CA Sujit Mehta (Chartered Accountant) 12 August 2011

Termination clause of employment

Termination Clause of Employment in my offer letter is as follows:-

"After Confirmation, either company can terminate contract of employment by giving three months notice to that effect in writing or salary in lieu thereof, or you can can terminate contract of employment by giving three months notice to that effect in writing or salary in lieu thereof."

I have resigned saying that I am ready to serve for the notice period. However HR is relieving me within 1 month & when I asked them to compensate for the remaining period of 2 months they refused & sent following reply:-

"Since you have decided and initiated to separate from the organization and the relieving date is given by the organization based on business need, the balance notice period is being waived of by the leadership team"

Kindly Guide as to whether I will be able to get the 2 month's compensation.

Reply Follow

2 Replies

Kumar Doab (FIN) 12 August 2011

It is felt that;

If you have submitted the notice of resignation and have mentioned that effective date of resignation shall be dated.............(3 months from date of notice of resignation) then before of effective date cited by you, resignation can not be accepted, and if accepted it should be treated as illegal. You have posted that you have written that you are willing to serve the notice period.

If you tend to give you acceptance to the decision of the company to relieve you within one month, company has to pay you salary for the remaining notice period.

Advice of learned experts/members is sought.

Anoop Mukherjee (RSM) 12 August 2011

dear sir,

in my previous co. I resigned with one month prior notice.aginst that notice they relived me and waived off my notice.they have not given one month notice period salary.this legal or not.what should I do .