Navigating Early Release and Salary Concerns During Notice Period: What Are My Rights?

Resignation and Notice Period Query

I resigned on the 10th of January 2017. My company has a notice period of 3 months, so in my resignation letter, I confirmed to the company that I would serve the full 3-month notice period. My HR department accepted my resignation and informed me that they would grant an early release on the 21st of January 2017.

Clarification on Salary for Notice Period

I am seeking clarification on whether the company is required to pay me the remaining 2.5 months of basic pay as per our contract agreement. If I request an early release, then I understand that I may need to pay for the balance days of the notice period. Upon inquiring with HR, they referred me to a clause stating that "If the company provides an early release, the decision to pay the basic salary for the notice period is at the complete discretion of the management." Are there any laws governing the management's discretion in such cases, considering that my resignation process, clearance, and handover have all been completed in accordance with company policies?

Medical Condition and Job Assignment

Upon discussing this management discretion with HR, they offered me the option to be placed at a client location that requires 6 hours of travel, which I am medically unfit to undertake. I have provided HR with a medical certificate to support my inability to fulfill this assignment.

I would appreciate your guidance on this matter.

Kind regards

Understanding Payment Deductions and Legal Protections

See, there are two aspects to this:

If during the said period your payment is 18,000 or below, then only you are covered under the Payment of Wages Act. Also, you must not be in a managerial position. Holding this true, they cannot deduct wages. But if you are not covered here, then you are not protected, and your contract with the company that you signed will be the bible.

The Role of the Shops and Establishment Act

The second part is the Shops and Establishment Act. It will save you if you are not in a managerial position; then also, they cannot deduct wages. But in both cases, they can sue you for breach of contract in a civil court and get what they paid you.

Notice period is 3 months. This notice period is used by the company to search for your replacement. Assuming the company has found your replacement within 1 month, then there is no use in keeping you on hold for 2 extra months. The new joiner may not be ready to wait for another 2 months. Hence, the management uses its discretion on when to release you once you have tendered your resignation.

I do not find any illegality in this. Maybe other learned members can shed light on it.

Dear Sir,

I feel that when a company is ready to relieve you before three months, it implies that the company may agree to waive the notice period wages. Of course, it is at the discretion of the company to use its discretion in your favor. Your personal rapport and good track record will certainly help in this regard.

G. P. Agarwal, Lucknow

Medical Concerns and Company Travel Requirements

I have been an above-expectations performer for the last two years, and then the company suddenly demands that I work at a client site with a travel time of five hours, for which I am medically restrained. I had a knee operation done earlier, so I was advised by the doctor not to travel much. I explained this to the company, stating that I am physically not capable of extensive travel, but they convinced me that it was only two hours, which actually turned out to be five hours.

Still, I attempted to comply, resulting in the re-emergence of my problem, and now I am on bed rest for a month.

Even though I have submitted the medical certificates and MRI reports, the company gave me a choice: either be relieved earlier or travel for 5-6 hours if I want to serve the notice period. If I don't go, then I will be released earlier without notice pay.

Management Discretion and Medical Clauses

Shouldn't the discretion of management follow some clauses or grounds before deciding whether this should be in favor or against the employee? In my previous four companies, the discretion of management had clauses excluding medical reasons.

Transfer and Medical Concerns

Your transfer to a client's place or another location depends entirely on the terms of your appointment. If there is a transfer clause, then you cannot avoid such a transfer irrespective of whether you are a 'good' or 'bad' performer.

You may submit all your medical documents with a forwarding letter under acknowledgment, requesting the management to look into the issue, provided that your medical document clearly states that you are unable to travel for more than a certain number of hours daily.

Early Release and Legal Implications

Now, coming to the option given by the company that you will be "released earlier without notice pay," it is like being asked to leave, and no such clause exists under any law. A company asking someone to leave or resign amounts to termination, for which you can raise a dispute before the court of law.

At this stage, you may do your best to negotiate or settle the matter amicably. If it does not go well, you may think of going the legal route.