• Is my company liable to pay me me if they releive me earlier

Hello,

I resigned few weeks back. I have two months notice with my employer ( a renowned IT services company, very ethical in their conduct). I agreed to serve two months notice period but my employer is releasing me within 3 weeks. I want to know if they are liable to pay me for rest of the notice period. Following is the clause ::

This contract of employment is terminable, without reasons, by either party giving one month's prior written notice during probationary period and two month's prior written notice on confirmation of employment. <COMPANY> reserves the right to pay or recover salary in lieu of notice period. Further, <COMPANY> may at its discretion relieve you from such date as it may deem fit even prior to the expiry of the notice period. However, if the management desires the employee to continue the employment during the notice period, the employee shall do so.

Please help

Thanks
Mayank
Asked 7 years ago in Business Law

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4 Answers

1) if the company is relieving you early company should ideally pay you for rest of notice period

2) in your resignation letter you had agreed to serve the 2 months notice period as provided in your appointment letter .

Ajay Sethi
Advocate, Mumbai
95205 Answers
7607 Consultations

5.0 on 5.0

As per the terms of the agreement the employer is bound to pay you for the rest of the period.

However you are entitled to salary for the period you served even during notice period.

Devajyoti Barman
Advocate, Kolkata
22920 Answers
498 Consultations

5.0 on 5.0

Hi

Once you submit your resignation, it is the duty of the company to avail your services till the end of your notice period.

However some companies do relieve their employees earlier than the end of notice period on the grounds(which of course are very silly and unprofessional) such as

a) Resignation disturbing to team harmony and /or

b) Confidentiality of project and /or

c) Completion of knowledge transfer by the resigned employee and hence may be relieved in interest of resigned employee work life balance and /or

d) Poor performer and/or

e) Character and conduct and / or

f) Part of forthcoming redundancy etc

Though you have every right to legally challenge your present employer, it is not advisable in your case as

a) In every new employment, the new employer does a back ground verification check with your past employer and

b) Your current employer should not be upset with you and derail your back ground verification in the event of you challenging them on your relieving;

We totally agree and empathize with you and also agree that it is painful to be relieved earlier than planned, but it is in your best interest that you take the early relieving in stride and get ready for your new job.

Rajgopalan Sripathi
Advocate, Hyderabad
2173 Answers
394 Consultations

5.0 on 5.0

You have communicated your decision to put down your papers or resign from your employment by observing the condition of notice period and have even agreed to serve the notice period as prescribed.

The company invoked the clause mentioned by you, which is actually beneficial to you since your purpose is also to quit the company.

In my opinion there is no legal infirmity in the company's response to your resignation letter.

T Kalaiselvan
Advocate, Vellore
85404 Answers
2236 Consultations

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