Navigating Immediate Resignation: Can I Avoid Notice Period Penalties Due to Family Needs?

I am Pranali Chavan. I have been working with Serco Pvt Ltd as a team leader from 2010 to the present. I have recently submitted my immediate resignation due to having a one-year-old child who has been taken care of by my mother-in-law. Unfortunately, my mother-in-law's health has been deteriorating, making it increasingly challenging for her to manage my son throughout the day. This is the primary reason for my abrupt resignation. Additionally, my mother-in-law has decided to return to her native place, necessitating my relocation to our hometown for a few days as I have no other viable options available.

My HR team is unwilling to accept these circumstances and is insisting that I either serve the notice period or pay 60 days' salary. I have assured them that I will remain accessible to my team members at all times to ensure that work is not disrupted.

I am requesting my gratuity, experience letter, and PF without being required to pay the 60 days' salary due to the aforementioned reasons.

Your guidance on this matter would be greatly appreciated.

Kind regards,
Pranali Chavan

Dear PRANALICHAVAN,

You are entitled to the following at the time of resignation:
1. Gratuity - as you seem to have served for the qualifying period.
2. Bonus - in case the same was being paid to you in previous years.
3. EL encashment - in case you have earned leave in credit.

You have to serve the notice period as per the terms of the contract or pay a salary equivalent to the notice period. If you are being denied these entitlements, you may serve a legal notice and then approach the labor department.

Best Wishes,
Col. Suresh Rathi

Dear Suresh,

Thank you for your suggestion. If I file a legal notice towards the company, will I get all the benefits (gratuity, experience letter, and PF)?

Notice Period and Payment Obligations

If there is a 60-day notice period or payment in lieu thereof, then you have to either serve 60 days or pay the equivalent amount. You cannot escape this clause on personal grounds as stated by you. You have been rightly informed that you have to serve the notice period or pay notice pay.

Once this issue is settled and the employer-employee relationship comes to an end, you will be entitled to seek your benefits such as gratuity and PF.

If you are ready to pay the notice pay, then ask the company to adjust the notice pay with your gratuity and pay the rest. Please communicate in writing with acknowledgment for future reference.

Rather than antagonize an employer, make two or three more attempts to convince them (HR) or meet the top of the organization and inform them that you would proceed with legal action or contact the Labor Department, or both. It would be fair considering you have worked for nearly seven years. At any cost, you should receive your dues as per the labor law provisions under various Acts in vogue.

V. MURALI

Steps for Gratuity and Final Settlement

Have you filled out the gratuity form and submitted it to them? If not, do it first. As per law, they will have to release gratuity within a stipulated period. Once that happens, write to them for your full and final settlement and wait for their reply. If they do not release the gratuity within the stipulated period as per law, then complain to the relevant authority, attaching the copy of the form that you submitted to them along with a copy of your resignation letter. This will alert them that you mean business and will try to resolve things amicably.

I have given the same advice to an employee who worked for 5 years in an IT company. The moment the show cause notice went to the occupier from the statutory authority of gratuity, every penny of gratuity and full and final settlement was made within 48 hours.

Dear All,

Now, I have discussed with my HR team, and I informed them that I am ready to serve the notice period after making arrangements for my 1-year-old baby for 1 month. I do not want to pay for 2 months' salary, and I want all my FNF and PF. However, they are insisting that I pay for 2 months' salary only. Kindly suggest to me what I should do.

Do you have any EL/PL balance now? Usually, any EL/PL balance can be set off against the notice period—though it also depends on the company. Check your appointment letter for this. If there's any clause that this is possible, check discreetly if it's still current. The HR may come out with some excuse that this policy has been changed now and you can't do it.

In case you think HR may indeed say you can't do it now, then apply that leave to make arrangements for your child.

Gratuity and PF

There's nothing the company can do, even if they tried. These are statutory obligations for any company. The PF is under the control of the respective PF Commissioner in your area/city—make sure you get the corresponding forms processed.

Regarding gratuity, 'Anonymous' has given the right suggestion—that should work. Sometimes, where words don't spur management into action, 'danda' does—or the threat of its usage does.

Regarding your line "I am ready to serve notice period after done some arrangement of my 1-year-old baby for 1 month," suggest putting this in writing to your immediate boss with cc: to HR. The very fact that they want money and nothing else clearly shows their intent.

All the best.

Regards, TS

I think whether an employee would serve the notice period or pay in lieu thereof post tendering of resignation is solely the discretion of the management. The management may use the notice period to find an alternate employee, but if an alternate arrangement is made quickly, then the management reserves the right to accept the resignation then and there.