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Sohan Singh   27 June 2024

Regarding notice period not served employer asking for 2 months salary

I received an offer from company "B" and, due to this offer, I had to leave my current organization ("A") after fully serving my notice period. However, on the joining day at company "B," they asked me to provide an undated cheque for two months of salary as a guarantee in case I did not serve the notice period in the future. They also had me sign a contract for the same.

Since I had a running loan at the time, I had no option but to comply, so I provided the cheque to the company. After two months and 15 days, I submitted my resignation to company "B" due to my mother's heart disease and the unsuitable work environment. I contacted the CEO of the company and requested an early release, to which they initially agreed but later denied.

I returned the company laptop and stopped working for them. At that time, I also sent an email to the HR department canceling the cheque. Despite this, they presented the cheque at the bank for encashment, which was returned due to insufficient funds since I had already canceled it. Subsequently, the company sent me a legal notice through their legal advisor, demanding the amount along with 18% interest and a fee of 11,000 for the legal notice.

 

Apart from this, when i received the offer letter in october 2023, the 2-months notice period contract (which states that
if i break the contract, | need to pay 2 months' salary) was not mentioned in the offer letter. However,i am still ready
for the payment. This requirement was not disclosed during the initial job offer letter in October 2023. Had i been
aware of these conditions beforehand,I  would have reconsidered accepting the offer and leaving my previous
organization.

 

Is it legal for the company to demand this amount from me?

Additionally, they have not paid my last month's salary.



Learning

 4 Replies

Dr. J C Vashista (Advocate )     27 June 2024

Serving notice period is different to cheque bounce case and you have been slapped with both.

Even after serving notice period, why did you issue cheque ? However, if you have issued cheque you were required to maintain balance in your account and take the cheque leaf back from the company, which you did not, now face consequence and contest / defend conningness of your ex-employer

 

Sohan Singh   27 June 2024

1. At the time of joining, they collected that cheque for security purpose. but when i leave that organization then they presented a cheque to the bank for encash the amount.

2. While leaving the organization, at that time, I sent an email to the HR department to settle the amount, as I have a one-month pending salary. Even physically, i went there but they are not ready for settlement.

3. In the offer letter, they haven't mentioned this notice perirod and contract.

 

 

P. Venu (Advocate)     27 June 2024

You need to reply to the legal notice stating the circumstance under which the blank cheque was given. In the given facts, there is no legally enforcible debt and that constitutes a proper defence if the company chooses to initiate criminal action under Section 138 of NI Act.

T. Kalaiselvan, Advocate (Advocate)     27 June 2024

The cheque was bounced due to insufficient funds, but you can challenge the case properly because you have not issued the cheque for any legally liable debt,  hence the cheque bounce case would not be maintainable. 

If your settlement is not made then you escalate the matter through legal forum. 


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