Employee Refuses Notice Period and Threatens Legal Action Over Salary – Are We at Fault?

Dear senior, please help me in this regard. One of our employees, who works in a different state, was intimated about her employment confirmation via a normal email stating that she is confirmed in the company from a certain date. She has received all benefits like PF, ESI, etc. As per her appointment, she was supposed to serve a 2-month notice period after confirmation. However, she has now resigned but is clearly denying to serve the 2-month notice period. She claims that since she did not receive a hard copy, she is not confirmed.

In our company, there is a policy that on the day an employee submits their resignation, the salary for that month and the next month goes for full and final settlement (FNF). On the last working day, after receiving clearance, we pay the entire salary to the employee without holding it for another 30 or 45 days.

The issue at hand is that she is refusing to serve the notice period and threatening to take legal action if we do not pay her the salary for the month she resigned. I would like to know if we are at fault as an employer. Our management is very polite and does not unnecessarily trouble anyone, but in this case, I feel the employee is taking advantage of us.

Please suggest what we should do.

Eligibility for Salary and Communication Methods

Your query is not complete, sir. The first thing you should note is that any employee is eligible for salary for their working period, undoubtedly.

Secondly, email information is sufficient for any communication, including postings, promotions, transfers, or removal orders. They cannot demand a hard copy if your version is accurate.

Salary Payment and Internal Processes

Now, regarding salary payment, advance vouchers, final settlement, etc., these are in no way the concern of employees. It is purely the internal structure of paying salaries. An employee has no role in it. If their working period is confirmed, they should be paid for it.

Dragging them to court for not following your resignation conditions is clearly a waste of time. Please proceed, sir.

Thank you, sir, for the suggestion. We have a policy stating that an employee's salary will entirely go towards FnF from the month he or she resigns. For example, if the notice period is two months and the employee resigns in May, the salaries for May and June will go towards FnF. On the last working day, the employee will receive their full salary. For instance, if the last working day is June 30th because the employee resigned on April 30th.

The situation is the same for her, and she is threatening to take the matter to the labor court. Additionally, if she does not serve the notice period, we have the right to withhold her salary as recovery for the shortfall in the notice period for one month. Please correct us if we are legally mistaken.

Salary Policy and Legal Considerations

The policy of holding salary for two months is entirely the company's policy and is not supported by any law of the land. If the employee has given proper notice of two months, he/she is entitled to one month's salary in the usual course, and the second month's salary can be paid with FnF. It is surprising to note that you do not consider the hardships of the employee for their day-to-day expenditures required to feed and run the family.

Confirmation and Evidence

Regarding the point of confirmation, you are correct that if the mail has been sent by the appropriate authority, it serves as sufficient evidence of confirmation. Arguments about a hard copy not being relevant.

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

Dear Friend,

You have already confessed that the fault lies on your part. It is better to pay and leave the burden apart. Now it is a good lesson to rectify the missing link.

Whether the email communicated to the employee has all the terms and conditions that would be applicable to one upon his confirmation of service?

You paid one month's salary and asked the employee to complete the exit procedure for which her payment is being kept on hold. You can follow this, seeing the condition.