Immediate Resignation Without Notice: Can Employers Deduct a Week's Salary? What Do You Think?

If any employee gives resignation with immediate effect without notice period, and the employer's notice period was a week, and the employee has worked a week before resignation, in this case, the employer can deduct a week's salary to fulfill the notice period. It does not matter whether the employer accepts the resignation or not. In this scenario, whether the employee and employer remain connected or not is a question to consider. What is your opinion?

If an employee resigns with immediate effect without a notice period, and the employer refuses to accept it with bad intentions, what should be done? The employer's notice period was a week, and the employee worked for a week before resigning. The employee has since stopped going to the office. After 15 days of resignation, the employer is asking the employee to sign a Non-Disclosure Agreement (NDA).

In this case, the employer can deduct a week's salary to fulfill the notice period. It does not matter whether the employer accepts the resignation or not. The question is whether the employee and employer relationship remains intact or not.

What is your opinion?

It's the case of my son. After completing his graduation in BFA, he pursued a two-year diploma in VFX 3D modeling. The institute provided a telephone number for placement, and my son contacted the owner of a 10x10 feet company. The owner administered some tests, which my son completed from home. Following the tests, the owner requested a final discussion, where the salary was set at Rs 10,000. Surprisingly, the owner did not show my son around the company premises; instead, the conversation took place in a hotel.

Subsequently, the employer sent an unsigned appointment letter via email without a digital signature. My son started working for the company in the last week of June. Initially, he expected to work alongside other employees, but to his dismay, he found himself alone. Being a fresher and aspiring for career growth, he sought guidance from seniors, which was lacking in the company.

On his first day, the employer handed him a copy of the employment agreement and instructed him to read and sign it. My son, after a brief perusal, signed the document, only to receive an unsigned photocopy in return. A closer inspection revealed clauses preventing him from working in the same field post-resignation for two years and joining a competitor.

Upon noticing these restrictive clauses, I contacted the employer, who promised to consult his lawyer but failed to follow up. The agreement allowed the employer to terminate my son with a week's notice, yet there was no provision for the employee. After a week of service, my son and I decided that without proper guidance or colleagues, it was futile to continue working there. He resigned immediately via email, refusing to serve the notice period.

The employer responded negatively, demanding a month's notice and alleging my son had accessed sensitive data. Threats of legal action ensued, including contacting my son's institute with false accusations. Despite agreeing to sign a non-disclosure agreement (NDA) if deemed reasonable, we have yet to receive it.

The mental distress caused by these events has been overwhelming for the past fifteen days. I seek advice on protecting my son's interests in case the employer initiates legal proceedings. I am deeply concerned as my son embarks on his career, only to encounter such unscrupulous practices.

Thank you.

As understood, you're in a situation where your notice period is one week. You resigned without serving the notice period and prefer not to pay for it. Instead, you want your employer to deduct or adjust the notice period pay against the week you worked before resignation, for which you have not been paid.

Notice Period Adjustment

Yes, your employer can adjust your one week's pay against the one-week notice period you have not served, provided there is a notice period adjustment or NP recovery clause mentioned in your offer, appointment, or contract letter. Alternatively, you may speak to your employer and mutually agree to have it adjusted for a smooth transition.

Many times, email conversations and communications create gaps and ambiguities. We always advise employees to have a face-to-face, polite conversation with their employer or HR about any plans to exit, as it builds "fruitful relationships."

Regards,
[username]

Now that you have given the full details, let's start from the top. It's the case of my son. After completing his graduation in BFA, he pursued a two-year diploma in VFX 3D modeling. The institute provided a telephone number for placement. My son contacted the owner of a small company, who conducted some tests remotely. Following the tests, the owner requested a final in-person discussion, during which a monthly salary of Rs 10,000 was agreed upon. Surprisingly, the owner did not show my son the company premises and conducted the meeting in a hotel.

The initial mistake was accepting the job offer without fully understanding the company or considering its alignment with his career goals. While working for a small company can be beneficial, it must complement one's career plans to be a wise decision. Nevertheless, this experience serves as a valuable lesson in your son's professional journey.

Subsequently, the employer sent an unsigned appointment letter via email, which is legally acceptable under the IT Act. However, it is essential to verify the authenticity of such emails, especially during forensic audits.

Upon joining the company, my son discovered he was the sole employee besides the employer. As a fresher beginning his career, he sought guidance from senior colleagues, which was not available in this setup. The employer handed my son an employment agreement to sign on the first day, outlining restrictions on future employment in the same field post-resignation.

Upon reviewing the agreement, it became apparent that certain clauses, such as the non-compete provision, are unenforceable under contract law. Therefore, your son is not bound by these restrictions and can pursue opportunities in his chosen field freely.

Following a discussion between my son and the employer regarding the lack of mentorship and support within the company, my son decided to tender his resignation via email with immediate effect. While it is advisable to serve notice periods, especially in professional settings, the terms specified in the appointment letter should dictate the notice period duration.

The employer's subsequent demands for my son to return to the office or face legal repercussions are concerning. It is crucial to address these threats promptly and preemptively to safeguard your son's interests. Consider involving law enforcement if necessary to prevent harassment and false accusations.

In response to the employer's coercive tactics, including threats of legal action and the imposition of an NDA, it is important to prioritize your son's well-being and legal rights. If the NDA does not contain objectionable terms and aligns with industry standards, your son may consider signing it. However, the absence of clauses related to resignation, notice periods, or NDAs in the original agreement raises questions about the employer's motives.

In the event of legal action from the employer, seeking legal counsel is advisable to protect your son's rights and navigate the situation effectively. Document all communications and interactions with the employer for future reference and potential legal proceedings.

The ongoing mental distress caused by the employer's actions is unacceptable. It is crucial to address these challenges promptly and seek support from relevant authorities to resolve the situation and protect your son's professional interests.

If the employer continues to harass or threaten legal action, remaining vigilant and seeking legal advice will be essential in safeguarding your son's reputation and career prospects.

I have presented my case honestly, seeking guidance on protecting my son's interests in the face of potential legal actions from his employer. I am deeply concerned about his budding career being jeopardized by the actions of an unscrupulous employer.

Regards

Very well advised by the learned member @Saswatabanerjee. Please follow what has been advised above. There is nothing to worry about at this point in time related to his employment, bond, NDA, etc.

However, as an abundance of caution, you should lodge a formal complaint with the police station against the employer that the said employer is threatening you with legal cases, theft charges. You can also inform the college authority who referred you to this company.

You have asked two queries:

Notice Period Recovery

Any employer has the right to recover the notice period or to waive it. First, check your appointment letter to see if it mentions notice period recovery. If it does, all terms and conditions of the appointment letter will apply to you.

Employer-Employee Relationship Closure

The relationship between employer and employee is not considered closed until all dues are cleared. In every full and final payment, there is a statement clearly mentioned at the bottom of the format:

"I, [Name], S/o [Father's Name], residing at [Address], working with M/s [Company Name], today on [Date] at [Time], acknowledge that I have received all my dues from the aforesaid company and an amount of Rs. [Amount] (in words) as full and final payment. From today onward, there will be no relationship between me and M/s [Company Name] as employee and employer. If any default is found, it will be my total responsibility."

Or

"This is to certify that Mr. [Name], S/o [Father's Name], residing at [Address], working with our company M/s [Company Name], has received all his dues with his full and final payment as Rs. [Amount] (in words). From today onward, there will be no relationship between Mr. [Name] and M/s [Company Name] as employee and employer. If any default is found, it will be totally Mr. [Name]'s responsibility. The company will not be responsible."

Regards

You can pay the company one week's salary in lieu of notice. It comes to square one as they have to pay you for the one week's service prior to your resignation. However, on record, it does not look good on you for not fulfilling the one week's notice on resignation.

Sir, I went through all the documents. Nothing is mentioned about any notice period. It is only specified that the termination notice from the employer's side is one week. A one-week notice is required for termination to an employee.

Thanks

Hello all,

I have left my last employer (big MNC) in 7 days (2 days induction), and I am an experienced candidate. Also, they haven't provided any sort of training even though I worked from the very first day. Now they are asking for 2 lakhs as per the service level contract. Am I liable to pay?