Employer Defaulted on Severance Pay: Can I Cancel My NDA and Other Contract Clauses?

My employer has terminated my employment and agreed to pay a 2-month notice period. He has paid for one month in May but has since defaulted on the payment and the terms of the appointment contract.

Termination of Appointment Contract

Can I cite this reason to argue that the appointment contract is now severed or canceled due to the employer's non-performance by defaulting on the severance package? Furthermore, do all other clauses applicable to me, such as the NDA clauses in the appointment order, stand canceled from my end? Can I proceed with this action?

Deepak, this is a clear-cut case of termination from the employer's side. Your employer has agreed to a severance pay of 2 months, and presumably, you agreed to the terms of it. Please go through the severance letter that was issued to you, as it always contains the terms of your pay. If not, where have you agreed to the terms? It is not very clear from your question.

Yes, your appointment terms stand canceled due to any reason that you may have agreed with your employer. If your employer is defaulting on the payment release, please follow up extensively; that's the best you can do. There are still many unprofessional practices prevalent, which is unbelievable. If you have the resources to go further, please consider initiating legal action.

Best wishes with this matter, and thank you.

With the unilateral termination of the employment contract at the behest of the employer and the partial payment of the notice pay, your contract has already come to an irrevocable end, along with any obligations associated with it.

Contractual Obligations and Breach

When the employer has failed to fully perform its part of the contract, equity demands that the employer cannot expect the other party to fulfill its obligations. According to the Contract Act of 1872, part performance of the contract condition does not entitle one to demand performance from the other party, especially when nothing is being said about the fulfillment of the remaining part. You have a cause of action against the employer in case you are interested. However, it would be better to inform the employer that they have breached the contract, and so the contractual obligations have come to an end.