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Suman Dhar (Asstt Manager (F&A))     03 December 2024

Not serving complete notice period as per terms of appointment

Sir/Madam,

Wanted to know that what if when comapny employee not serving complete notice period of 90 days as per terms of employment. When the employee already put notice for service of 55 days and offer for salary and leave adjustment. But company not accepted the offer of adjustment. 

If an employee left the organization with serving 55 days notice - can employer hold the full and final settlement with gratuity payable.

pls advice how to act legally. 



Learning

 5 Replies

Dr. J C Vashista (Advocate )     04 December 2024

Yes, the company may stop F & F payment for some time depending upon circumstances, however, it is an illegal and invalid action, which is challangable. 

T. Kalaiselvan, Advocate (Advocate)     04 December 2024

Generally the company may not permit you to violate the terms of employment however you may see if you are permitted to pay compensation for the period of notice not served, in that case you can communicate to the company about this and your last working day and quit the company on the slated date.

You can take legal action against the company if your dues are not settled.

Anshu Sharma (LAWFINITY SOLUTI   04 December 2024

Hi,

If an employee doesn’t serve the full notice period, the employer can withhold part of the final settlement, including gratuity, based on the contract terms. Since the company didn’t accept the adjustment offer, they may deduct the equivalent of the unserved notice period.

Gratuity is typically payable if the employee has worked for 5 years, but leaving early might impact it depending on the contract. For detailed advice, it’s best to consult a legal professional.

P. Venu (Advocate)     04 December 2024

What are the facts? no suggestion is possible on the mere posting of real or unreal context without disclosing the facts.

Ramesh Chandran   06 December 2024

If an employee does not serve the full 90-day notice period as stated in the employment contract, the company can refuse to accept a salary or leave adjustment for the remaining notice period unless the contract specifically allows it. However, gratuity cannot be withheld if the employee has completed five years of continuous service, as it is governed by the Payment of Gratuity Act, 1972. If the company withholds the full and final settlement or gratuity, the employee can issue a written demand and escalate the matter to the labour commissioner if needed. It’s best to review the terms of the contract and seek legal advice to address the situation properly.


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