Employee Wants to Withdraw Resignation During PSU Notice Period – Is It Possible?

kallamohan
Hello Team,

I have a situation where an employee resigned from PSU - bank a month ago and is currently serving a 3-month notice period. However, she has now decided to stay back and withdraw her resignation. Is she allowed to do that?
umakanthan53
Employment Contracts and Resignation

Basically, employment is at will only since it is a contract between two parties. Therefore, the duration of the contract would be a matter of consensus between the parties, subject to the provisions of any law in force or general practices in vogue. However, there may arise a situation for the foreclosure of the contract at the option of either party. "Resignation" is the name of the process when the foreclosure is formally initiated by the employee, and "discharge simpliciter" when done by the employer. But a certain amount of time is required by the other to make alternative arrangements to avoid the inconvenience caused by the foreclosure decision. It is normally predetermined in the notice clause of the contract.

However, resignation, being only a unilateral move by the employee on their own, if it is effective from a future date, they have the liberty to withdraw it anytime before they are relieved, just like the employer has the freedom to rescind the order of discharge effective from a future date.

Restrictions on Withdrawal of Resignation

Sometimes, in consideration of the core activity of the establishment and the importance of the position held by the employee, in public interest as well as in view of the possibility of completion of the alternative arrangement made by the employer, the right to withdraw resignation already submitted by the employee can be restricted with a special clause of approval by the employer. In such a case, once the resignation is formally accepted by the employer, it can be withdrawn only if it is permitted by the employer. Here, I would like to highlight that public interest doesn't cover the interest of the resigning employee but the interest of their substitute selected from elsewhere who might be already on the move, and in such a situation, the employer's refusal to accept the withdrawal of the resignation could be lawful and reasonable as well.

Hence, you have to take a decision accordingly.
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