Can I Legally Challenge My Former Employer's Demand for Compensation After Early Release?

I was working with an organization in Mumbai, India from 20 March 2017. Due to a lot of internal politics and an unstructured, unorganized style of work, I decided to move on. My letter of employment stated a 3-month notice period, but after discussing with my reporting manager, I received an early release in one month. During that period, I completed my handover process and even received my experience/relieving letter.

Now, after a month of joining elsewhere, they have sent me a notice (on company letterhead) stating I need to pay them compensation of 2 months' salary as I didn't serve the full 3 months. I believe it is wrongful of them to send me such notice and harass me. They tried piling new projects on me during my notice period and made me slog at work. The organization lacked so much culture that I quit without waiting for a month and claiming my annual bonus despite my performance.

I need urgent advice on whether I am in a position to file a case against the employer. Kindly help me with the procedures.

Thanking you in advance

Please reproduce the relieving letter (cover up names, etc.). Based on the information in the relieving letter, people will be able to advise you better. There is no point in wasting time and money filing a counter case against your ex-company.

Enclosed is the experience letter along with the notice received from the organization.

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I have reviewed the text and made the necessary corrections for spelling, grammar, and punctuation errors. The paragraph formatting has been adjusted to ensure clarity and readability.

"We would like to inform you that clause 1.7.1 of the Employment Agreement dated 20th March 2017 explicitly states that you shall inform the Company about your resignation by giving 3 months' notice, or else you shall be liable to pay 3 months' salary in lieu of the notice.

There is a grey area in what you are claiming in your post and what the company has written in the agreement as shown above. Facts in your favor include a good experience letter. Legally, the old company has the right to demand 2 months' notice pay from you. Did your reporting manager waive the 2-month notice period while accepting the resignation? What did you write in your resignation letter? Did you mention that you have already accepted another job? You will need to consult a local labor advocate and seek advice as the company is within its rights to demand notice period pay from you. Proceed carefully and tactfully in the matter with due legal advice."

Dear Afrin,

Though in principle, the company is right as stated by senior friend Nathrao, the company representative has given you the experience letter stating the date of relieving. Have all authenticity in your proofs while approaching a local advocate, like a waiver of the notice period, and further communication if any on the waiver of notice period/pay.

Where is the resignation acceptance letter? If the acceptance letter states that you are relieved on the date mentioned in your experience letter, then there is nothing to worry about.

Dear @Kshashikumar Nair,

The resignation acceptance letter states to wrap up by 20th Dec. If you wish to leave earlier, please speak to the CEO.

Thank you.

Dear Mr. Nath Rao, Your apprehension in the matter is justified based on the documents provided. I would like to engage in an academic discussion on certain points that have come to mind.

Employee Obligation to Sign Employment Agreement

Don't you think that the employee was obligated to sign the 'Employment Agreement' until 20.12.2017, before being relieved from service at the closing hour of 20.12.2017? The demand notice provided by the concerned party did not have a date. Whether the demand notice was issued before or after 20.12.2017 (the date of relieving) matters significantly. The termination of an employee results in the end of the employer-employee relationship.

Thank you.

Both sides have to follow the agreement fully. If someone takes shortcuts or violates the agreement, disputes can arise due to differing interpretations. There is always a grey area in all disputes, with full facts often unknown to us. Therefore, advice is given based on the facts brought to our notice, and it is always advisable to seek advice from a local lawyer before taking action.

The experience certificate was issued to me on 20th December, the date of my exit. The demand notice was sent to me on 15th January. If my exit wasn't accepted, then why did they issue a good experience/relieving letter to me.

Hi,

Further to the comments mentioned above, you could send them a covering note and the cheque with your notice pay amount.

Understanding the Issuance of Relieving Letters (RL)

1. RL is issued by every company after the full and final settlement is calculated and finalized, whether the employee has to pay or the company has to pay.

2. If the employee has to pay the company, then in that case, RL is issued after the employee has made the payment to the company.

3. Hence, the recovery notice of the company has no standing; it is misplaced.

4. The company can only claim when it admits an error of calculation has taken place; hence, the notice for recovery. In this case, the company has nowhere mentioned that it was an error on the part of the company. On the other hand, the company is blaming the employee for the violation of the contract of employment.

5. Companies cannot legally stop anyone from taking up employment after leaving Company A and joining Company B.

6. In my opinion, the employee should not pay a single penny to the company.

Warm Regards,

Bharat Gera
HR Consultant
[Phone Number Removed For Privacy-Reasons]

Well, first of all, you sent a reply through email stating that the notice period was waived off verbally and a relieving letter was given on 20 Dec 17 after completing the assigned task. The issue of notice period payment after one month of relieving is not fair and just, as the same was never conveyed earlier.

Please consider the issue settled. Thank you in advance.