Ending Employer-Employee Relationships During Probation: When Is It Officially Over?

Hi respected seniors of this community, I have seen many contradictory statements in different forums regarding the way and process of ending employer-employee relationships. So I'm putting forward a very basic question due to my unawareness of the law.

Ending Employer-Employee Relationships During Probation

If an employee (suppose working for a month or two - during probation) wants to end the relationship with his employer, when does it actually end?

1. If he resigns and serves the notice period mentioned, if any, then on his last working day.

2. If he resigns with immediate effect and doesn't serve the notice period but is willing to buy back the notice period, then once he pays the full amount, only then does the relationship stand canceled.

3. If he resigns with immediate effect and is willing to buy back the notice period, even if his company doesn't accept the resignation on the day of resignation, the agreement stands canceled.

In the first two options, an employee can be properly relieved, I guess. But if somebody resigns with immediate effect and mentions in his resignation letter that he is ready to buy back the notice period as per the employment agreement and the employer doesn't accept it for maybe 10-15 days or more, then can the employee say that his relationship ended the day he put down his papers? Because theoretically, he intended to buy his full notice period, so does he need acceptance of resignation in this case? Or without that, can he claim the agreement is over?

If he needs acceptance, then why?

Awaiting some views on it.

Understanding Immediate Termination and Resignation

What I have understood after reading a few threads is that when an employer terminates an employee with immediate effect, the contract gets terminated. Then the employer proceeds with full and final settlement (f&f) and pays the due amount to the employee. The last working day is the day when the employee is terminated, and that's when the agreement also gets terminated.

Similarly, when an employee resigns with immediate effect, the agreement gets terminated. Then the employer will calculate the f&f, and the employee has to pay the notice period in lieu of what is mentioned in the agreement.

In both cases, neither party requires acceptance from the other. The employer doesn't need the employee's acceptance to terminate them with immediate effect. Similarly, the employee doesn't need acceptance for their resignation with immediate effect.

Please correct me if I'm wrong from a legal perspective.

Understanding Contracts and Employment Relationships

An agreement here is a contract governed by the Indian Contract Act. Contracts create what legal theorists call "Jus in Personam," which means justice against defined persons. In contrast, other laws create "Jus in Rem," meaning justice against the world. In the Contract Act, only the outer periphery is defined, specifying what cannot be done. For example, no contract with illegal or immoral considerations can be made. Other aspects of the contract, like terms, roles, and responsibilities, are left to the parties to decide.

I am explaining this because, in every case, the terms used in the contract must be considered. What are the powers and duties of the employer or employee? If they transgress these powers, it breaches the contract, and damages can be claimed by the parties.

Generally, during probation, the employer retains the right to remove an employee, so the employer can remove an employee without it being called a breach, as this specific power is vested in the contract. However, for an employee, from the date they are inducted into service (not training), they are bound by a notice period. This can be understood by the language used in the drafting of contracts. Generally, the drafter will commence the liability of the employee from the commencement of the job. Therefore, their obligation to adhere to the notice period depends on the terms of the contract.

Regards

Notice Period and Resignation: Understanding the Process

Yes, the employee is bound by a notice period. But what if the contract has a clause for notice period buyback or in lieu of? In such cases, the employee can resign without any acceptance or permission, provided they intend to pay the damages mentioned in the contract for the said act.

In this scenario, is the day they resign going to be their last working day and relieving day as well? Or do they need the employer's acceptance even when it's mentioned in the HR handbook that an employee can resign voluntarily at any time, provided they intend to pay the damages?

That is exactly what my question is. When an employee is ready to pay the damages, do they need acceptance from their employer for their resignation to take immediate effect?

Understanding Termination and Resignation Processes

For the sake of my understanding, I'm thinking that the employee is a confirmed one, and the employer wants to terminate him with immediate effect. The employer can do it immediately provided he pays the notice period amount to the employee. For that, the employer doesn't need acceptance from the employee.

Then, when an employee resigns with immediate effect and is ready to pay the damages mentioned in the agreement, why does he need permission or acceptance from the employer?

As a layman, I think in both cases, nobody needs permission from the other party provided the party breaching the contract is ready to pay the damage amount to the party who suffers.

Am I right? Please do let me know if my understanding is wrong.

Understanding the End of the Employer-Employee Relationship

For any scenario, the employer-employee relationship effectively ends only when he/she is actually struck off from the rolls of the employer due to:

i) death,
ii) the last working day, or
iii) the date of actual relief - whichever is earlier, regardless of whether he/she resigns, is terminated, or the contract is over. Normally, practically, and effectively, the date up to which his/her salary accrues or is paid/to be paid, either during probation or thereafter, whether the notice period has commenced, is running, or is over.

These events always coincide with the end of service with an employer, up to which he/she will be treated as on the rolls of the employer. Thereafter, the separation occurs, regardless of the reason for such a separation.

Role of the Notice Period

The notice period, as such, is only the indicator by the end of which the employee ends his relationship with the employer. In the case of "pay in lieu of notice period," the effective date mentioned in the relieving letter is the effective date of separation. It's possible that even after the end of the notice period, an employee may be retained on the rolls until all relevant issues are sorted out. However, in any case, what is stated in the relieving letter is the final say in this.