Employment Policy Dilemma: Should We Enforce Notice Period for New Hires Who Quit Early?

Hi Seniors,

I am keen to know if an employee falls under our employment policy after joining the company, in the case where the employee has resigned before completing one month with the company without serving any notice. Should we recover our company's notice?

If a particular policy of any organization relating to statutory or contractual service conditions of its employees within the spectrum of their tenure from entry to exit does not get reflected in the contract of employment, the employer cannot legally insist on it. Particularly, as far as I know, the unilateral termination of employment by resignation does not have any statutory restrictions. Therefore, unless there is a specific clause in the orders of appointment or service regulations providing for a certain notice period in the event of resignation or a buy-out option in lieu thereof, the employer cannot effect any recovery other than treating such an employee as an absconder.

I really appreciate your words, sir. However, we have a specific clause in the appointment letter that clearly relates to the notice period or payment in lieu of notice. In this case, what can I do, sir?

Dear Gaurav, In an employment contract, the submission of a resignation letter by the employee may be the starting point of the unilateral termination of the contract from his/her end. However, the formal acceptance of the resignation by the employer, subject to the conditions of notice imposed on the part of the employee as mentioned in the contract, is the process that actually sets the resignation into motion. If the notice condition provides for the option of serving the notice period in its entirety or partial/complete buy-out by the employee, he/she should fulfill it by electing any one according to his necessity. However, the employer has the discretion to accept the buy-out option of the employee, modify it, or reject it based on the exigencies of work or waive it totally. Only then does the process get completed with the formal relief of the employee from the organization.

On the contrary, if the employee simply quits the organization on his own soon after the submission of his resignation without waiting for the formal acceptance by the employer or after intimation to fulfill the notice condition in a particular manner, it amounts to abandonment of service, which is misconduct to be dealt with severely by the employer resulting in the employee's dismissal, adversely affecting his future employment elsewhere.

Your post does not specifically mention the response of the employer after the letter of resignation. The possible inference, therefore, could be that the employee simply walked away after submitting his/her resignation. In such a situation, the employee has voluntarily subjected himself/herself to disciplinary action because technically he/she remains in the employment of the organization. Therefore, the employer can ask him to pay the notice salary as fixed in the contract of employment or terminate his services after a formal disciplinary proceeding.

If the employee was formally relieved immediately after his resignation, it amounts to a tacit waiver of the notice condition and acceptance of the resignation. In this case, the employer cannot pursue the employee now.

Kindly let me know if you need any further clarification. Thank you.

Sir, the employee left the office without knowing the acceptance of his resignation from the concerned person. He simply submitted his resignation and left the office in the evening. The following day, we learned about the situation when the employee did not show up for work.

In this case, should we adhere to our employment conditions?