• Company asking to serve notice period

I am working for a company since the last 2 year. Now I have got a better opportunity outside that company but the present company is forcing me to serve 90 days of notice period. In the offer letter I have, it is clearly mentioned that subject to Company's discretion, you can be asked to serve 90 days of notice or pay the salary for the period. I am agreeing to pay the salary of 3 months but they say Company's policy have changed and you will have to serve 3 months of notice period. I was not made aware of this change on Company's policy nor it is written in my offer letter. What are my options in this regard?
Asked 3 months ago in Labour

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9 Answers

You can pay salary in lieu of notice period 


the offer letter does not mention that you have to serve 90 days notice period 


however if your new employer insists on relieving letter from current employer better serve 90 days notice period 

Ajay Sethi
Advocate, Mumbai
84070 Answers
5480 Consultations

5.0 on 5.0

1. You are bound to serve the notice period as contractual terms are sacrosanct and legally binding.

2. It is the discretion of company to accept salary in lieu of notice period.

3. There is nothing illegal in what the company is doing.

Ashish Davessar
Advocate, Jaipur
30745 Answers
913 Consultations

5.0 on 5.0

Company has to abide by old conditions if not implicitly communicated earlier.

Contact me through this platform and  shall let you out of this dilema. I am handling such matters frequently.

Anand Shukla
Advocate, New Delhi
666 Answers
13 Consultations

4.9 on 5.0


  1. As  your appointment letter says the notice of 90 days Or allowing you to buy the notice period with payment of 3 months salary to the company is at the discretion of the company. 
  2. However, as the choice is open and you have a better opportunity awaiting, you can leave offering to buy the notice period. 
  3. The company cannot prevent you from pursuit of a better opportunity and will not favour company if the matter reached the courts. Write to the in clear terms in your letter of resignation, if you haven't submitted it yet, that you resign with immediate effect and you are willing to pay the company as per policy of the company 3 months salary and regret having to take decision in such short notice. 

S J Mathew
Advocate, Mumbai
3339 Answers
157 Consultations

5.0 on 5.0

You don't worry abut the company is telling you orally about this condition for resignation.

You first tender your resignation letter with the date of leaving the company and your last working date in the company and include that you are willing to pay for the unversed notice period as per the said clause that has been imposed in the employment offer letter.

You obtain an acknowledgment for this resignation letter tendered in writing in person or sent by registered post.

You may stop going to the work based on  the resignation letter after the last working date as mentioned by you in the said letter.

They cannot do anything about it.

If they are holding your relieving letter or experience certificate or settlement of F & F payment, you can resort to legal action by first sending a legal notice to that effect and then by approach appropriate court of law for reliefs.

T Kalaiselvan
Advocate, Vellore
74174 Answers
1203 Consultations

5.0 on 5.0

- 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, if you dont want to serve the notice period then pay the notice period amount i.e. 3 months if given in the offer letter .

- You can issue a legal notice to the employer and thereby ask for Relieving letter . 


You can contact me , if further suggestion needed. 

Mohammed Shahzad
Advocate, Delhi
7982 Answers
85 Consultations

5.0 on 5.0

The policy cannot be changed without informing you of the same. The policy still exists but they don't want to accommodate you that is the truth.

Send them a legal notice in this regard if they do not want to relieve you.

Rahul Mishra
Advocate, Lucknow
13048 Answers
42 Consultations

5.0 on 5.0

Any change in the company policy without intimation to the the employee and writing getting a new agreement in writing cannot be enforced. You can legally pay 3 months salary in lieu of the notice period to them. No need to serve notice period.

Siddharth Jain
Advocate, New Delhi
5759 Answers
83 Consultations

5.0 on 5.0

Dear Sir,

1. This is a clear case of breach of employment agreement by the Company. You must have been notified about the change made in company's policy. 

2. You may file a suit in the civil court, on the same ground. However, court procedures and long and tedious. It is better you opt for out of court settlement. 

3. Please notify the HR of your company, about the same and let them know about the employee contract you signed. 

4. Since you are ready to pay the salary, you must not be required to mandatorily serve the notice period.

Thank you

Anik Miu
Advocate, Bangalore
2499 Answers
26 Consultations

4.9 on 5.0

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