Was My Forced Resignation and Reduced Settlement Legal? Seeking Advice on Next Steps

I used to work for a multinational firm as a permanent employee for almost 10 years in middle management. I was forced to resign in January this year based on my performance rating from the previous company. The company relieved me on the same day. I submitted my resignation with a 3-month notice as per my employment letter, with an understanding from HR that the full 3 months' salary would be paid. However, this was later reduced to 1 month after submitting the resignation, which I refused to accept.

The company delayed the full and final settlement (F&F) for almost 6 months. In the F&F, the company proposed to pay 1 month's salary and recover 2 months' salary. After a lot of argument over email, the company agreed to pay 1 month's salary without any recovery, gratuity, and performance pay.

Upon my demand for 2 months' pay and compensation, the HR department claims that adequate notice has been given and a 1-month payout is provided as per the agreement. However, there is no written or email communication in this regard. The company now says that the F&F was settled as per company records and warned me to refrain from encroaching on company time further, failing which they will be constrained to take appropriate action against me.

Seeking Advice from Senior Members

I want to know from senior members:

1. Whether the termination is illegal as I was not allowed to serve the notice period.

2. The law under which such disputes are covered, as I was in the managerial cadre.

3. Whether I am right in demanding an additional 2 months' pay and compensation.

Please also advise on the further course of action or if I should drop the matter if I am wrong.

Regards,
[Username]

The termination of your employment based on the alleged resignation is illegal, apart from your claim of it being forced. Whether by compulsion or otherwise, once you've tendered your resignation, especially in writing with a prospective date, it becomes challenging to prove it was forced.

Prospective Resignation and Its Implications

Regarding your resignation, it appears to be a prospective one, effective only from the future date mentioned, regardless of the actual date of acceptance by your employer. However, the company relieved you on the same day of your resignation submission and refused to pay the salary for the notice period, despite your willingness to serve for three months. A resignation intended to take effect from a future date remains in an inchoate state until the specified date arrives. Here, I would like to quote the observation of the honorable High Court of Andhra Pradesh in Coromandel Fertilizers Ltd. vs. P. Venugopal [1986 (I) LLJ 417]:

"The letter of resignation is a 'form of an offer' by the employee, and hence it is open to the management to accept or reject it. However, it is not open to the management to accept the resignation from a different date than what was offered, as such acceptance would amount to a counter-offer, which again requires acceptance from the employee."

You should file a civil suit against the management for breach of contract terms and claim damages.

Regards,
[username]

Sir,

Thank you for the insight. Two more things I would like to know:

1. Any recent judgments or observations of the court on such matters.

2. Which laws are violated by the company? There are various laws like the Contract Labor Act, Shop and Establishment Act, or the Industrial Dispute Act.

Regards