Recently, I resigned from a company without serving the notice period of 2 months. They have sent me the full and final settlement and are asking me to pay the amount, or else they will take legal or criminal action against me. My concern is that I am not in a situation to pay them back as the amount is huge. Therefore, I asked them to waive off the amount. They are saying that they cannot waive off the entire amount, but the interest part can be removed. Please tell me what I should do now as I am running short of money.
From India
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From India
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As advised by Kurmanaa, consult a lawyer as you have not given enough information. Alternatively, kindly provide full information about what contract you have signed, how long you have worked, why you resigned without serving the notice period, etc. Some HR experts or a lawyer among the members may give you more advice.
From United Kingdom
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1639From United Kingdom
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I understand that the company has sent you a statement and not the amount.
Notice Period and Payment in Lieu
There are two possibilities with regard to the treatment of the notice period or payment in lieu of the notice period. The notice period or pay, as applicable to an employee who is not coming under the definition of a workman and that applicable for workmen. Now, the term workman will cover all employees who are not authorized to act as supervisors or managers either by sanctioning leave to a subordinate employee, initiating disciplinary action against a subordinate, or conducting an appraisal of his subordinates. The salary is not really a matter in this case. Workmen are guided primarily by the provisions of the Industrial Disputes Act. The Act says that in order to retrench a workman, notice should be served. But there is nothing in the Act which makes it obligatory on the part of a workman to serve notice if he wants to resign. Therefore, a workman shall not be asked to pay any notice pay as per statute.
However, if the establishment is covered by the Industrial Employment (Standing Orders) Act and has a standing order certified by the competent authority (an officer of the Labor department not below the rank of Dy. Labour Commissioner) and the said Standing Orders have specific provisions relating to notice or notice pay, then he is supposed to follow it.
No clause in the appointment order can circumvent the above two Acts and therefore, anything written against the above will not be maintainable. Therefore, from a workman, the employer cannot recover notice pay by filing a suit against him.
Managerial Persons and Contractual Obligations
Now, in the case of managerial persons, nothing in the above two Acts will be applicable, and therefore, everything relating to payment of salary, resignation, termination, etc., will be governed only by the contract of employment. If the contract of employment provides for notice, the employee is expected to serve it or pay in lieu of notice. Still, the remedy is not any criminal proceeding against the worker but by filing a civil suit under the relevant provisions of the Contract Act. Naturally, it will take its own time to finalize the issue.
I am not sure the company will go for it because a breach of contract would have even taken place from the company's side also. Generally, the employee who is forced to leave the company would have some valid reasons why he quit without notice. If he has proof to establish that he was promised a better salary on confirmation or if he was given a promise that he would get some benefits which the company had failed to give later on, or for any other reasons he was mentally harassed and so on, he can easily establish that cheating or breach has taken place from the employer and that led to his leaving. Therefore, often it is found not to pursue such cases further after sending two or three letters.
In any case, the company has every right to hold your relieving order or service certificate which would be a basic document for those who would like to pursue a career. And those who do not care for these certificates will always neglect the demands of the employers.
The above points are purely personal and will depend mainly on the relationship you had with the employer and the terms of your contract of employment. Therefore, as advised by senior members, please take an opinion of a good advocate also.
Regards,
Madhu.T.K
From India, Kannur
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Notice Period and Payment in Lieu
There are two possibilities with regard to the treatment of the notice period or payment in lieu of the notice period. The notice period or pay, as applicable to an employee who is not coming under the definition of a workman and that applicable for workmen. Now, the term workman will cover all employees who are not authorized to act as supervisors or managers either by sanctioning leave to a subordinate employee, initiating disciplinary action against a subordinate, or conducting an appraisal of his subordinates. The salary is not really a matter in this case. Workmen are guided primarily by the provisions of the Industrial Disputes Act. The Act says that in order to retrench a workman, notice should be served. But there is nothing in the Act which makes it obligatory on the part of a workman to serve notice if he wants to resign. Therefore, a workman shall not be asked to pay any notice pay as per statute.
However, if the establishment is covered by the Industrial Employment (Standing Orders) Act and has a standing order certified by the competent authority (an officer of the Labor department not below the rank of Dy. Labour Commissioner) and the said Standing Orders have specific provisions relating to notice or notice pay, then he is supposed to follow it.
No clause in the appointment order can circumvent the above two Acts and therefore, anything written against the above will not be maintainable. Therefore, from a workman, the employer cannot recover notice pay by filing a suit against him.
Managerial Persons and Contractual Obligations
Now, in the case of managerial persons, nothing in the above two Acts will be applicable, and therefore, everything relating to payment of salary, resignation, termination, etc., will be governed only by the contract of employment. If the contract of employment provides for notice, the employee is expected to serve it or pay in lieu of notice. Still, the remedy is not any criminal proceeding against the worker but by filing a civil suit under the relevant provisions of the Contract Act. Naturally, it will take its own time to finalize the issue.
I am not sure the company will go for it because a breach of contract would have even taken place from the company's side also. Generally, the employee who is forced to leave the company would have some valid reasons why he quit without notice. If he has proof to establish that he was promised a better salary on confirmation or if he was given a promise that he would get some benefits which the company had failed to give later on, or for any other reasons he was mentally harassed and so on, he can easily establish that cheating or breach has taken place from the employer and that led to his leaving. Therefore, often it is found not to pursue such cases further after sending two or three letters.
In any case, the company has every right to hold your relieving order or service certificate which would be a basic document for those who would like to pursue a career. And those who do not care for these certificates will always neglect the demands of the employers.
The above points are purely personal and will depend mainly on the relationship you had with the employer and the terms of your contract of employment. Therefore, as advised by senior members, please take an opinion of a good advocate also.
Regards,
Madhu.T.K
From India, Kannur
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