Naveed Baig (Branch Sales Manager) 21 March 2012

Notice period buyout reimbursement

Hi,

My issue is that I had resigned from this company Infoedge in June 2011. My employee contract said that I have to serve a notice period of 3 months or give equivalent salary for the balance period. I actually served a notice period of 27 days, while the balance 63 days I offered to buyout on the basis of a verbal commitment from my new employer.

After I joined my new employer, I made sure that I took this verbal commitment on a official email from the company to ensure that they don't back out on this commitment. In the meanwhile, there was a delay in reimbursing this amount to me because of some internal lack of clarity and confusion within my new company, which has been settled now, but the amount has still not been paid to me.

Due to unforseen circumstances, I resigned from this company and rejoined my ex-employer Infoedge again in Feb 2012 after a gap of 6 months. After constant email follow ups on my full & final settlement including the notice period reimbursement, the HR told me that this amount will be settled at the earliest. But now after repeated follow ups, they are dilly dallying this issue saying that I have rejoined my ex employer, they will have to rethink on this.
On the other hand the fact of the matter is that the company where I have rejoined, is not going to write off this amount either. I have bought some more time to pay this amount saying that I still have to recieve this amount from my past company,

I request experts to please let me know, what are the legal recourses available to me, to recover this notice period buyout amount from my previous employer if incase they refuse to settle this amount at this point of time.

Thanks & Regards,

Naveed Baig

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5 Replies

Kumar Doab (FIN) 21 March 2012

It appears that 2nd company has issued the FNF statement and has disbursed the FNF amount.

Have you accepted the FNF statement? You should have protested the FNF statement and should not have accepted it. If you have not accepted you may agitate and demand the amount on the strength of email confirmation. Rejoining the previous employer does not seem to be a legitimate reason. It may be HR decision/policy.

You may try and get a waiver from previous employer on notice pay.

You may consult a competent and experienced service lawyer with all record and your lawyer may choose to issue a legal notice.

Naveed Baig (Branch Sales Manager) 21 March 2012

Hi Doab,

Thanks for your response. It seems that the FNF statement is ready with the HR and probably it includes the notice period buyout amount as well, but they have still not issued it to me as yet, since they need to discuss this issue with the top management and disburse it only if they are ok with it. I will definately not accept the FNF statement if it does'nt include the notice period buyout.

Rejoining my previous employer to me is legitimate, since it was not working between me and my manager, since we have a totally different outlook towards business which led to my dissatisfaction. At the same time my previous employer was very keen on having me back in their ranks and we parted ways on amicable terms then.

Can you please suggest me some good service lawyers, if I have to consult one ?

Regards,

Naveed

Kumar Doab (FIN) 21 March 2012

You have posted:

-"It seems that the FNF statement is ready with the HR and probably it includes the notice period buyout amount as well,” Apply your resources and manage to get a copy.

-"my previous employer was very keen on having me back in their ranks and we parted ways on amicable terms then.’ Apply your rapport, goodwill, and persuasion, persistence, reasoning, negotiation skills and get a waiver of notice pay.

Your near and dear ones can guide you to a competent and experienced service lawyer.

You can perform Lawyer Search at LCI. You can also establish contact with “Related labor and Service lawyers" given on the bottom of this web page.

Naveed Baig (Branch Sales Manager) 21 March 2012

Hi,

You have a valid point and it would not be difficult for me to convince them to wave off my dues. But the fact is that, the total notice buyout amount is higher than what I actually owe to Infoedge now, since they have already deducted around 60% from my final settlement amount when I left them in July. So the best they can do now, is to wave off the balance 40% which I still owe them.

But in this case, I would still be at a loss of 60% which has been already deducted from my final settlement and this can be compensated only if I get reimbursed by my previous employer.

Regards,

Naveed

Kumar Doab (FIN) 21 March 2012

You have posted:

-"it would not be difficult for me to convince them to wave off my dues.' Attempt and get waiver of 40% immediately and then try for 60%.

--"It seems that the FNF statement is ready with the HR and probably it includes the notice period buyout amount as well,” Apply your resources and manage to get a copy, as ap before it is revised.

If the previous company has deducted 60% from FNF statement then it has paid you as per amount in FNF statement and must have issued form 16 accordingly.

If the second company includes notice period buy out amount by including in FNF statement then it shall issue form 16 accordingly and you shall not be subjected to dual tax treatment.

If you can peruse both employers this shall be the quickest and easiest solution.

If first company does not agree for waiver and second company declines notice period buy out amount, then you may approach your lawyer with email confirmation/email trails and try for disbursement.

Second company may also demand confirmation from you/first company that notice period pay has been waived off or not?

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