company would issue you legal notice to pay the shortfall in notice period
If you fail to pay company can sue you to recover salary amount for shortfall in notice period
Not able to pay recovery amount to employer
Hello Respected lawyers, I joined an IT (Information Technology) Company ABC on 24th Nov 2022. I signed offer letter (not notarized or stamped) which states that I should pay 3 months notice period salary amount or serve 3 months notice period if I want to exit. Due to family emergency I asked them a 1 month Unpaid leave on 10th Jan which they denied as I was a newly joined employee. So, I resigned them on 16th Jan 2023 and exited the company on 26th Jan2023 by writing a mail to them that I will pay the 80 days shortfall of notice (as I was there for 10 working days post resignation which comes to 90-10=80 days pay of salary). What legal action can company can take against me if I don't want to pay the notice amount? Someone please advice on legal grounds what worst I could see. I see a mail from them in my inbox yesterday that they are going to initiate a legal action on me for recovery, but they didn't mentioned any sections and more details. Thanks, Suresh.
Asked 3 years ago in Labour
10 Answers
An employer is eligible for financial redress for any breach of contract by the employee. In this case, you have failed to observe the necessary notice period as specified in your agreement.
The employer may pursue legal action against you to receive compensation for the damage caused by your breach of contract. This may include remuneration for the period you did not serve as well as any other losses resulting from your violation of the contract. The employer may also ask for reimbursement of any expenses incurred in the process of finding a replacement.
Therefore, it is advisable for you to come to an amicable agreement with the employer regarding the issue. If the employer is not content with the settlement, they may initiate legal proceedings against you, leading to civil litigation.
You can reply the email through a advocate or send them a legal notice through lawyer
- 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, if you worked for probation period , then notice period will not applied therein , as the notice period is applied after completing the probation period.
- If you will not pay the notice period , then the company may file a civil case for the recovery of the said amount.
Thanks for answers so far. 1) In my offer letter, its no where mentioned as probation period and those terms but I got out of company in less than 2 months. Does all IT companies in India should have probation period even if its not mentioned in offer letter? 2) When I asked for 1 month unpaid leave for my family emergency, they denied it which made me no other option than to resign. If they would have given me an option of 1 month unpaid leave, then I would have stayed with he company. Also, I see the company in interview processes promised me some role orally but when I joined company its a different role which doesn't suit me. Can I challenge the company in not approving 1 month unpaid leave when requested as family emergency? 3) My company legal cases will be under Jurisdiciton of Karnataka while I am staying in Hyderabad. So, if they file civil case, do I have a need to go to court in Karnataka circle? 4) What is the worst case scenario I need to face if I don't attend to summons or ignore legal notices here? How does they recover the notice period amount if I am reluctant to pay? Does it affect my CIBIL scores or future employment in anyway? Is there any section number they use to file a civil case here against me?
Asked 3 years ago
Its totally depends on your employment agreement signed at time of joining the company.
If you are resigning on medical ground than nobody can stop you going out of the company.
Not necessary to have probation period
2) you can take the plea that you had no option but to resign as no unpaid leave was given for family emergency
3) you have to engage lawyer in Karnataka to defend case
4) they would execute decree passed against you for recovery of unpaid notice period money
The court will pass exparte orders against you if you don't attend. You should always attend and represent your case
They may file a money recovery suit to recover the notice period on the basis of the terms and conditions of the employment offer letter.
First they will issue a legal notice demanding payment of the same, failing to respond they may proceed as per law.
1. It is not mandatory for all the companies to have probation period for new entrants.
2. You cannot justify your resignation, claiming leave is not a right, it is only a privilege, hence you cannot find fault on this against the employer for denying the leave.
3. Yes.
4. The civil case will be filed and if you don't appear then they may set you exparte after which the decree holder my execute the decree in the place of your permanent residence,.
Dear client,
If you signed a contract with the company that requires you to pay a certain amount of money or serve a certain amount of notice period before leaving, and you did not fulfill that obligation, the company may have grounds to take legal action against you for breach of contract.
The exact legal action that the company can take against you may depend on the specific terms of the contract, as well as the laws and regulations in your jurisdiction. Generally, the company may be able to file a lawsuit against you to recover the unpaid amount. They may also be able to initiate legal action through alternative dispute resolution mechanisms, such as mediation or arbitration.
If you have received a mail from the company indicating that they are planning to initiate legal action against you, it is important to take this seriously and seek the advice of a qualified legal professional as soon as possible. They can review the terms of the contract and help you understand your legal rights and obligations. They can also help you negotiate a settlement or defend against any legal action initiated by the company.
In any case, it is always better to try and resolve any disputes or issues with your employer amicably and through negotiation, rather than through legal action. You may want to consider reaching out to the company to discuss a potential resolution, or engaging the services of a mediator or arbitrator to help facilitate negotiations.
