the terms of the contract, or get it waived by the company through a polite request. Otherwise, please pay and move on in life. This is my way of looking at things. Consult a good lawyer.

Regards

Dear Rohit,

First of all, please be informed that the company can deduct one month's basic salary if you fail to serve the one-month notice period as stipulated in your signed offer letter.

If you agree to pay your basic salary and hand over all the processes to the company's authority before submitting your resignation, then the company cannot take any legal action against you.

I hope this resolves your query.

Warm Regards,
Sudhir

Dear Rohit,

If it is mentioned in your offer letter that the notice period would be 1 month, then you have to either serve the notice period or pay back to the employer. If you don't serve the notice period, then your employer has all the rights reserved to deduct your salary. However, it doesn't sound practical that your employer will go to the extent of fighting a lengthy court case, which is a very time-consuming and costly way, just to recover one month's salary.

Please let me know if you need any further assistance.

Thank you.

Dear sir,

You have signed the offer and joined on the agreed terms and conditions of your employment. The one month's notice as per the signed papers is enforceable. Both parties are under obligation to follow the same. Your employer is free to take legal action in case you do not serve the company for one month after submitting resignation. You can prepare and request him to relieve you before, which is possible.

Regards,
RDS Yadav
Director,
Navtarang HR Services

You seem to be under a misunderstanding if you believe that signing only an offer letter, which was merely one page, does not constitute a contract or bond. Acceptance of the offer conditions by signing the offer letter, whether it is one page or one sentence, is legally considered an agreement to a contract between the employee and employer. This signifies your approval and consent to serve the employer under those terms and conditions. Therefore, do not be under any misconception. It is better to fulfill the conditions of the offer letter or seek to have the terms relaxed by your employer.