Forced to Resign: Will Skipping Half the Notice Period Affect My Compensation?

Hi, I was forced to resign by the company in a retrenchment process with 1 month's advance salary. After receiving the same, I was on leave and did not serve half of the notice period, which is 15 days. Will it affect my compensation? Is it necessary to work the notice period?

Regards, P K Jha

Retrenchment Compensation and Legal Implications

Retrenchment compensation is applicable to you if you are a workman under the Industrial Disputes Act. In case of retrenchment, the company is to retrench the last person to be appointed first. Generally, retrenchment compensation contains 15 days of salary for every completed year of service and other benefits, including gratuity if applicable in your case.

There are no legal provisions for "forced to resign." If you were forced to resign, it means your service was illegally terminated. Such action on behalf of the management is illegal and has nothing to do with retrenchment.

Notice Period and Legal Validity

When the process of cessation of employment, either in the way of illegal termination or so-called retrenchment, is in question, the issue related to serving a notice period has no legal validity.

You may need to provide clear facts of the case as mentioned below for further suggestions:

1. Date of joining
2. Your nature of duty
3. Nature of the company with strength
4. Last date of work
5. How exactly your service came to an end?

In addition to the above, there are a few things to be clear.

1) Isn't it that in connection with retrenchment you have been offered one month's compensation in addition to the notice period (which you are supposed to serve), or isn't it that one month's salary was given in lieu of the notice period of one month (in which case you have no obligation to serve)?

2) What do the terms and conditions of your appointment say about your "termination"? Is it there or silent about it?

3) Do you wish to contest the termination per se, or do you wish to hasten the process and treat it as a closed chapter? What is/are the reasons for this termination?

4) Are you alone in being terminated like this, or are there others as well?

5) Do you come under the Industrial Disputes Act or the Shops and Commercial Establishments Act, or something else?

6) Are they willing to issue a "Service Certificate" and a relieving letter?