• Legal obligation in case less notice period is served

Hello,
I recently joined an IT company based in gurgaon 15 days back.I have a good offer and had resigned from current company.Since notice period is 3 months which is too long , i requested them to cut it down to 1 month as i have to join other organisation early, furthermore i dnt want any reliving letter from them as it is just 15 days of work for me.I jsut want to serve 1 month so that company can find someone , even as of now i am not doing any productive work just coming to office and sitting idley or reading few process docuemnts Company hasn't yet told me what they are upto but i would require your assitance in this regard.
1) Can i leave company after serving notice of 1 month ?
2)What all legal obligations i have to face ?
3) i am ready to pay whatever damges are as long as it is reasonable ( no training or relocation provided so will not be eligible to pay any sum .as per contract, ready to pay 3 months basic as damages to them as same was applicable to me )
As per terms of termination in appointment letter says " your employment shall terminate immediately upon company giving you 3 months notice termination for any reasons or company may in its sole discretion terminate your employment immediately by paying you basic monthly salary in lieu of giving you such notice.
you may terminate your employment by giving company three months prior notice after completion of any service continuity obligation as applicable.In case you resign or your employment is terminated within twelve months from date of employment , you agree to repay in full all recruitment , relocation and other expenses incurred including advances paid or reimbursed to you by company and you hereby authorize company to deduct without hold such repayment in full form any compensation or other amounts otherwise owed or payable to you
Asked 8 years ago in Labour

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7 Answers

Answer to your queries

1) Your request to the company to relieve you in 1 month is still under consideration by the company, therefore If you decide to leave company could take coercive steps to recover money from you,

2) Company can file criminal cases against you if you decide to leave before notice period and thereafter you will be liable to pay compensation to the company,

3) Your offer letter will spell out the amount that you are liable to pay in such an event, reasonable or not it has been agreed by you therefore you become liable. But if you take it to court that amount might be reduced looking into the facts of the case therein.

Kiran N. Murthy
Advocate, Bangalore
1298 Answers
194 Consultations

5.0 on 5.0

1) you are required to serve 3 months as per your appointment letter

2) if company agreed to accept one month notice them you can serve one month notice

3) offer to pay the shortfall in notice period

4) company would recover recruitment and other expenses from you

5) if you fail to pay company would sue you in this regard

Ajay Sethi
Advocate, Mumbai
94523 Answers
7486 Consultations

5.0 on 5.0

1) your contract provides if you resign within period of 12 months of joining you have to pay recruitment and other expenses incurred by the company

2) your agreement provides you can terminate your employment by giving 3 months notice period

3)it is at discretion of company to waive off 3 months notice period

4) if company does not waive off notice period it would recover the shortfall in notice period plus recruitment and other expenses incurred by the company

Ajay Sethi
Advocate, Mumbai
94523 Answers
7486 Consultations

5.0 on 5.0

1. You are bound by the contract. If you do not want to serve more than a month's notice then serve a month as notice period and pay salary equivalent to two months. This would discharge you of your liability. If you do not do this the company will be at liberty to file a suit for breach of contract and also seek injunction to restrain you from joining another employer, The above being said, the company may in its discretion accede to your request.

2. The compensation may be in lakhs.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0

As per terms of termination in your appointment letter "you agree to repay in full all recruitment , relocation and other expenses incurred including advances paid or reimbursed to you by company and you hereby authorize company to deduct without hold such repayment in full form any compensation or other amounts otherwise owed or payable to you"

This has been mutually agreed to upon by you, however the amounts spent by the company will be determined by them, if this seems to be unreasonable on determination this aspect may if you wish be challenged before the labour court.

However if the amount to be paid is unreasonable or too high, you already have a better job in hand at the cost of losing it and spoiling your career it is better to pay off the old company take back your credentials and leave with honor. No point in litigating this frivolous issue in court, whilst pausing your career.

Kiran N. Murthy
Advocate, Bangalore
1298 Answers
194 Consultations

5.0 on 5.0

1) Can i leave company after serving notice of 1 month ?

If the employment offer letter says that notice period shall be three months either side for leaving the company or terminating the services, then this condition has to be observed and you cannot decide to leave the company by giving one month notice period.

2)What all legal obligations i have to face ?

You can serve one month notice period and make payment for shortfall of two months which you can mention in your resignation letter.

3) i am ready to pay whatever damages are as long as it is reasonable ( no training or relocation provided so will not be eligible to pay any sum .as per contract, ready to pay 3 months basic as damages to them as same was applicable to me )

In any case it will not be possible for the company for having imparted any training within this fifteen days hence any claim in this regard by the company shall not be justifiable and in case of any such claim you can protest it in writing.

T Kalaiselvan
Advocate, Vellore
84724 Answers
2172 Consultations

5.0 on 5.0

As company is paying me 3 months base salary if they are terminating me doesn't same is applicable to me , also the course of conduct for me is to serve 3 month notice period and it is not mentioned explicitly if i have to serve 3 months notice and if not what i have to do, can you give some insight on this ?

To your above further question:

You may see to it that the company shall pay you three months salary (which has been mentioned by yourself in the first question) in your own words which is repeated below:

" your employment shall terminate immediately upon company giving you 3 months notice termination for any reasons or company may in its sole discretion terminate your employment immediately by paying you basic monthly salary in lieu of giving you such notice."

The above indicates that it is reciprocal understanding, i.e., if you leave without giving or serving three months notice, you may have to pay back or if the company terminates you then they will pay that amount.

You are bound by service contract.

T Kalaiselvan
Advocate, Vellore
84724 Answers
2172 Consultations

5.0 on 5.0

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