1) it is at discretion of company to accept salary in lieu of notice period
2) if company rejects your friend offer then he has ti serve the 3 month notice period
3) if your friend refuses company would not give him relieving letter
Notice period issue
One of my friend wants to leave his job and has put his resignation also and he does not want to serve the 3months notice period for some personal reasons His appointment letter says "Upon completion of your probation period and confirmation as a regular employee, you or the company may terminate your service at any time by giving 90days notice or basic salary in lieu thereof. However due to exigencies of business the Company may at its sole discretion reject the salary in lieu of notice and ask you to serve the entire or part of the notice period. You shall not be deemed to have been relieved of your services except issue of a letter by the Company to that effect".
Asked 7 years ago in Labour
7 Answers
What are the consequences if he leaves the company without serving the entire 3months notice period?
Asked 7 years ago
If you leave the company without serving notice period company would declare you as absconder
2) it would affect your future job prospects
1. When a contract gets executed it thereafter ranks sacrosanct and becomes the charter of rights and liabilities of both parties thereto. There is no escaping from the contractual obligations.
2. If he resigns in violation of the contract the employer will declare him an absconder and refuse to issue the relieving letter. This apart, it can seek injunction from the civil court to restrain your friend from joining another company and also recover the salary equivalent to notice period left unserved by him with consequential damages.
1. Your friend is under obligation to serve 3 months notice ( or salary in lieu thereof) for resigning from his job as per the agreement he has entered in to with is employer.
2. He can serve his resignation with salary in lieu of the notice period stating that due to exigencies and reasons beyond his control he is unable to continue in his present employment.
3. If he can prove that it is not possible on his part to work there any further for reasons beyond his control, his Company may be directed by the Court, against application filed, to relieved him by accepting payment of salary in lieu of of his notice period.
4. He should tender his resignation along with a ceque for an amount equal to his salary for the notice period and ask for his immediate elease order.
1. The Company may declare him absconder.
2. The Company will surely refuse to issue him the release order.
3. The Company may file a suit against him for not complying with the terms of the employment agreement and claim compensation for the breach of terms of the agreement.
As per the conditions of the employment he need to serve the notice period or can buy it out provided the company approves it.
What are the consequences if he leaves the company without serving the entire 3months notice period?
The company may not relieve him
The company may declare him as an absconder and terminate his services.
The company may not issue him with a experience certificate.
The company may file a recovery suit as per the conditions of employment.