Hi Team, I need a suggestion, please help me. I joined a small company (with 6 years of experience in an MNC). Due to some reasons, I had to abscond from it exactly after 29 days (weekends/holidays included). In the offer letter, it is mentioned that if I had to terminate, I either need to serve the notice period or pay in lieu (3 months notice period). After a month, I received an email from HR intimating that the full and final settlement is done (they didn't give me the salary for those 29 days, nor am I interested in the salary) and need to pay a huge amount for not serving the notice period. I ignored the email and after two days received a reminder email. Now I'm worried. If I ignore that too, will there be any legal action? How can I protect myself as I cannot pay such a huge amount, and I'm not expecting a relieving letter or experience letter from the absconded company? I joined another company (with a two-month overall gap, including the absconded company's). With my previous company's experience, will there be any problem with this new company's employment? Please guide.
From India, Hyderabad
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1From India, Hyderabad
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Understanding Contractual Obligations and Legal Implications
If the contract states certain obligations, it is binding on you. You must fulfill the contract, or else the company can initiate a civil suit against you under the Indian Contract Act. Your new employment will remain unaffected as this will be a civil suit. However, if you receive a notice from the legal team of your previous organization, you may have to pay.
In case you have a remission letter, which is a letter relieving you of the contract or employment, then the company has no right to pursue you. An email to that effect holds the same validity.
From India, Kolkata
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If the contract states certain obligations, it is binding on you. You must fulfill the contract, or else the company can initiate a civil suit against you under the Indian Contract Act. Your new employment will remain unaffected as this will be a civil suit. However, if you receive a notice from the legal team of your previous organization, you may have to pay.
In case you have a remission letter, which is a letter relieving you of the contract or employment, then the company has no right to pursue you. An email to that effect holds the same validity.
From India, Kolkata
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Thank you for the response, but I'm not in a position to repay the amount they are asking for (it's huge for me). I was in a situation where I couldn't serve the notice period. As I left within a month, is there any way I could be relieved? During my 29 days of tenure there, for about 10 days, I was not even allocated a workstation, nor were any external trainings given. I mean to say that because of my desertion, there is no loss to the project or organization, and I wasn't paid for the days I worked. How noble is it for them to demand such a huge amount for the in lieu payment?
From India, Hyderabad
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From India, Hyderabad
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Legal Notice for Breach of Notice Period .docx