What Happens If I Skip the Notice Period? Seeking Advice on Legal Consequences

Hi All, I joined a company on 11th Jan 2017 and sent a resignation letter on 11th Jan 2018. In my appointment letter, nowhere was it written that I need to serve a notice period. In reply to my resignation letter, my HR sent an email to serve a 1-month notice period or pay back one month's salary. I have already received a new job offer and want to join immediately without serving the notice period. I would like to know what legal action the company can take if I do not serve the notice period. Below are details from my appointment letter. Can you please help me understand if there is anything that states I must serve a notice period?

Details from the Appointment Letter

"You shall, in the discharge of your functions, observe and comply with all the resolutions, regulations, and directions as may from time to time be made or given to you. You will observe and follow all statutory laws, notifications, and rules applicable to the functions assigned to you. You will keep yourself well-informed in these matters. Without prejudice to what is stated herein above, the company shall be entitled in the event of your being guilty of misconduct, inattention, negligence in the discharge of your duties, or in the conduct of the company's business, or any misdemeanor likely to affect the company's reputation, or any breach of the terms and conditions herein, to terminate your services after giving 24 hours' notice. The enclosed conditions of employment, as they are amended from time to time, form an integral part of this contract of employment."

Please help me.

Notice Period and Termination

If no notice period was prescribed or agreed upon between the employer and employee, then unilateral insistence on a notice period would be illegal. Termination of an employee should be done after following due process and observing natural justice. Otherwise, it can be challenged in law. Even unilateral changes in job conditions are questionable, as the employer and employee have accepted a set of terms and conditions while employing the person. Changes in terms and conditions should be mutually acceptable. If based in the USA, take local advocate advice on specific matters by showing all related papers.

Notice Period and Employment Obligations

Though it is not clearly mentioned as per clause 8 of the appointment order, you are bound to follow any regulation, resolution, or direction as may be issued from time to time. The direction to serve a notice period of one month issued now is a mandate that is also binding on you. If you have a standing order and the standing order contains a rule relating to the notice period, then you should follow it even if the appointment order is silent about the notice period. Only for a defense, you can say that your appointment order does not contain a clause of a one-month notice period. In case you were not having any managerial powers in the establishment, you can also say that your appointment, having been regulated by statutes, the basic law governing conditions of employment, that is, the Industrial Disputes Act, does not insist an employee to serve notice, though it is mandatory for an employer to give at least one month's notice to terminate an employee.

Considerations Before Leaving an Employer

Now coming to the human resource side of the issue, I would say that you have every right to choose your employer, and nobody compels you to be with one employer. But while leaving an employer, you should just go backward and think that you were in need of employment one year back, and at that point in time, this (present) employer offered you employment, and that was okay for you. With this employment, you managed everything until you got this new offer. Now you have a better offer with you and, therefore, would like to ignore the present employer and want to leave immediately. Yes, legally you can go, no problem. But after joining the new employment, they will send your details to the previous employer for verification. At that time, against one question, i.e., whether the employee is eligible for rehire, if the answer is NO, what will be your career growth? Another question often asked in such background verification is "whether relieving formalities done or not." If the HR comments on that, that will again become a hurdle for you. Again, you cannot demand a service certificate with exemplary or very good performance. Now think whether you would like to go legal or wait for one month. I would also like to say that if you ask the employer who has given you an offer one month's time to join, saying that there are a few pending tasks to be done and I cannot come out just like that without completing my tasks, the employer will be happy to give time to you because it will give a message that you are a responsible person who will not just leave without proper handing over and completing the tasks that you give.

Dear Friend,

There is nothing to worry about as there is no notice period clause in your appointment letter, which is a good sign. In the absence of the above clause, your past employer cannot take any action. The current directive from HR regarding serving a notice period is merely a counteraction. Ignore the HR's instructions. Instead, you should communicate to HR that you are not obligated to serve a notice period. Any further communication on this matter will be considered as harassment.

Thank you.

Dear Madhu,

I seek some clarifications with your vast knowledge and experience.

"Though it is not clearly mentioned as per clause 8 of the appointment order, you are bound to follow any regulation, resolution, or direction as may be issued from time to time. The direction to serve the notice period of one month issued now is a mandate that is also binding on you."

I understand that the job offer and acceptance is a contract based on the appointment order. Any order altering the fundamental characteristics of the job cannot be unilateral.

Smooth Transition in Employment

Scoring a goal in the first session does not mean that the game is over. The wiser one defends until the final whistle blows. The members have discussed the matter from different angles and proposed possible solutions.

You may not be bound by the 'Notice Period' initially, putting you in a win-win position if your new employer does not request a relieving letter. Just imagine how you would manage if your new employer demands a relieving letter for joining.

There should always be a smooth entry and exit for better career prospects. Therefore, one should be judicious in deciding on a course of action by addressing the situation to make it more favorable.

It has been frequently observed that the department responsible for entry and exit does not always act in accordance with policy but rather as prompted, which is quite peculiar behavior. In this particular situation, our learned colleagues interpreted the query and provided suitable advice to align with the time requirements.

Professional Conduct and Notice Period

Presuming that you are not a workman but working in some responsible executive position, my reactions are as follows:

1. We are living in a civil society and follow an unwritten norm of reasonable decency. Although it is nowhere written in the law books that you should respect elders or speak politely, we still do it. It is nowhere in the law that you should say good morning to your boss, but you still do.

2. Although there is no mention of a notice period in your letter, what about the professional courtesy and principles of natural justice? If nothing is mentioned regarding notice in the letter of appointment, does it imply that you will behave irresponsibly?

3. As a manager, you are expected to ensure that the company's work does not suffer. Therefore, you are required to give a reasonable notice, say 7/10/15/30 days, to your employer so that the work does not suffer, and alternate arrangements can be made.

4. It is truly disheartening to notice that you are seeking excuses to justify your actions and putting HR on the wrong side.

5. You need to serve the notice period.

Warm Regards,
Bharat Gera
HR Consultant
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