How Should I Handle HR's Claim About My Notice Period After Receiving a Release Letter?

As per my appointment letter, I am supposed to serve three months' notice. I submitted my resignation on the 2nd of February 2023, stating my last working day as the 28th of February 2023. I received a release letter duly signed by the company's authorized signatory, dated the 26th of February 2023, stating: "My resignation has been accepted; however, it is subject to the completion of clearance formalities and F&F Settlement with the company. You will be relieved from duties with effect from February 26, 2023, at the close of working hours."

After two days, i.e., on the 28th of February 2023, I received an amount in my bank close to my salary. Hence, it can be assumed to be an F&F Settlement since this amount is being disbursed after the release letter. Now suddenly, in the month of September 2023, my HR is claiming that I have not served three months' notice. I am being asked to pay an amount to compensate, or else they will pursue legal action. I need your advice on this.

Hi, As the employer has already accepted your resignation and relieved you properly with Full and Final Settlement (FFS), there is no point in discussing compensation in lieu of a 3-month notice period now. You have the relieving order copy, which will be more than sufficient.

Release Letter and FnF Settlement

The release letter states that it is subject to FnF settlement, and ideally, they should have held the salary for February and adjusted it with the FnF. Ethically, if the notice period is three months and you have served only one month, you should pay the basic salary for the two months short served. It seems that your previous employer has released your February salary and not given you a no-dues clearance. They could also write to your present employer stating that you have not settled your dues with them, which could negatively impact your career.

The best thing for you is to not answer or engage in any communication with the company. Ignore any communication until further instructions are given to you. If you respond, you will be dragged into unnecessary drama.

Notice Pay Demand and Waiver

The demand for notice pay, in the given facts, is hindered by waiver. The former employer cannot succeed if they approach the court of law.