If your wife has resigned she has to serve the notice period or pay salary in lieu of notice period 

it is at discretion of company to waive the notice period 

What is the clause in the appointment letter if employee refuses to serve notice period ?

Do she have any written communication with the company that she is incline to resign but the HR offer her placement in Netherland branch. 

Well, even if she left without intimation or resign forthwith and leave.  Nothing will happen.

pay up 5 lakhs - Fake call 

Terms of service contract is required to be examined. Verbal assurances has no value. If there is valid clause to this effect then she has to either serve notice period or should buy three months notice period by payment salary (not perks) of notice period. Such service agreement is valid but can be questioned on technical grounds. 

Before adverting to your queries I need to know few things-

1. What was the effective date of resignation submitted by your wife? Was it with immediate effect or otherwise?

2. Whether the company sent any communication when your wife submitted resignation? 

2. I need to have the appointment letter of your wife to find out the terms and condition. Is there any thing written regarding notice period of three months? What is its language because lot of depends on the wordings of the siad terms and conditions.

I will give you further advice on hearing from you. 

You need to pay only actual loss if any to the company. Notional loss will not be considered by court

The company cannot demand her to pay Rs. 5,00,000/- just like that without any valid ground or any clause available in the employment offer letter.

If at all there is any notice period to be served , it will be just three months or she may have to compensate the company with salary consisting basic pay and DA alone  for the remaining  notice period.

She has already tendered her resignation, hence referring to the said resignation letter, she can write another letter stating her last working date and her willingness to compensate the remaining notice period as on the last date of working, and let she not attend the office after that.  

If in case the company is not accepting the resignation and still demands the payment of Rs. 5,00,000/- only, then she can send a legal notice demanding the company the reason and the law involved in their demand for this exorbitant and unjustified amount .

For now she can proceed with her intended resignation as per her resignation letter already submitted.

- 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 her 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.

- Hence, if the notice period is mentioned in the offer letter for 3 months , then she will either work for the same or pay the same. 

- If unable to pay the same , then the company can file a case for the said recovery. However, she can take plea that the company has not paid her full and final settlement amount and that should be adjusted therein, or she can pray to the company to waive the notice period. 

You are welcome for your appreciations

Great. Collect the order in writing so as to avoid future complications, if any. 

Thanks for your appreciation 

Goodluck

- Good day for you both 

Good. All the Best