Hi, I am a Principal for a private school, part of a reputed education group, and have worked at the school for 8 years. Due to my husband's transfer, I will not be able to continue in the school. My notice period is 3 months, but I can only serve a one-month notice period. My employer has accepted the resignation but is insisting that I serve the full 3-month notice period. They have threatened me in writing with legal action and also mentioned withholding my experience certificate.

Additionally, there has been no annual increment in my salary for the last 3 years. I have 8 days of pending casual leave and 6 days of sick leave. My appointment letter specifies a 3-month notice period, failing which legal action will be taken.

Please guide me as soon as possible.

From India, Kanpur
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Madam,

You have served in a very responsible position, so kindly have an open discussion with your employer and come to an amicable solution. Your employer has every right to insist on your compliance with the notice period, and you are also justified in expecting to be relieved soon. I hope you are not intending to be relieved before the completion of the academic year. Try to persuade him/her that you will complete all your responsibilities and orient any newcomers before you could be relieved. A graceful departure is always very important.

From India, Chennai
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Hi Priya Pillai

What is a Contract of Service?

Contracts of Service & Termination

A contract of service is any agreement whether in writing or verbal, expressed or implied, whereby:

One person agrees to employ another as an employee; and

The other person agrees to serve the employer as an employee.

An apprenticeship contract or agreement is also considered a contract of service.

A contract of service can be in the form of a letter of appointment/employment.

The employer cannot change the terms and conditions of employment unless the employee agrees to it.

Any terms and conditions of employment, in a contract of service, that is less favourable than the relevant provision under the Employment Act is illegal, null and void. The provision in the Act will take precedence over a particular contractual term that is less favourable.

Difference between a Contract of Service and a Contract for Service

A contract for service differs from a contract of service.

A contract of service is an agreement whereby one person agrees to employ another as an employee and the other agrees to serve his employer as an employee. Under a contract of service, the employer must contribute CPF, and provide relevant statutory benefits such as annual leave, sick leave etc. for its employees engaged.

A contract for services, however, is an agreement whereby a person is engaged as an independent contractor, such as a self-employed person or vendor engaged for a fee to carry out an assignment or a project for the company. Under such a work arrangement, there is no employer-employee relationship, and the employee is not covered by the Employment Act.

There is no single conclusive test to distinguish a contract of employment from a contract for services. Some of the factors to be considered in identifying a contract of employment include:

Control

Who decides on the recruitment and dismissal of employees?

Who pays for the employees' wages and in what ways?

Who determines the production process, timing and method of production?

Who is responsible for the provision of work?

Ownership of factors of production

Who provides the tools and equipment?

Who provides the working place and materials?

Economic considerations

Does he carry on business on his own account or carry on the business for the employer?

Does he involve in any prospect of profit or is he liable to any risk of loss?

How are his earnings calculated and profits derived?

Essential clauses of Contract of Service

A contract of service must include the following clauses:

Commencement of employment;

Appointment – job title and job scope;

Hours of work;

Probation period, if any;

Remuneration;

Employee's benefits (e.g. sick leave, annual leave, maternity leave);

Termination of contract – notice period; and

Code of conduct (e.g. punctuality, no fighting at work).

Starting a Contract of Service

If a new recruit who has signed the letter of employment fails to turn up for work

If a new recruit has signed the letter of employment but subsequently informed the employer that he does not intend to start work with the company and failed to turn up on his first day of work, the Employment Act does not apply as the employer-employee relationship has not started.

Hence the employer will not be able to claim notice pay or any compensation under the Employment Act.

If the employer wishes to claim compensation from the recruit, he should pursue a civil claim through his own lawyer.

Confirmation of employees

There is no provision in the Employment Act on the conditions for the confirmation of an employee in his job. An employee's confirmation will depend on the terms spelt out in the employment contract. The length of an employee's service is calculated from the date on which the employee starts work and not the date of confirmation.

Hope the above explanation helps you understand the position well

From India, Bangalore
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The legal position is that you are obliged to work out your contractual notice period if your employer wants you to.

You have done the right thing by seeking to negotiate an earlier release. However, if your employer does not want to agree to this then you have a choice: you can comply with your employer’s wishes and work the 3-month notice period in full or you can break the contract by leaving earlier.

If you choose to leave early, an employer is entitled to stop your pay and benefits but they cannot force you to stay and carry out your work.

They could seek another legal remedy against you including a) compensation for breach of contract against you, claiming any financial loss they say arises as a result of your early departure or b) applying for a Court order to stop you working somewhere else, if your new employer is a competitor, for example.

It is relatively rare for an employer to take legal action against an employee who leaves early in breach of their contractual notice period, but it really depends on all the circumstances.

If your departure will cause the employer financial loss or you are leaving to go to a competitor, they are more likely to take action against you.

From India, Bangalore
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I would suggests you to serve the notice period anyway. Then talk with your employers in humble way so that they can understand your reason and let you allow to go.
From Pakistan, Karachi
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Have a peaceful discussion about your relieving time and explain him about your situation. So that your employer may accept.
From India, Chennai
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I think every contact has two sides options. As you are unable to serve, you can pay 2 months' payment in lieu of a 2-month notice period. Yet you should speak and convince the authority of the school. As you are heading the school, you should be concerned about the school.
From Bangladesh, Dhaka
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Dear Priyapillai, Better give doctor certificate (gynic) they wont be able to force you to serve 3 months.But try to negotiate with the higher officers. Wish u luck
From India, Bangalore
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Dear Priyapillai,

As you have mentioned in your post that they have accepted your resignation, does your resignation state that you would be serving only one month's notice? If yes, do you have any kind of confirmation email/letter apart from verbal communication from them?

Please note: Sick leaves are paid only if you are sick and cannot be carried forward. Casual leaves can be carried forward provided they are paid leave. Please review the termination clause in your appointment letter/offer letter and share the same with us to provide you with accurate information.

The above post does not provide much information about your employer details apart from your account of it.

From India, Bangalore
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Dear Ms. Priya,

Normally, as per the employment contract, you have to serve a three-month notice period, or otherwise, you have to pay the notice period shortfall payment to your employer and leave the organization. Even your leaves can also be adjusted towards your notice period. This is how all organizations are working. Please check with your employer if there is any rule of this type being followed in your organization. If it is so, you can settle your case amicably.

Regards, P K Sudarsan Senior Executive HR

From India, Chennai
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Dear Priya,

Kindly keep a copy of the resignation letter being acknowledged by your employer. Please try to find your replacement either by searching for a new principal or by taking the Vice Principal into confidence and training him/her during your notice period. After all, the employer will not be able to appoint a principal in such a short span of time. I would be happy to provide you with CVs for your location to assist you on a human level if you so desire.

arjunpandav9@yahoo.com

Arjun Pandav.

From India, Mumbai
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