Notice period recovery amount after the company relieved willingl
Notice period clause in my offer letter:
You will be considered as confirmed in service only when you are intimated to that effect in writing. On confirmation, the notice period for separation on either side will be three months. You will be required to attend office throughout the notice period. In the event of operating the provision of payment in lieu of notice, the notice pay shall mean the full monthly salary, including any other allowance payable. The option of offsetting the notice pay, partly or fully, by way of payment in lieu of notice period or by adjusting the privilege leave at your credit is at the sole discretion of the company keeping in mind business continuity.
I had served 22 days on notice period and get relieved from my job after handing over all the assets and task to immediate superior. My previous company had adjusted my salary for 21 days, my bonus benefits lying with them and adjusted EL and now asking for a recovery amount of Rs. 42,000/- and threatening to go in legal if I don't pay them. They had issued a demand letter with time limit of 1 week. I resigned from the company because they had issued a warning letter and raised eye for not being ethical. Since I don't wanted to work with such company, i decided to resign. Also requested one of my previous employer to join them, they had accepted the request and now i am working with them since 3 months.
I had discussed with them over phone, but they are not ready to accept and again threatened to wait for legal consequences.
I am seeking advice on the action, which I can take on this issue. please guide. Thanks in advance.
Asked in Labour from New Delhi, Delhi
send a letter to company and seek detailed break up of how figure of Rs 42000 was arrived at
2) you were required to serve 3 months notice period if you were confirmed in writing
3) in your case you served for 22 days only . company can recover from you amount for shortfall in notice period
4) contact a local lawyer and reply to demand letter
1. What is the recovery amount?
2. Do you owe the said Company that much of amount which they had missed to claim from you while releasing you?
3. With out knowing as to what for the said amount of Rs.42 K has been asked to be recovered, it is difficult to advise properly.
4. However, unless the said amount stands as outstanding in your account with your earlier Company, you are not liable to pay the same.
5. If the said amount is for causing damage to the said company, there shall have to be an enquiry to arrive at the amount of loss and you should be given a chance to defend yourself to prove that you are not responsible for the said loss.
6. In absence of the above, you are not required to pay the said amount.
If you did not resign in accordance with the notice period then the company can refuse to relive you. However, once you have been relieved it cannot sue you for recovery unless the employer has reserved the right to proceed for recovery of those dues which the employee owes to it. Reply through your lawyer to the notice received from your ex-employer.
You are bound by the company's employment conditions which you accepted while joining the company.
If you are required to fulfill the obligation of 90 days notice period by attending the office or compensating the period unable to serve the notice period, you are obliged to pay the amount that is due from your side.
Instad of stretching the issues for legal action, you can negotiate the amount to be settled and settle the bargained amount to get cleared of all the future legal hassles.
Alternately you can give a reply notice challenging their legal demand notice and can face the problem in the court if they prefer to file a money recovery suit.