Fixed-Term Contract Dilemma: Can My Employer Enforce a Notice Period After I Declined an Extension?

Fixed-term contract and notice period

A fixed-term contract ends on a specific date. If an employee wants to exit before the contract ends, they must serve a 2-month notice period.

Contract extension issue

Just 5 days before the contract termination, the employer extended the contract, which I declined. However, the employer now insists that I must serve a two-month notice period. The employer's extension of the notice period, despite my declining the extension and previously stating not to extend the contract, implies that I am not exiting before the contract's original end date.

Employer's stance on relieving

Now, the employer states they are not officially relieving me. Please advise.

Check the document attached.

Fixed-Term Contract and Mutual Agreement

FTC cannot be extended without mutual agreement or consent. Therefore, if the employee has not accepted the communication extending the fixed-term contract, the contract will come to an end on the date mentioned in the original contract. The employee can simply leave the office on that date. If the employer is not relieving the employee, it should be reported to the concerned officer, such as the Labour Officer.

Legal Actions When Not Covered by the Industrial Disputes Act

If the employee does not fall under the scope of the Industrial Disputes Act, they should approach the Court, stating that their contract of employment has ended and the employer is not relieving them. Additionally, mention that the employer is taking advantage of the notice period clause by extending the contract unilaterally. An injunction can also be sought against the employer's actions.

Ignoring Renewal Letters Without Supervisory Role

If you did not have any supervisory role, you can ignore the renewal letter but seek assistance from the Labour Officer to obtain the necessary certificates and documents from the employer.

Hi, From the information provided, we have to consider the following key points:

Fixed-Term Contract Ends Automatically—Clause 8 states that your contract automatically stands terminated at the end of the fixed term unless extended.

Notice Period Applies Only If You Exit Before the Contract Ends—Clause 9 mentions that a 60-day notice or salary in lieu is required only if you leave before the contract period ends.

Employer Can Extend the Contract at Their Discretion—Clause 10 states that the employer can extend the contract by issuing a letter of extension. However, it does not say that the employee must accept the extension.

Why the Employer’s Claim is Unfair:

You Did Not Exit Before the Contract Ended—Your employment automatically ended on the fixed-term end date, so the 2-month notice period is not applicable.

You Rejected the Extension Beforehand—Since you informed them a week before that you do not wish to extend the contract, they cannot force you to serve an additional notice period.

Employer Cannot Unilaterally Extend the Notice Period—If your contract ends naturally, the employer has no right to impose an additional notice period.

Recommended Next Steps:

Send a Formal Email/Letter

State that your contract ended automatically on the specified date. Mention that you had already declined the extension before the contract expired. Politely ask them to issue an official relieving letter as per the contract terms.

Seek Legal Support (If Needed)

If the employer refuses to relieve you, consult a labor lawyer. You can also approach the Labour Commissioner’s Office for dispute resolution.

Communicate with Your New Employer:

If your new employer requires a relieving letter, you can explain the situation and share a copy of your contract. Your appointment letter and last working date in the contract should be enough proof that your employment ended.

Your employer’s demand for a notice period after your contract already ended is invalid. They cannot refuse to relieve you based on this. If they continue to delay your relieving letter, you can take legal action.

Contract Validity and Acceptance

The contract stands valid upon acceptance by the other party. The second party is free to either accept or reject the contract. You should proceed until the final date and then either leave or send a lawyer's notice.