Facing Salary Withholding After Resignation: How to Handle Notice Period Disputes?

I resigned from my job in February and sent a notice email. However, I did not specify my last working day. The company's policy requires a 3-month notice period. I asked the company to inform me of my last working day at their discretion. I never requested a shorter notice period and assured them I would provide as much notice as necessary. The company decided that I should work until the end of March. I completed all necessary paperwork by the end of March and finalized the exit process. Unfortunately, my final month's salary has not been paid. Upon requesting my Full and Final (F&F) settlement, the company is now insisting that I should compensate them for not fulfilling the entire notice period. I only have the email in which I submitted my resignation. They have not provided any written acknowledgment and have only communicated verbally. What steps can I take in this situation?

There is nothing much that can be done if you let such important instructions remain verbal.

How much are you due as Fn F and how much is the one-month notice that is to be paid? You may have to strike a compromise with the company.

It is not clear when you say you resigned - what is the date of resignation you specified?

Understanding the Notice Period Clause

The objective of the obligatory notice clause in the context of resignation is to allow the employer time to find a replacement. When you are aware that your notice period is three months, and you do not specify your proposed last working day as per the contract, you essentially leave it to the management's discretion. This can be interpreted as your willingness to pay for any unserved notice period if you are relieved earlier.

The management might have assumed they could find a replacement within a month or so, while verbally indicating that you should stay until the end of March. They may have found a suitable replacement and thus relieved you, withholding your last month's salary as compensation for the unserved notice period. The management seems to have acted strategically. It might be beneficial to seek a compromise, as suggested by Mr. Rao.

Regards