• Unequal Termination Clause in Appointment Latter

Dear Sir/Madam

I am a senior manager in a pharmaceutical organization in SEZ Madhya Pradesh. I joined the organization in September 2017. I tendered my resignation on 20th June 2019 stating that I will serve my notice period as per appointment letter. 

After that company announced it's annual appraisal and increment in June end effective from 1st April 2019, but it was not awarded to me saying that you have submitted your resignation so you are not applicable as per company policy, though no such written policy exist or mentioned anywhere in my appointment letter. 

I was told If you take resignation back we will give you increment. I have already worked for 22 months & still working in notice pay and this was my 1st appraisal as last year by April I had only 7 months completed so I was told you will get next year on prorate basis. So I think it should have been given to me. Had I not resigned i was to get increment for 19 months and arrears effective 1st April 2019 as all other employee got. I had taken 3 days EL in June before submitting resignation but My salary was processed with LOP and it was told to me that EL is not applicable in notice period.
My issue is not increment/money though.

As per my appointment letter the termination clause is : "The company may terminate your employment at anytime upon 30 day notice or upon payment in lieu of notice (i.e base salary & allowances) as provided for under the applicable law. You may terminate the employment upon 90 days notice to the company." Since I have already completed 40 days and not willing to work any further due to above incidences. I feel the notice period is not equal and since they are denying me benefits citing policies and rules. Can I rightfully leave the company immediately stating that notice period should be equal so if yours is 30 days so is mine. Please process my F&F without any deduction as I already completed 30 days and as per Model Standing Order of MP also the notice period is 30 days only.
Asked 6 years ago in Labour

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6 Answers

It does appear that terms of appointment letter are discriminatory and biased in favour of employer 

 

2) if company can terminate your services by giving 30 days notice you should also be entitled to leave organisation by giving 30 days notice 

 

 

3) the problem is if you leave now company would not give you relieving letter and experience letter 

 

4) litigation is long drawn and expensive proposition 

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

You can send email that termination clause is arbitrary, one sided and discriminatory 

 

that you have served 30 days notice period and shall not be serving balance notice period as under the contract employer can terminate your services by giving 30 days notice and you must also be entitled to resign by giving 30 days notice 

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

You can leave under protest and file a complaint to office of dy labour against the same.  They will take appropriate action in the same

Prashant Nayak
Advocate, Mumbai
34514 Answers
249 Consultations

First of all no one can stop you from resigning or leaving the organization against your will but there are certain professional ethics which we all must follow, from your noting I am of the opinion that you have worked with the company for one year and nine months and first year was probationary period and whether they have regularize your services or not you have not mentioned,secondly the termination clause is ultra vires of the constitution as not even in single organization there are two notice periods one for the management and other one for the employee notice period always be one either for 30 days or for 90 days as the case may be generally it is of 30 days , so challenge this in the competent court and move an application to the labour department under ULP. Thirdly annual increment when have not become due how you can be benefited so obviously you are not entitled for the same, the question of resignation has not been attracted in your case , your HR department is not competent to handle the situation, challenge it only the rule of 30 or 90 days.

Koshal Kumar Vatsa
Advocate, Gurgaon
2282 Answers
3 Consultations

You cannot change the company' policy in this regard as per your own whims, the company may initiate legal action against you for absconding during the notice period and may terminate your services due to which you may even lose all the financial benefits that are due to you from the company.

Instead of taking any step in haste, you better consult a service law practicing lawyer in the local and then proceed as per the advise received.

 

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

If your termination clause states that you may have to serve the full notice period of 90 days or to pay an amount in lieu to compensate the balance or full notice period, then yo may not have any choice that to abide by the conditions which you have agreed to while signing the employment offer letter.

You may think which would be a better action from your side and decide about it wisely

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

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