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Shafique Ahmed (Senior Systems Engineer)     16 May 2012

Notice period violation - what action can the company take?

Dear Experts,

I am working as Senior Systems Engineer with a vary large IT Company (MNC). The notice period an employee has to serve in this company is 3 months. Due to some very personal reasons I had to resign from the company on 09-May-2012. I told my managers that I can work only till the month end i.e., 31-May-2012 and can no longer report to office. I requested them to consider my situation as an exception and accept my request of relieving from the company on the said date. Moreover I told them i was not joining any other company and it was solely on the basis of the personal crisis that I resigned. I requested them I was ready to buyout my remaining notice period as well. But they have denied all my humble requests. I would really appreciate if you experts can tell what are the repercussions that I will face if I violate the notcie period and what legal actions can the company take against me? Will it cause a hindrance to my career and will it be a blocker if I want to join a new company in future? Appreciate you immediate replies. Please advise/suggest.



Learning

 6 Replies

Anjuru Chandra Sekhar (Advocate )     16 May 2012

They may not give you Experience certificate, Relieving order etc that may be required by the new company that you may want to join.  Legally they can file a civil suit to recover the damages arising out of your absence from duties during notice period, which anyway you assured them to pay without having them to contest in court.

Anjuru Chandra Sekhar (Advocate )     16 May 2012

They may also stop payment/transfer to your new company of any amounts relating to terminal benefits like EPF, Gratuity, Pension etc.

Nagaraja B S (Corporate Commercial & IP Lawyer)     17 May 2012

 

Mr. Shafique,

Civil suit for recovery of money for not serving notice period. Also, they can hold your experience letter, pf, gratuity, bonus etc.,


Let me know, if there are any concerns.

Regards,

Nagaraj

Corporate, Commercial & IP Lawyer

IP Lex Global Services

Email: nagaraja_bs@iplexglobal.in

www.iplexglobal.in

sebaztian (private)     22 May 2012

 

Hi,

Since this is a related post I am posting alongside.

Actually my case is similar.

I joined an IT firm based on the promise by their recruitment HR that my job location will be in chennai and I will be a billable resource. But once I joined they told me that there is no projects in chennai, so you had to go to bangalore or be non-billable. Being non-billable means part of my salary will not be paid. This is the case in most companies now.

I resigned stating that the promise made during the recruitment was not held true. My manager and the HR spoke to me after I sent the resignation letter, they advised me to remain unbillable and they fill fit me once they get a project in chennai. I said i can't do that and I would rather resign. The HR person told me then you had to server the notice period. 

I told him  I will think about it and came out of that meeting.  I did not went back to the office from the next day as I found simply serving the notice period (that is 2 months ) will only spoil my career and my life. 

 After a week I got a letter stating that my unauthorized absence is causing the organization trouble and asking me to immediately return to office.

 My total days of working in the organization is exactly 8 days. I have my resignation letter sent to my manager and HR.  Please advise what legal actions can be taken from their side and what are my side points if I can contend if a case is filed.

I  just wished to work in my choice of  place. But now because of the false commitment by them I am fully stressed and lost my peace. Your advice could  help in clearing my mind. 

Regards,

sebaztian

Shafique Ahmed (Senior Systems Engineer)     22 May 2012

Dear Experts,

I really appreciate your responses. Thanks a lot for responding. I would like to know if they can really hold my PF money. Can not I withdraw PF if I know the PF account number. I heard that the PF money is credited to Central government and the company will have no say if the employee wants to withdraw the amount if he is no longer an employee of the company. And for the Civil Suit, I am ready for my notice period buyout even now but my only concern is the PF money. Please advise/suggest.

Regards

Shafique Ahmed

 

Kumar Doab (FIN)     22 May 2012

--PF and Gratuity are covered under Social Security Laws.

--PF is immune from any attachment.

Can the amount standing to the credit of any member in the Fund be assigned, charged or attached?: The amount standing to the credit of a member in the Fund cannot be assigned, charged or attached under any decree or order of any Court. Similarly, the amount standing to the credit of a member in the Fund at the time of his death is free from any debt or other liability incurred by the member before his death and cannot be attached under any decree or order of any Court. {Section 10}

  If your future plans are to be in employment it shall be better to transfer the PF to new company and keep the a/c regular for 10 years and be eligible for pension.If you withdraw you shall loose major portion of pension component.


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