• My company is demanding money from me for not serving the notice period.

I was working in a reputed & one of the oldest companies in India. I took a ONE year sabbatical leave (as per the the company's policy) with out pay. At the start of sabbatical leave, I surrendered all company assets like laptop,ID cards etc.,even my email id was also frozen. Now, at the 10th month of sabbatical leave I decided to resign. Upon consulting my Boss & the HR guys, they advised me that there is no need of serving the 3 month notice period since I was on sabbatical leave & also all assets were surrendered at the start of sabbatical leave !

Neither did the HR informed me of any recoveries! I even got a release email from HR stating that I have been relieved from all my duties 

Now, after all above, when its time for F&F settlement I received an email from HR asking me to pay an amount equivalent to 3 months my basic salary.

Kindly help & advice what to do?
Asked 7 months ago in Labour

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10 Answers

Dear Client,

It is advised to go and talk to your boss. If it is provided in the company policy that you have to serve a notice period or pay compensation then you should do it. Some companies have the policy that if you are on sabbatical then you need not serve notice period.

Anik Miu
Advocate, Bangalore
5846 Answers
59 Consultations

4.9 on 5.0

Please go through the clauses of your appointment letter again.If there is a notice period mentioned in the appointment letter and you resign without serving a notice period, you are bound to compensate the notice period amount.

 

Mohammed Mujeeb
Advocate, Hyderabad
19037 Answers
32 Consultations

4.5 on 5.0

Your notice period for three months will start from the date of putting down the papers for resignation.

As per offer letter and the terms and conditions of the employment you are supposed to serve three months notice period.

You were on sabbatical l;eave and not struck down the rolls or strength of the company.Hence you are bound by the terms and conditions of employment and are liable to observe them at the time of resignation.

The only consolation and the base for you to fight back would be the relieving letter given by HR

If there was no demand made by the company at the time issuing relieving letter about the compensation in lieu of  three notice period, then you can challenge their notice accordinlgy.

 

T Kalaiselvan
Advocate, Vellore
80019 Answers
1675 Consultations

5.0 on 5.0

If it's in your offer letter then you need to pay the basic salary for it

Prashant Nayak
Advocate, Mumbai
28570 Answers
101 Consultations

4.4 on 5.0

Do you have any email from HR guys that there is no need to serve the notice period 

 

2) if so reply to email that you were informed that it is not necessary to serve the notice period and that you had also received another email that you have been relived of all your duties 

 

hence no payment for 3 months salary is required 

Ajay Sethi
Advocate, Mumbai
89856 Answers
6518 Consultations

5.0 on 5.0

You ha e not answered by query whether you have any communication from HR that you don’t have to serve any notice period 

Ajay Sethi
Advocate, Mumbai
89856 Answers
6518 Consultations

5.0 on 5.0

You may have to fight it out on the basis of the relieving letter already given to you. 

You can clearly explain the circumstances under which you were relieved to support your stand.

T Kalaiselvan
Advocate, Vellore
80019 Answers
1675 Consultations

5.0 on 5.0

It is not the  policy of employer that governs terms of employment, termination and resignation. It the  clauses of your appointment letter. Check the  clauses of appoint letter for solution.

Ravi Shinde
Advocate, Hyderabad
3525 Answers
42 Consultations

5.0 on 5.0

That's not valid condition it should be only by way of salary in lieu of notice

Prashant Nayak
Advocate, Mumbai
28570 Answers
101 Consultations

4.4 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.

- If the said company has already issued Relieving letter to you after condoning the notice period mentioned in the offer letter , then they cannot recover the amount from you in the garb of final settlement. 

- Further, the said company cannot withhold your settlement amount . You can issue a demand notice for getting the settlement amount on refusal. 

Mohammed Shahzad
Advocate, Delhi
10668 Answers
132 Consultations

5.0 on 5.0

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