I work at a MNC, I have got a good offer from other organisation which serves my personal and professional needs. Had resigned asking relieving in 30 days however company management is adamant and asking me to serve full 90 days. I am willing to adjust my notice period with available leaves and ready to compensate with 2 months salary for remaining days of notice period. Company management is threatening me to sue in court if I didn’t serve my notice period in full and I also have to join future organisation in next 30 - 45 days. Clause in my offer letter: Either party can terminate your appointment with the company by giving notice in writing to the other. However the company has the right to terminate your service at any time without notice whatsoever by paying you an amount equivalent to 90 days salary in lieu of such notice.
Dear sir/ma'am,
It is advised that you do not leave the company without serving the full notice period. Your employment is governed by the contract and the aforementioned clause clearly gives the company leverage over you. It can terminate your contract whenever it wishes to but you cannot do so. However, you can always use the route of negotiation and smart talk. But any reckless action that goes against the terms of contract could always backfire in future. Thank you.
It is at discretion of company to waive the notice period and accept salary in lieu of notice period
2) if you do not serve the notice period company would not give you experience certificate and relieving letter
Under the termination clause your employer has no case against you and he cannot go to Court invoking said Clause. But the problem is with your credentials as experience certificate, reliving letter and other documents. They may hold the documents back. If you don’t require such documents you can bade them goodbye anytime. You question does not make clear whether you can do without such documents. Further, any employer going to Court with such clause against employee will receive flack from Court as Courts are biased in favor employees and against employer. That will be bad record for the employer. As said if you don’t need any papers you can leave them without any hesitation. Employer can cause no harm to you.
The clause in the employment agreement usually states "ninety days’ written notice or three (3) months’ gross salary in lieu thereof".
Therefore if you are willing to pay the company should not raise any objections.
There is no way that the company can force you to serve the full notice period.
If you are willing to monetarily compensate towards the balance of notice period, the company cannot hold you back in the company forcibly.
If the company refuses to accept your resignation in person/writing send it to the company via email at the same time. The company should be ready to adjust the leave against the notice period if you have earned leaves accumulated.
The management has no right to retain even after payment of the damages as per the agreement.
Thereafter, you should issue a written notice to the management by communicating about further development and requesting your relieving letter.
If your employer intentionally dragging your case to issue relieving letter than you can approach the labour court or the tribunal by issuing lawyer notice to the Management, HR and Reporting Manager.
In the extreme case you may also consider moving the High Court under Article 226 read with Article 14.
- As per Specific Relief Act, if any employee quits before the notice period, the Employer can only recover the Notice pay, and the Company cannot force to serve the entire notice period.
- Further, the resignation decision is the employee’s decision, and the employer cannot sue for breach of contract, if the employee leaves without serving contractual notice.
- Except, recovery of the said amount, company cannot harm you for the same
- Further, no employer can refused to return the original certificates or to issue relieving letter .If they are doing so, their act is illegal, unjustified and against the fundamental rights of the employee.
- Further, the employment bond with the negative covenant is valid and legally enforceable, if the parties agree with their free consent i.e. without force, coercion, undue influence, misrepresentation and mistake, but it is not enforceable, if it is either one sided, unconscionable or unreasonable.
- Further, section 27 of the Indian Contract Act prohibits any agreement in restraint of trade and profession.
- Hence, better serve the notice period or pay the same , and tender your resignation with the request of issue experience certificate.
You need to buy the notice period by paying for it. Still company may not give you relieving letter. You need to send legal notice
Company cannot stop you but can demand 2 months salary if u left in 30 days. Nothing else.
The company may not give nice feedback to future recruiter so be aware of that. Good luck
