Is It Fair for a Company to Demand Notice Pay After Terminating an Employee for Absence?

Notice Period Policy and Employee Resignation

The organization's notice period policy is three months. The employee submitted a proper resignation through the company tool and also via email, clearly stating that they will serve for 1.5 months. They also offered to pay compensation in writing for not serving the full notice period of three months.

The employee worked for 1.5 months and, before leaving, initiated formal communication about their last working day.

The supervisor did not accept the resignation but responded that the employee needs to serve the full three months. Since the employee stopped coming after 1.5 months, the supervisor initiated a disciplinary notice due to absence.

Eventually, the organization terminated the employee's contract on disciplinary grounds (due to absence) and also demanded notice period pay.

The relieving letter shared with the employee states termination, and the reason is absence. The employee is also being asked to compensate for the notice period pay for the remaining 1.5 months.

Legal Considerations

Is the organization acting rightfully?

Can the employee take legal action? The location is Kolkata, India.

It seems like a complex situation. While the organization has a right to enforce its notice period policy, the employee has also made an effort to comply by offering payment in lieu of the remaining 1.5 months.

The termination of the employee on the grounds of absence, after they've officially communicated their resignation, seems to be a contentious issue.

In India, under the provisions of the Industrial Disputes Act, 1947, an employee can challenge the termination. Here's what the employee can do:

1. Consult with a labor law advocate: The first step would be to consult with a labor law advocate to understand the best course of action. The advocate can guide on whether to approach the Labor Court or Industrial Tribunal based on the nature of employment and the organization.
2. File a case: If advised by the advocate, the employee can file a case under the Unfair Labor Practice or wrongful termination. The employee will need to produce proof of resignation and communication regarding paying for the un-served notice period.
3. Wait for the hearing: Once the case is filed, wait for the hearing. In court, if the employee can prove that they've followed the proper procedure for resignation and demonstrated a willingness to comply with the company's policy, there's a chance the court may rule in their favor.

However, legal recourse should be the last resort. Before this, it's advisable to again communicate with the organization, possibly through an advocate, to negotiate a resolution.

Remember, this advice is based on the general provisions of the labor laws in India. The specifics can change depending on the detailed employment contract, company policy, and any other agreements between the employee and employer.