Facing Legal Threats for Skipping Notice Period – How Should I Respond?

I was an employee of a private bank three months ago. My team leader forced me to resign, and I did so. I found another opportunity immediately and joined a new company. The bank has now marked me as absconded because I did not serve the notice period. They have emailed me, stating that I need to pay 92,000 as notice period recovery; otherwise, they will take legal action against me. Could someone please advise me on what I should do?

Do you have any evidence to show that you were forced to resign? Then send that email to the MD of the bank with a copy marked to the appropriate authority (Labour Department).

Refer to the Standing Orders

Also, refer to the Standing Orders/Service manual of the bank and see if there is any notice period. As per the Industrial Disputes Act, in respect of employees coming under the purview of the Act, there is no such notice to be given by an employee, though an employer is under an obligation to give notice of one month or three months, as the case may be, depending on the number of employees employed in the company (bank).

Sir, they were tricky. My manager verbally told me to resign, and she has created mental pressure on me every day as I was not performing well.

I cannot sit at home without a job, and at that time, one company approached me to join them. They suggested I be absconded as they do not require any release letter. For the last two months, I have been working there.

Sir, how can I get rid of the situation? Kindly help me. 

Steps to Address Employment Issues

First, write to the Head of HR and the Managing Director. If the response is not positive, approach the labor department. If the bank is operating outside the state, the Assistant Labor Commissioner (Central) will be the appropriate authority; otherwise, the Officer of the State Labor Department will be the concerned officer to handle such cases. The issue will only be taken up for a hearing when the Officer is satisfied that you fall under the purview of the ID Act.

Inform your present employer of the issue and involve them so that taking action against a previous employer does not jeopardize your current employer's stance towards you.

In the complaint, specify the harassment you experienced from the reporting officer.

All you can do is amicably settle to waive off the notice period with your previous employer and have them issue you a relieving letter and a positive Background Verification.

Please note, without a proper relieving letter and BGV, it will be difficult for you to move forward in your career, especially with banks and MNCs.

If there are any previous complaints you have made to the HR/Skip Manager about the said leader, you may refer to them for the decision to be in your favor (emails/chats, etc).

Legal battles are not worth it for 92,000 given how much time and money would be spent.

Also, "They suggested me to be absconded as they do not need any release letter." If your new organization told you this, it looks sketchy, as normally established setups with HR teams don't make such commitments.

Take care.

Can you please tell me what kind of legal action they may take against me if I am unable to pay the amount of $92,000?

I don't think that any employer, like a bank, will initiate legal action for the recovery of notice pay. However, out of fear of background verification, employees often choose not to proceed with a legal battle and end up paying the amount. If one decides to defend themselves, the employer will likely lose because, under the ID Act (which is not intended for employees with managerial responsibilities), there is no provision stating that an employee must serve notice.

Certainly, if the standing orders require such notice, it would be enforceable. Nevertheless, to successfully recover notice pay, there must be evidence demonstrating that the company suffered a loss due to the employee's absence.

Can I just ignore the matter if I do not need any kind of relieving letter from the company?

They did not pay any amount for my training or any other investments in me. I worked there for just two months.

Sir, they have already sent me two letters in August and the third one yesterday, asking me to pay within 5 days. The content of the previous two letters in August was the same.

Local Bank or Money Lenders?

Is this a local bank, like money lenders? No reputed private bank will stand behind a dishonest employee like this. Do they have any standing orders or HR manual stating that employees should provide notice?

Forced Resignation and Legal Implications

I was informed to leave, and I suggest that the manager should compensate for any losses incurred by the bank. It is accurate that the manager verbally requested my resignation, but I must emphasize that it was a forced resignation. The manager was responsible for pressuring me to resign, so I will not be providing any notice pay. Do not make any payments. Let them understand that you are prepared to handle this legally.

Sir, it was IDFC FIRST BANK. I was in the CASA department. They have not spent any money on any kind of training, nor have they provided me with a laptop, phone, or anything else. There is no induction training either. Will they file a case against me? A police complaint? Anything like that? I am afraid, sir.

For violation of the employment contract, they will not file any police complaint. If they do, counter it by saying that the manager had asked you to resign and there was pressure from his side to resign, and you did it in good faith without knowing that the bank would use it to make a profit. There is no need to prove that you were harassed because this practice is known to everyone in the industry. Take that stand.

Legal action considerations

Legal action, anyway, will depend upon the bank's policies evidenced by the appointment letter or standing orders. You can approach a good labor lawyer and discuss the issue so that you can legally fight.