Understanding My 3-Month Notice Period: What Does "In Lieu of Notice" Really Mean?

I have a 3-month notice period and it states that I must serve that period or provide the equivalent amount to the Company "in lieu of notice period thereof at the discretion of management." Can you please explain the meaning of this line, which is written in double inverted commas in my appointment letter?

The meaning of the Notice Clause in your appointment orders is:

If you want to resign from your job, you have two options:

a) You have to inform the management in writing three months before the actual date of your resignation and continue to work during the entire 3 months.

b) You have to pay three months' salary and get yourself relieved formally if it is accepted by the management (instead of serving the notice period).

It implies that the management has the right to accept this alternative or reject it by asking you to work during the entire notice period of 3 months.

If the company gives upfront salary and takes employees out, does that also come under 'in lieu of' conditions?

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Paying an amount equivalent to three months' salary towards the notice period, in addition to the payable amount like salary for the period worked, incentives, reimbursements, leave pay, etc. (Full & Final settlement amount) and asking the employee if it is acceptable.

The management should also provide justification for the separation; otherwise, the employee may raise an objection.

Regards,
Kameswararao S

If the company asked me to leave the organization (similar to termination but not exactly the same) on the same day, do they have to pay one month's salary or not? The following clause is stated in the appointment letter:

"Your temporary employment may be terminated by us or by you with notice of one calendar month or payment in lieu of notice."

If they are not responding to emails regarding payment of that salary, what kind of action do I need to take against them?

Oral Termination and Notice Pay

What the above query intends to convey is that the person concerned was orally terminated by his employer and asked to leave the same day.

If the employer accepts the fact as described by the concerned person, no doubt that the employer has to pay him one month's salary in lieu of notice as the termination happens to be solely at the instance of the employer for reasons best known to himself. Perhaps there was no response from the employer to the mails of the concerned person requesting payment of notice salary as per the terms of the contract of employment. The absence of any allegation from the employer, either unauthorized absence or abandonment of service against the poster so far, are valid indicators of the alleged oral termination of the services of the poster in breach of the notice clause of the contract of employment by the employer.

Course of Redressal

The course of redressal depends upon the capacity of the position/job held by the poster. If he was a workman as defined under the Industrial Disputes Act, 1947, he can raise an industrial dispute under section 2-A(1) of the Act. Otherwise, he has to file a Civil Suit against his ex-employer for breach of the contract of employment and claim damages.

Thank you so much, sir, for the feedback. I was working there as an HR Executive - on roll. Yes, this was the verbal communication by the GM of the company, and now they are not responding to my emails regarding the pending salary for 24 days as I had resigned from my service on 15th June (my Manager asked for my resignation). The GM and Assistant HR Manager had already signed my resignation letter for the notice period (15th June to 14th July - attached file).

However, there was some argument related to the work, and my Manager was using almost abusive language about my upbringing. I replied asking him to stop, but he continued shouting at me and reported to the GM. The GM instructed me to leave the organization without hearing my side on 20th June, and I followed his decision and left. I inquired about my salary at that time, and he assured me he would take care of it. After sending three emails (in the third email, I included the GM's and MD's IDs), they responded and released my salary (till 20th June) and the Experience letter. Despite sending two more reminders, I did not receive any reply from their side regarding the remaining salary.

I am seeking my salary until 14th July as per my notice period and as mentioned in the Appointment Letter (attached file). Tomorrow, I will send the sixth reminder. If they do not respond or perhaps deny giving the salary, what steps should I take? I have already included my Managing Director's email ID in the emails after the second reminder, but she is also not responding. Given their strong contacts, Legal Adviser, and good knowledge of the law, can they create problems for me that may affect my career, especially since I am currently unemployed and an ordinary individual? This is the first time such a situation has occurred in my career, and I am unsure how to help myself. Please guide.