Can an employer take legal action against an employee if they leave the job by resigning but do not serve the proper notice period, say 3 months? Can the company sue the employee for the recovery of the notice period? What legal implications will there be?
Also, if the company, by mistake, continues to credit the employee's salary to their account for 2-3 months even after the employee has resigned, is the employee legally liable to be sued?
Please suggest.
From India, Delhi
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Also, if the company, by mistake, continues to credit the employee's salary to their account for 2-3 months even after the employee has resigned, is the employee legally liable to be sued?
Please suggest.
From India, Delhi
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Legal Action for Breach of Contract
Employers can sue employees for compensation for breach of contract. If the appointment letter includes an exit clause with a notice period or a salary in lieu clause, the employer can file a lawsuit against the employee for compensation.
If an employee receives any benefits (such as salary without working) due to a mistake by either the employer or the employee, the employee must return all money (salary) to the employer to avoid any issues. Employers have the right to reclaim their money, and provisions related to this are outlined in the Indian Contract Act of 1872.
For more related topics, you can visit the following links:
- [White Eagle: Recovery from Ex-employees](http://kuldeeprathore.blogspot.com/2009/09/recovery-from-ex-employees.html)
- [White Eagle: Can Salary be deposited & then withdrawn by the company?](http://kuldeeprathore.blogspot.com/2009/11/can-salary-be-deposited-then-withdrawn.html)
- [White Eagle: Legal aspect for Notice pay](http://kuldeeprathore.blogspot.com/2009/08/legal-aspect-for-notice-pay.html)
From India, Hyderabad
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24Employers can sue employees for compensation for breach of contract. If the appointment letter includes an exit clause with a notice period or a salary in lieu clause, the employer can file a lawsuit against the employee for compensation.
If an employee receives any benefits (such as salary without working) due to a mistake by either the employer or the employee, the employee must return all money (salary) to the employer to avoid any issues. Employers have the right to reclaim their money, and provisions related to this are outlined in the Indian Contract Act of 1872.
For more related topics, you can visit the following links:
- [White Eagle: Recovery from Ex-employees](http://kuldeeprathore.blogspot.com/2009/09/recovery-from-ex-employees.html)
- [White Eagle: Can Salary be deposited & then withdrawn by the company?](http://kuldeeprathore.blogspot.com/2009/11/can-salary-be-deposited-then-withdrawn.html)
- [White Eagle: Legal aspect for Notice pay](http://kuldeeprathore.blogspot.com/2009/08/legal-aspect-for-notice-pay.html)
From India, Hyderabad
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