Is It Fair to Withhold Salary for Skipping the Notice Period? Seeking Legal Advice

Notice Period Concern

I have a concern regarding the notice period. One of my friends was working in the accounts department for a startup. He joined the company in April 2018 and left the company in September 2018. He had properly emailed his resignation to the MD, stating that he was ready to serve his notice of one month if the company wanted. The same email was accepted the next day. However, due to some reason, my friend didn't serve the notice. Now, the MD is denying his salary because he didn't serve the notice. Is it right on their part to hold his salary? If they really wanted the notice period to be served, they would have shared at least one warning email. So, I need to know if they can hold the salary and if not, then what legal action my friend can take.

Regards,
Nidhi Singh

Hi Nidhi, for building one's sound career, one of the many essential ingredients is to keep the career graph 'unblemished'. Viewing from this angle, why would you want to have a black mark at the early stages of your career? Setting aside the legality of withholding the salary for the notice period not served, what options would you have to claim it? Would you consider going to court? Think of the repercussions of exercising such an option. The fact remains that you didn't serve the notice period; hence, you have to come to terms with it, considering it foregone in lieu of the notice period.

Okay, now, have you received your 'relieving/experience letter'? There's a crucial point to consider how important it is to support your career.

Thank you.

Respected Sir,

Thank you for your valuable response. My friend has not yet received his experience/relieving letters. Additionally, the immediate relieving was on verbal terms. I agree he should have mentioned the same in his mail. Could you please provide the best suggestion you have in this case? Your assistance will be greatly appreciated.

Regards,
Nidhi Singh

Service Duration and Employer's Request

How many years of service did your friend have? What if the present employer insists that he should produce the Release Letter/Experience Certificate (RL/EC)? At this juncture, it seems unlikely that he will receive his salary due to a breach of agreement (I believe his appointment terms and conditions prescribe a certain notice period) on his part. Even if he seeks court intervention, the possibility of winning is remote.

Amicable Settlement Suggestion

If he wishes to settle this amicably, he could approach the competent person with a frank request to pardon his hasty exit and offer to surrender a month's salary, provided they issue him the RL/EC. Caution is advised, as he might need to hide the details of his current employer for obvious reasons. This is not a foolproof solution but only my suggestion; you may decide what is necessary depending on the circumstances that unfold in the future.

Hi Nidhi, Your friend worked from April 18 to September 18. Did he receive an appointment letter? Was he on probation? Was there any discussion or clause regarding the notice period? In good faith, he offered to serve his one-month notice period, but he failed to fulfill his commitment for reasons best known to him. You mentioned his immediate relieving was on a verbal basis. In the above circumstances, does the company have the right to withhold his one month's salary in lieu of notice? Thank you.

Regards,
R. H. Kavarana
HR Manager
Mumbai