Feeling Trapped: Can My Employer Really Stop Me from Resigning and Threaten Legal Action?

I have been employed by a startup since April 2019. Before I joined, they called me over the phone and asked how long I was willing to stay with the company. I told them 2 years and then we would see. They informed me that I should commit to a minimum of 3 years. At that time, I really needed the job and did not want to lose it at any cost. In the offer letter, they included a point stating, "During your personal interview, you committed to the company for a period of 3 years until the end of April 2022." Another point mentioned, "You shall remain on contract until October 2019." However, apart from these two points, there was no other mention of the commitment.

Recently, due to personal reasons, I submitted my resignation on April 28th, 2021. The employer declined my resignation, stating that I had committed to the company and could not be released from my duties. During a video call, the employer insisted that a reason must be provided for leaving. I explained that I had a genuine personal reason, but he was not convinced. He mentioned the possibility of legal action if I insisted on quitting, implying that he would harm my career legally. I was not provided with any rules or regulations after starting the job, and apart from the offer letter, I have not signed any other documents.

I am uncertain about what to do next. The employer's threat of legal action has me worried about the impact on my career. Will such legal action affect my future job prospects? I am currently feeling depressed and under pressure. I seek guidance on how to proceed. Your timely response will be greatly appreciated.

Notice Period and Personal Commitment

The personal commitment made during the interview to serve the company for a period of 3 years until the end of April 2022 is not in conformity with the notice period clause, which states that it is imperative to provide a notice period of not less than 60 days. The notice period clause is a standard clause, and its importance and applicability are not diminished by personal commitment. If there is no other communication to the contrary, there is no need to worry.

Additionally, there cannot be any forced labor or beggary, as Article 23 of the Constitution expressly prohibits it. Therefore, there is no need to worry; you can point out the constitutional provision and, in turn, warn the employer of potential penal consequences if they pursue any litigious actions in this matter.

Understanding Employer Threats and Employee Rights

To put it simply, the threat posed by the employer to drag you into litigation need not worry you much, as it amounts to forced labor or slavery. Our Constitution protects you from forced labor. The personal commitment made by you during the interview to serve until April 2022 does not carry much importance as it conflicts with the notice period clause.

Thank you so much, KK! HRR. It was very helpful.

Next Steps After Resignation Declined

So, what do you suggest now? What should be my next move since he already replied to my email saying it's declined? What should be my next action?

Understanding Employment Obligations

The compulsion to serve for a period exists when a signed agreement is in place. In the absence of any signed document, nobody can force someone to work for a certain period.

Your service is bound by the terms of your appointment letter. If there is no condition requiring you to work for a minimum of 3 years, you are still obligated to serve a notice period or work until the completion of a 60-day notice period.

The company may attempt to pressure you, but such a case would likely not stand in court. You could argue that your verbal commitment to work for 3 years was based on certain promises made by the company, such as a 30% annual salary increase and other benefits, which have not materialized.

Regards, Prabhat

[Phone Number Removed For Privacy-Reasons]

Dear Minerva,

Under Indian law, a service bond or agreement to serve a specified period is valid only if the company has provided you with training for a particular skill set. Otherwise, under Section 27 of the Indian Contract Act, any agreement restraining trade or profession is illegal.

There have been numerous court cases that have clearly established that no one can be compelled to work for a company, business, or employer against their wishes, and that any such contract is invalid.

The only scenario where such a contract is valid is when training has been provided. Even in this case, specific performance cannot be enforced (you cannot be asked to continue working beyond a reasonable notice period). The company's recourse would be to claim compensation equivalent to the amount spent on the specific training, not on-the-job training for which the company paid money. The compensation would be reduced proportionately based on the period served.

Therefore, there are limited options for the company in such situations. However, if they decide to pursue legal action, keep in mind that you may incur legal fees to contest it.

If the manager is not accepting your resignation despite you adhering to your notice period, send the resignation via registered post with acknowledgment due. This will help establish that you have sent your resignation, and the acknowledgment is proof of receipt.

The worst that may happen is that you will not get an experience letter from this company. Still, if you approach this with the help of a labor lawyer, you can support your stand and get the same. If the company has spent money on specialized training, you can offer compensation for the same in lieu.

Hope this helps.