Facing a Tough Choice: What Are the Legal Risks of Absconding After a Notice Buy-Out Offer Is Rejected?

Hi all, I am in a situation wherein I need to abscond from my current employer to seize a life-changing opportunity. My notice period is three months. I am offered to serve one month and 'buy-out' the remaining two months by paying at my gross salary (the offer letter has a buy-out clause, but it mentions that the company has a choice not to accept it).

Legal implications of absconding

So, can somebody share the legal implications if I just abscond at the end of the one-month period? From my research on the internet, I understand that the company can send me a legal notice to serve the remaining two months or pay dues in lieu of that. I have already offered payment for the two months of the notice period, but HR is refusing to accept it. So, once I abscond, they will have to accept the payment anyway.

Experience certificate after absconding

Another question is, after they accept payment following my absconding, can they still withhold my experience certificate? I read somewhere that as per Section 77 of CLRW (Labour laws), issuing a 'Service Certificate' is mandatory on the part of the employer. So, can somebody share if I can rightfully ask for an experience certificate once I pay the notice buy-out amount when HR sends a legal notice?

Thank you.

Consequences of Absconding from an Organization

Do not make the mistake of absconding from an organization. Your reason for exit will be saved in the database as "Absconding." Even if you pay the notice amount, the reason for leaving the organization will not change. If your new organization conducts your background verification, there are chances you might not pass it, and that could lead to termination.

The wise action is to have a talk with your reporting manager and HR, and explain the situation to them. No employer will stop you if you are pursuing a better opportunity. Alternatively, speak with your new organization to give you a grace period to join after completing your notice period.

Plan carefully for a better future in the long run.

Legal Implications of Absconding from Employment

Since you have a life-changing opportunity, you should not abscond from the company. From a legal perspective, absconding is considered serious misconduct, and the company can initiate legal action against you. Resignation is entirely at your discretion. No one can force you to continue your employment; it is your choice and right. If you have a better opportunity, legally, your company cannot deny buying out the notice period. Even if the company has the choice not to accept it, such a clause in a service agreement is one-sided. As per Section 27 of the Indian Contract Act, 1872, a one-sided contract shall be null and void.

Landmark Judgment: Star India Pvt. Ltd. v Laxmiraj Seetharam Nayek

In the landmark judgment of the Bombay High Court in the case of Star India Pvt. Ltd. v Laxmiraj Seetharam Nayek and another (2003), the Honorable court observed that in the long process of every person's career, no one else can have proprietary rights or interest in the acquisition of excellence. The court also observed that if the plaintiff had the right to terminate the contract on the grounds of misconduct, it cannot be said that the defendant had absolutely no right to resign from employment due to better prospects or other personal reasons. If one finds better employment with better remuneration and other service conditions, they cannot be tied down by the terms of the service contract.

Therefore, you should report for duty immediately. The company cannot deny buying out the remaining notice period; the payment in lieu is the amount of damages incurred, if any, due to the sudden exit of the employee. Hence, pay the amount in lieu and ask for relieving.

Thanks & Regards,

V. SHAKYA

HR & Labour, Corporate Laws Advisor

Dear Shakya,

Thank you for your advice. I am more than willing to pay the company for the damages caused due to my sudden exit from the company. I have sent multiple emails to the company HR to ask for the amount that I am required to pay as per the company policy. However, they have not responded. I have also informed them that I have no intention of 'Absconding' or 'Running Away' but just that my personal situation doesn't enable me to serve the complete notice period.

The company HR and my manager are not at all supportive. They are intentionally not accepting payment in lieu of the notice period just to stop me so that my next offer gets canceled.

Legal precedents and options

Is there any legal precedent in which the court forced the employer to accept the payment in lieu of the notice period and complete exit formalities for the employee? Also, legally, do I have any law at my disposal to save myself from legal trouble as I have already informed the company that I will leave by a certain date well before 15 days in advance and hence practically I am not absconding.