Confused About Notice Period After Contract Ends: Do I Need to Serve It?

Hi, I am working as a contract employee with one of the companies in India. My contract states that I need to work a minimum of 12 months, and this October will mark the completion of those 12 months. However, when I inquired with my employer about resigning, they informed me that I can only resign but will have to serve a two-month notice period after the minimum contract period (which extends beyond October 2022). The contract also specifies that if I resign before completing the 12 months, I will have to pay them 1 lakh rupees. I am unsure about what the right course of action is at this juncture. Am I truly required to serve a notice period after completing 12 months? Should I tender my notice now (in August 2022) to be released during my contract period and be free by this October (2022)? Please advise. I can provide the contract letter if necessary.

Thanks

Since it is mentioned that you will have to serve a minimum period of 12 months, it means the appointment will not automatically come to an end after the 12-month period is over. So, a notice period has to be served. This view requires confirmation after seeing the contract letter.

Hi, Please follow the proper separation process and provide the notice period as required. Please refer to the separation clause in your contract of appointment. If a 2-month notice is not mentioned in the contract, then you are not under any obligation to serve a 2-month notice.

Once the fixed term for which you were appointed is over, the contract stands terminated automatically. If the contract is set to end in October, and you are willing to continue in service until then, why did you mention resignation? You should have simply declined the offer to renew the contract post-October. Now, do not bring up resignation and complete the original period. Once it is over, just leave. When you begin the handover process, they may propose renewing the contract, which you can turn down at that time.

Hi all, thank you for your responses. I am attaching my contract that mentions notice and resignation for your reference. Please let me know once again.

The document is not legally valid since it is one-sided. Even the cost of training (Rs 1 lakh) is mentioned beforehand.

No issue. The contract ends automatically, and after that, there will be no employee-employer relationship.

If you are leaving the company before completing two months, the notice period clause will naturally be applicable. Moreover, the bond amount (though it is illegal because the training cost is mentioned beforehand) will be effective. The employer cannot insist on both serving the notice period and paying the bond amount of Rs 1 lakh. The employer's demand that you serve a two-month notice period after the contract period has ended is incorrect.