Can company force employee to serve the full notice period
P.Sai Raja Sekhar
(Querist) 22 July 2011
This query is : Resolved
We have a three month notice period to be served on the company when we resign. There is also an option to pay for shortfall in notice. Can the company force the employee to work for the entire three month notice period without accepting notice pay for shortfall even after the employee offers to work for a reasonable time after notice(say, offered to work for one month and pay for the balance two months)? Can somebody please tell me regarding Sec.14 of Specific Relief Act?
The details of the clauses in Appointment Letter pertaining to resignation are as follows:
The appointment letter says \"It is also understood and agreed upon confirmation of your services: (i) The employment may be terminated by either party without assigning any reason by giving the other party three months notice or pay in lieu thereof
(ii) Notwithstanding anything to the contrary contained herein, misconduct on the part your part will entitle us to terminate your services without any notice or pay in lieu thereof\"
At another place it says that \"Yo shall be bound by the Company\'s Service rules and regulations as applicable to senior members of staff, save the terms and conditions explicitly specified in the contract of service, including any other rules and regulations that are in force from time to time.\"
Service regulations say that it is the discretion of the company whether or not to accept notice pay. In essence they can ask us to serve the complete notice period by rejecting the offer by employee to pay for shortfall in notice.
Kirti Kar Tripathi
(Expert) 23 July 2011
A company can not forced to an employee to work as it is a contract of personal service and it is well settle position of law that a contract of personal service can not be specifically enforced. However, company has a right to claim damages and compensation.
