Facing Legal Action for Leaving a Job Early: How to Handle a 90-Day Notice Demand?

Hi, I have received the appointment letter on the official ID but I have not signed it, and I abandoned the company within 1 month after receiving my salary. The reason being I had to work extra hours until late at night. I asked them that I can't continue further and resigned.

Now, as per the Full and Final (FNF) settlement, they are asking for money against a 90-day notice period, or else they will take legal action.

What should I do?

Legal Position on Employment Contracts and Termination

After going through the processes of recruitment and appointment, one becomes the employee of the other based on their willingness to do so and mutual acceptance of the terms. Similarly, since it is only a contract between the employer and the employee, it can very well be terminated by any one of the parties to the contract at any time during its subsistence. No provision of law can compel either an unwilling employee to continue his services under the employer until the natural termination of the contract or the unwilling employer to keep the unwanted employee in his service until the end. However, such an act of exit cannot be in violation of the terms and conditions contained in the contract of employment. When it is done so, legally the affected party can seek the fulfillment of the conditions stipulated by the other and sue for damages. This is the legal position of exit either at the instance of the employer or employee other than termination on disciplinary grounds.

Understanding Your Situation

Coming to your post, just because you have not signed the appointment either intentionally or just incidentally, you can't argue that you have never been appointed at all or not formally agreed to the conditions contained therein. You joined, worked for a month, received your salary for the month, and stopped going without any intimation or abandoned your job as you yourself have admitted.

Subsequently, you have informed your employer that since you have resigned from your job. Therefore, yours is a case of resignation followed by unauthorized absence and not abandonment of service. For abandonment of service, the employer can dismiss the absconding employee on disciplinary grounds after following the procedures which can very well affect your future employment. Since yours is a case of resignation, maybe oral, your employer can insist upon the terms of exit relating to resignation. Legally, you are bound to fulfill the notice conditions for your voluntary exit.

Dear Kumar,

As per the Indian Contract Act, 1872, an appointment letter is a contract between two parties. However, a contract becomes legally enforceable when the other party acknowledges receipt of it. Therefore, upon receiving the email containing the appointment letter, did you acknowledge it? If yes, then the contract is legally enforceable. Nevertheless, you may validate my proposition with a lawyer who handles cases related to the Contract Act.

Your major defense is that you have just received the email containing the appointment letter and not the hard copy. Since you did not sign the duplicate copy of the appointment letter, the terms mentioned in it are not legally enforceable. Based on this assumption, you quit the employment. However, you did not create conditions conducive to your resignation. Therefore, your exit appears to be out of caprice.

You had a chance to object to being forced to work extra hours. Making you work beyond nine hours per day is illegal. Therefore, why did you not submit an application to restore your working hours to only eight hours? If your company had refused to oblige, it could have become grounds for resignation. Also, you would have deprived your company of raising any objection against your resignation.

Anyway, this is an afterthought. Now we cannot assess in what direction things will go. Therefore, let us wait and watch.

Thanks,

Dinesh Divekar
[Phone Number Removed For Privacy-Reasons]

It has no significance whether you signed or did not sign the appointment letter as an acceptance. Your joining the post and receiving a salary thereunder is equivalent to acceptance of the terms and conditions specified in your appointment letter. It is advisable to adhere to the terms of your appointment or, alternatively, discuss with your employer for a mutual settlement. In the absence of cooperation, your employer may take the matter to court, and you may be liable for the notice amount, mental trauma, legal expenses, and other hardships. It is wise for you to make a suitable decision.

Dear Prabhat,

The first paragraph of your post reads, "It has no meaning whether you signed or not signed in the appointment letter as an acceptance. But your joining in the post and received salary thereunder is equivalent to Acceptance of the Terms & Conditions assigned in your appointment letter."

Your statement is not consistent with the Indian Contract Act, 1872. Joining an organization cannot imply total acceptance of the terms and conditions of employment. Terms and conditions of employment must be communicated on the first day of joining, and the organization should have a copy of the acceptance. Mere communication without acknowledgment from the other party is an invalid contract under the provisions of the Contract Act.

Thanks,
Dinesh Divekar

Dear Kumar,

The question of signing and un-signing never arises in your case. Yet, don't you feel you are violating the moral ethics of employment? If the employer forces you to work within a month, how have you calculated and presumed that you worked more? Redo your homework and give a proper resignation. Even if for a day, you should adhere to the ethics of work and employment. Never do it in your future career.

Best of luck.

Dear Dinesh,

In Maharashtra, The Employment (Standing Orders) Act is applicable, not The Indian Contract Act.

He joined duty means he accepted the appointment letter; this is enough for both of them. It is advisable for him to approach the employer and amicably settle the issue.

Dear Mr. Shrikant Bhalekar,

The Indian Contract Act, 1872, supersedes the Industrial Standing Orders Act. Lawyers have successfully handled labor cases under the provisions of this act and have emerged victorious.

Additionally, I have addressed the assumption regarding Kumar's resignation in my initial response (Post Sl No 3). The entire post revolves around errors made by the original poster.

Thanks,

Dinesh Divekar