Contract Renewal Delays and Salary Revision: Should I Serve Notice or Raise Concerns?

Contract Renewal Delay and Salary Revision

My contract renewal was due in February 2020, and HR has not yet sent the renewed contract to me; it has been three months now. However, I have received my salary for February, March, and April 2020 as per the previous contract details. HR is simply delaying the letter as my salary is going to be revised; the performance rating and percentage hike have already been declared. After following up, she is saying, "will revert shortly, and don't worry we will give you the arrears."

Questions Regarding Notice Period and Final Settlement

If I resign in such a case, am I obliged to serve the notice period? Should I request HR to complete the full and final settlement (FnF) with reference to the revised salary? Can I raise a red flag against the HR person who is delaying the letter?

Dear Member,

By virtue of accepting the salary after completing the period of the contract, it is deemed that your contract has been renewed with a retrospective date. You have received an email communication regarding this matter. However, you have not provided specific details about the terms and conditions of the contract. Additionally, you have not explained the reason for receiving and accepting the salary for three months. It would be fair to comply with the terms of the contract for separation.

Thank you.

Implications of Contract Renewal and Resignation

I fully agree with the opinion of Srinath. If the contract of employment for a Fixed-Term Contract (FTC) employee is not renewed by the employer, yet the salary continues to be paid at the existing rate, it is implied that the contract stands renewed retrospectively. The statement from the poster that the performance rating and the percentage of the hike are already declared, along with the assurance of payment of arrears quoting HR, confirms the implied renewal of the contract.

If the poster intends to quit at this juncture, they must serve the notice period or buy it out as per the exit clause of the contract of employment. However, there is a possibility of a hidden problem in this scenario. In case the employer does not want to accept the resignation, they may do so under the pretext of enhancing the notice period. If the poster receives the arrears, it signifies the acceptance of the renewal of the contract in toto. They cannot accept one part of the contract and at the same time reject the other part, as it amounts to approbation and reprobation. Therefore, my suggestion would be to disclose the intention to resign only after the formal renewal of the contract.