Dear All Experts,
I am asking a very important question relating to employment agreement terms and conditions.
Mr. X is an employee with a pvt ltd company. Mr. X has entered into an employment agreement with the employer and as per the agreed T&C the notice period term is 90 days.
Mr. X resigns on 19 July 2016 by giving 30 days notice to the employer i.e. last working day as 19 Aug 2016. An employer does not accept the last working date and force Mr. X to buy out the notice period i.e. remaining 60 days.
Company did not release Salary for the month of July 2016 in the month of August saying that same would get adjusted against notice period recovery.
Mr. X has 40 leave balance and Mr. X requested employer to adjust the 40 leaves against the balance notice period. As per company policy, leaves cannot be encashed or adjusted against the notice period.
As per company HR policy company with hold salary up to 2 months during the notice period. Is this policy rational ?
Below are my questions with reference to this situation.
1) Is employment agreement enforceable in Indian Court of Law?
If yes then what are the consequences and typically how many years does it take for the out come of legal suit.
Will it be in favour of Employer or Mr. X?
2) Is there any way for Mr. X to get the salary for July and August month from the employer.
3) What happens if Mr. X does not serve the notice period of 30 days i.e. upto 19th August and upon knowing the facts that he is not going to get any salary decides to join new employer from 9th August 2016 in order to make living.
4) Mr. X family member is not keeping well and Mr. X requested employer to release salary for the month of July 2016 on humanitarian ground but company denied to release the salary saying that it will follow the company policy.
Note: It would be great if experts can share some reference case laws and supreme court judgement which covers the above situation.
Thanks
