An employee in Manager post joined the comp in the month of Jan-25 and his probation period was 3 months, after completion of which he was given a confirmation letter in June-25. He accepted both appointment and confirmation letter ,with a notice period of 3 months. At the last week of June he dropped a resignation mail in which written that he will serve notice period of 1 month, on which the Hr replied on sudden resignation and asked him to serve his notice of full 3 months or else to pay the salary in lieu as mentioned in both appointment and confirmation letter. After that he again drop a request mail to relieve him early,to which Companies Hr Consultant replied twice regarding that he need to accept the Company Policy but he didnot replied anything to his mail.After that on 30th June, he again dropped mail saying today is his last day and he has kept all company essentials at his desk. Now the company consulted a lawyer and sent him notice. My ques is does by this approach will he pay the 3 months salary amount or can he escape this situation.
From India, Ahmedabad
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2From India, Ahmedabad
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The situation you've described is quite complex and depends on the specific labor laws in Ahmedabad, India. Generally, if the employee signed the appointment and confirmation letters agreeing to the terms, including the three-month notice period or payment in lieu, he is legally bound to adhere to these terms.
If he fails to do so, the company has the right to take legal action to recover the dues. The fact that the company has already consulted a lawyer and sent him a notice indicates that they are prepared to enforce the terms of the agreement.
However, the final outcome will depend on the specifics of the case and the decision of the court if it reaches that stage. The employee may have a legal defense, but it would be up to him to present this in court.
The company should continue to follow the legal advice of their lawyer. It's also advisable for the company to document all interactions with the employee regarding this matter, as this can serve as evidence if the case goes to court.
Remember, it's always best to consult with a legal professional in such matters to ensure that all actions taken are in compliance with local labor laws.
From India, Gurugram
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If he fails to do so, the company has the right to take legal action to recover the dues. The fact that the company has already consulted a lawyer and sent him a notice indicates that they are prepared to enforce the terms of the agreement.
However, the final outcome will depend on the specifics of the case and the decision of the court if it reaches that stage. The employee may have a legal defense, but it would be up to him to present this in court.
The company should continue to follow the legal advice of their lawyer. It's also advisable for the company to document all interactions with the employee regarding this matter, as this can serve as evidence if the case goes to court.
Remember, it's always best to consult with a legal professional in such matters to ensure that all actions taken are in compliance with local labor laws.
From India, Gurugram
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If the employee is really a manager, then he should pay the notice pay or serve the notice period. On the other hand, if he has just been designated as manager without any managerial powers, like decision making rights, allowing a customer any rebate or discount, approving leave of any subordinate employee, initiating any disciplinary action against any subordinate or appraising the performance of subordinate then he would be deemed to be a workman only. Then your notice period of three months will not have any validity but the contract of employment itself would become invalid. Of course, if your organisation has a certified standing orders and the said standing orders provide for three months' notice for an employee to leave the company then it would be binding on him. At the same time in the absence of any certified standing orders, the Industrial Disputes Act will be applicable to the employees, The ID Act does not say that an employee should give three months notice in order to leave the company, though the employer is bound to give one month (three months in the case of factories employing 100 or more workers) notice.
If the employee has been employed as Manager by all managerial powers, you can insist him to serve notice period or demand him to pay salary in lieu of short of that notice period.
From India, Kannur
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If the employee has been employed as Manager by all managerial powers, you can insist him to serve notice period or demand him to pay salary in lieu of short of that notice period.
From India, Kannur
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Thank you so much Madhu T K sir for your valuable insight. The Sales Manager left after working for around 6 months and In his mail he wrote that he will serve 1 month notice against his 3 months notice period. Also the factory is employing around 600 workers.
From India, Ahmedabad
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From India, Ahmedabad
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(Fact Checked)-Your input is correct. As per Indian labor laws, an employee must adhere to the notice period or pay in lieu. (1 Acknowledge point)
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Technically, yes he should be paying the notice pay.
You can adjust it against his F&F.
However, in this case, there is hardly anything to adjust against and you can at most, hold back his June salary, which means he will still be 1 month short.
You can file a legal case for recovery, but the cost of doing so is likely to be more than the short payment itself.
From India, Mumbai
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You can adjust it against his F&F.
However, in this case, there is hardly anything to adjust against and you can at most, hold back his June salary, which means he will still be 1 month short.
You can file a legal case for recovery, but the cost of doing so is likely to be more than the short payment itself.
From India, Mumbai
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(Fact Checked)-Your response is correct. The company can hold back his June salary and may file a legal case, but it might be costlier than the recovery amount. (1 Acknowledge point)
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Thankyou so much Saswata sir for your input. And yes his tenure is too short for the recovery.
From India, Ahmedabad
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From India, Ahmedabad
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(Fact Checked)-The reply doesn't contain verifiable facts, but rather expresses gratitude and an opinion. Therefore, no fact-checking or amendment is required. (1 Acknowledge point)
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(Fact Checked)-Your explanation is correct. The notice period or payment in lieu is binding if the employee holds managerial powers, as per the contract of employment and standing orders. (1 Acknowledge point)