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Priya (Associate)     20 March 2013

Not serving notice period

Hi All

I could see many valuable posts and responses.First of all I would like to thank you all for this.

I need some help and clarification in my scenario. I accepted an offer with an IT organisation and did not sign any Service Agreement or Contract. I joined the organisation on 4th June 2012 and resigned on 8th June 2012 i.e I served only 5 days. My reason to leave the organisation is I was recruited for a post and job that suits my profile but after I joined I was assigned with something else which no way suits my profile. Also I was ordered to come in a shift where I have to stay until 10.30 PM which was not informed to me while recruiting me. Then I decided to resign and had a discussion with my manager and HR on 8th June 2012 and submitted a formal resignation in company's exit portal. After which they started threating me telling I have to pay compensation if I'm serving the notice period which no where mentioned in the offer letter. Statement in the offer letter is as follows,

Notice For Termination:

"The written notice required for termination of employment will be two months notice by either party. You would  be required to serve the stipulated notice period and early release would be at the sole discretion of the Management. In case you leave your employment without giving requisite notice, no relieving letter will be issued and settlement of dues will be at the sole discretion of the Management. However, under organisations disciplinary procedure your service can be terminated without any notice period."

Later, I received a notice from the Advocate on behalf of the organisation seeking to pay a fine of 60000 as loss to company which I can't bare in any way since I was not even enrolled to receive a months pay from the organisation.

Please suggest and help as how to proceed with this.

Appreciate your help.

Thanks in advance.

 



Learning

 10 Replies

Advocate Rohit (Advocate)     20 March 2013

Since you ahve received a legal notice through an advocte it is compulsory for you to reply it by an Advocate.

You need to provide copy of your offerletter and appointment letter so that the rights and responsibility of yours could be ascertained.

 

Don't ignore the notice otherwise it shall be presumed that you accept your liability and shall be liable to pay the alleged claim of Rs. 60000/-.

 

Regards,

Advocate Rohit Dalmia

9324538481

Mumbai

Daksh (Student)     20 March 2013

Priya,

Once you have accepted the job offer and joined the organization impliedly you knew before resigning that the organization is governed through its Standing Orders and the same also applicable upon you as well.  In so far the contradiction in the offer and actual reality and acceptance of your subsequent resignation means that the issue  ended there only.   The legal notice implies that you are called upon to remit two month's equavalent notice period sum.  You better reply stating reason of your resignation for which reason the notice is non est.  The non reply will mean acceptance of allegation how wrong they may be.  

Best regards

 

Daksh

Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 )     20 March 2013

I accepted an offer with an IT organisation and did not sign any Service Agreement or Contract. You said in your querry. It means orally accepted or writtenly. If it is writtenly then see the terms and conditions of the offer letter thoroughly. 

S P SRIVASTAVA (ADVOCATE)     20 March 2013

If you have not signed any agreement/ contract as stated by you,then the remedy  would be to reply to the notice --- that you are not liable to give notice nor  pay  fine or pay  salary in lieu of two months notice for the reaons that  the appointment  offered was  for  the  post and job that suits my profile but  I was assigned with something else which no way suits my profile. Also I was ordered to come in a shift where I have to stay until 10.30 PM which was not informed to me  a t the time of offer and it was orally agreed upon by me and the management to work for four -five days and if I wont find suitable and comfortable then I can resign accordingly I submitted my resignation.

But be sure that you have not signed agreement/contract or letter of offer of appointment. In case you have signed any such document then above reply is not advised.Then send copy of documents you have  with you and notice which you have received to enable me to draft suitable reply. Remember, no reply to the notice means acceptance of yours and agreeing to pay whatever they have demanded in the notice besides, it may adversely affect your future prospects and chances of employment also.

S.P.Srivastava

Advocate 

New Delhi

Kumar Doab (FIN)     20 March 2013

Learned experts/members have given valuable advice. Kindly follow it.  

You are in which state??? In which state is HO/redg. office of your company??

Employee should always consult elders in the family, competent and experienced well wishers, lawyer /law firm before acting in haste. An ill informed employee is hapless and sitting duck. Although there are exceptions but usually Line management/HR takes undue advantage of such employee.

Were you serving probation period at the time of resignation?

Two months notice period during probation seems to be unreasonable.

In addition to the Industrial Disputes Act, 1947, several states also provide for compliances under the Shops & Establishment Acts, Standard Standing Orders Act, ……. So, if the employee falls within the definition which has been provided under the said enactments, then he would be protected to that extent.

Some states had provided blanket exemption from the provisions of IESO Act to IT companies and some had not.

State of Karnataka has instructed all IT companies to submit their draft standing orders with Dec 2012 for certification within March, 2013.

First of all you may check if your state had granted exemption from IESO Act or not.

If not and standing orders have not been certified for your company Model Standing Orders shall apply.

As per provisions of IESO Act/Model standing orders, notice period is not applicable to trainee/probationer…..

13.          Termination of employment:

 

As per SE Act of some states if period of service is less than 3 months no notice period is applicable e.g. SE Act Delhi, and max. notice period is 15days/1month.

30.    NOTICE OF DISMISSAL.:

(b) Notice or wages in lieu thereof under section 30—When to be given?
A plain reading of section 30 of the Act would make it clear that whereas the notice of one
month under sub-section (1) is for the benefit of the employee, the notice under sub- section (2) is
for the benefit of the employer.

The clause on notice period mentioned in your appointment letter is obviously for the benefit of employer. This clause may be claimed/termed void to that extent.

The SE Act applicable to your state, IESO Act/Model Standing Orders, ID Act etc may be available at Dept. of Labor website of your state.

Company may claim that you do not fall within the category of workman, and plead for Specific relief Act.

However firstly: SE Act does not indiscriminate between workman and non workman and is applicable to all employees, and secondly designation alone does not decide employee is a workman or not.

Your lawyer may ask you a set of structured questions and opine that you fall within the category of a workman.  From your designation it appears that you might be covered within the definition of a workman.

However let the opinion of your lawyer be final on it and all points discussed in this post.

You have posted that:

--“ I accepted an offer with an IT organisation and did not sign any Service Agreement or Contract.”

Probably you mean to say that no service agreement/bond was signed by you.

--“ My reason to leave the organisation is I was recruited for a post and job that suits my profile but after I joined I was assigned with something else which no way suits my profile. Also I was ordered to come in a shift where I have to stay until 10.30 PM which was not informed to me while recruiting me.”

You should submitted your gentle dissent on it to the good offices of your appointing authority, MD, Company Secretary, Chairman and thus you could have built a record in your favor, and later you could have claimed that company violated the contract signed by it, and is unworthy of being employed with. Company would have either replied to it or would have maintained studied silence.

Or you could have narrated it at least in your notice of resignation/resignation along with the representations you have made on this to lien management/HR etc with date of representation, and names/designation/Dept/ address of company officials etc…

Thus you could have placed on record that it has violated its contractual obligation.

---“ Then I decided to resign and had a discussion with my manager and HR on 8th June 2012 and submitted a formal resignation in company's exit portal.”

Resignation is a personal matter and should be sent by letter thru redg. post under acknowledgment.

Even if the company has its internal portal it does not mean that employee can not detail the reasons in the format of the exit portal and take a screenshot/printout.

From some of the posts it is understood that companies keep the format specific, limited as suitable to their needs and line management/HR can access and amend.

You may not be having a copy of the exit format submitted by you.

---“ After which they started threating me telling I have to pay compensation if I'm serving the notice period which no where mentioned in the offer letter.”

Is it a offer letter or appointment letter?

Offer letter is issued after selection and appointment letter upon joining.

Have you submitted any joining report, and marked attendance.

--‘ Notice For Termination:

"The written notice required for termination of employment will be two months notice by either party. You would  be required to serve the stipulated notice period and early release would be at the sole discretion of the Management. In case you leave your employment without giving requisite notice, no relieving letter will be issued and settlement of dues will be at the sole discretion of the Management. However, under organisations disciplinary procedure your service can be terminated without any notice period."

Service conditions are governed by certified Standing orders of the company, appointment letter, statue….as discussed above.

Without any hesitation you may approach a competent and experienced labor consultant/service lawyer and send a fitting reply to the legal notice.

 


Attached File : 137621038 delhi shops & establishments act, 1954.pdf downloaded: 292 times

Ram (TL)     21 March 2013

Hi All,

I have joined in an MNC as a contract to hire employee with a notice period of 15 days. Today I have receive a mail from the consulting firm stating that, employee notice period is changed from 15days to 30days and the employer notice period remains same(15days) and it is applicable immediate.

Is this kind of thing is legally valid. At the time offer I have signed the offer with 15days notice period. Now suddenly changed the employer notice period to 30 days.

Is this legal? Now I am in search for a new job. If I got a new job, Should I service employer notice period of 30 days or Serving 15days of notice is legally sufficient/

Please help on this

Thanks.

Priya (Associate)     21 March 2013

Hi Kumar

Thank you so much for responding to my query. To answers the questions,

1. You are in which state??? In which state is HO/redg. office of your company??   -- Chennai, Tamil Nadu

2. Were you serving probation period at the time of resignation?   --- No. I'm 5 + yrs exp and joined this orgn as lateral and so do not have any service agreement or contract and was not having any probationary period.

3.Or you could have narrated it at least in your notice of resignation/resignation along with the representations you have made on this to lien management/HR etc with date of representation, and names/designation/Dept/ address of company officials etc…  

-- Yes. I had narrated the actual reasons in the space given for Reason for resignation while submitting my resignation in the company portal.

4. You may not be having a copy of the exit format submitted by you.   -- I do have the copy of the resignation submitted in the portal as screenshot. 

5. Additional information -- I served the organisation just for 5 days i.e Monday to Friday and resigned for which I'm not interested in getting any Releiving letter or Full and Final Settlement. Also I was not even assinged any system during that period. I felt I was in a wrong place and I took a wrong decision to join this organisation though I know the reputation of the orgn. Also I feel no employer can force their employees to work for them and every employee has the rights to resign  from an organisation. 6. I'm copying the statement from the notice sent by the advocate on bhalf of the organisation. Please suggest me as how can I proceed for this.  "

1) My Client is,  inter alia, engaged in the business of development of software and providing services and is known for its reputation in the market and has acquired the international goodwill all across the globe. The endeavor of my client is to maintain the goodwill and therefore upon appointment of any personnel, it incurs certain investments on the said personnel in various manners prior to appointment or during the job training including advertising, holding interviews, traveling expenses, providing technical training during certain assignments and the personnel is appointed and assigned a job only after spending time and money on the personnel and therefore my client is entitled to claim all such expenses and resultant loss from the personnel.

6) I have further instructions to call upon you and I do hereby require and call upon you, to pay my credit  and said sum of Rs 58,745/- only and along with interest @18% per annum from the date of initial demand and Rs 1500/- towards cost of this notice within fifteen days from the day this notice is served on you, failing which my client shall be constrained to adopt appropriate legal proceeding, at your entire risk as to all costs and consequences thereof, which please note. "

In the above clause as mentioned, I was not given any charges for traveling expense, or they did not provide any training, in fact I gave training to two of the team members during that five days. Please suggest if I need to reply to this notice through anadvocte or just ignore without replying to this. What would be the consequences in either case. Attaching the notice I received and the terms and conditions mentioned in the offer letter which I signed and accepted.


Attached File : 351380353 notice offer letter.docx downloaded: 246 times

Kumar Doab (FIN)     21 March 2013

@ Ram,

Pls, always start a new thread.

As you are into HR functions, you would know that: The change in notice period is contemplated by company when it want to check attrition and it has tested majority of the employees and has decided to separate…...

You have posted that:

--“I have joined in an MNC as a contract to hire employee with a notice period of 15 days. Today I have receive a mail from the consulting firm stating that, employee notice period is changed from 15days to 30days and the employer notice period remains same(15days) and it is applicable immediate.”

Service conditions are governed by certified Standing orders of the company, appointment letter, statue….as discussed above. The contract of employment should promote equality.

In addition to the Industrial Disputes Act, 1947, several states also provide for compliances under the Shops & Establishment Acts, Standard Standing Orders Act, ……. So, if the employee falls within the definition which has been provided under the said enactments, then he would be protected to that extent.

At times it is stated in appointment letter, rules and regulations amended by company from time to time shall be applicable/ acceptable by employee.

Hence the company might believe that an email is sufficient.

However a sensible employer having responsible team of personnel in HR would prefer to issue individual letters and obtain consent.

Vice Versa responsible personnel in HR/Legal cell would appraise the promoters/senior management to follow good HR practices.

Notice period is part of service conditions, and any change has to be with prior notice and has to have the consent of affected party i.e. employee.

Mere information should not suffice.

On your part you can always submit a gentle declinature on the changes unacceptable to you in a language and style as suitable and acceptable to you.

--“Is this legal? Now I am in search for a new job. If I got a new job, Should I service employer notice period of 30 days or Serving 15days of notice is legally sufficient/”

Such contracts may not stand test of law.

The company may cry that employee is not a workman hence cross reference is not possible for the employee. It may not work for the company.

15 days may be sufficient.

Since you are contemplating to separate, you may submit a written declinature under acknowledgment addressed to appointing authority, rejecting to accept change in notice, and demand immediate conformation in writing that no change as mentioned in email has been inserted in your personnel file and records.

You may also request that you may be allowed to examine your personnel file and seek an appointment on dated……….

Issue reminders, meet in person, submit minutes of discussion and close the matter in writing under acknowledgment and with a copy to you.

You may weigh all pros and cons as suitable to you and proceed as deemed fit at your end.

Valuable advice of learned experts/members is sought.

Kumar Doab (FIN)     21 March 2013

@ Priya,

----You have posted that:

Please suggest if I need to reply to this notice through anadvocte or just ignore without replying to this”

Online discussions have its own limitations. You should preferably show all documents to your lawyer, give inputs in person, spend some quality time with your lawyer and proceed under expert advice of lawyer. Your lawyer should reply to the notice.

Please suggest if I need to reply to this notice …………… or just ignore without replying to this”

It is absolutely your decision. It shall be better to decide after you have discussed with your lawyer. Let your lawyer’s opinion be final on all points discussed in this thread.

“What would be the consequences in either case.”

Maximum: Disbursement of notice pay. If applicablity of notice period is established.

Yes. I had narrated the actual reasons in the space given for Reason for resignation while submitting my resignation in the company portal.

I do have the copy of the resignation submitted in the portal as screenshot. 

"4) However, you have not been reporting to work without any reasons and your failure to adhere to the contract after the investment made on you by my client in selecting , appointing and training you and your sudden departure from work has put my client to great loss.  You have in fact not served the notice period also and therefore my client is entitled to recover an amount of Rs 58,745/- only and vide several letters demanded the said amount on account of your failure is tendering a notice of two months indicating your intention to leave the employment."

“Notice of Termination:

However under ……India’s disciplinary policy your services can be terminated without any notice.”

The actions of the line management/HR, to force female to work up to 10.30pm, coercing and forcing to perform duties for which employee was not contracted….. may be rated misconduct (in addition to others as per State Govt/central Govt/labor laws etc) and hence separation should be without any notice by employee as well.

You may highlight that you were approached by company for your expertise, reputation and impeccable record and were allured by promises………….good HR practices which were broken within…….days, and company started coercing and forcing for…………which is misconduct, violation of the contractual obligations, rules and laws……….this renders employer unworthy of being employed with.

You have suffered losses as you had to organize and prepare for the interactions (leaving all work and obligations) as and when desired by the company at your expense (without any expense to the company) and company has not refunded/ reimbursed a single penny till date..

During these 5 days, you have trained for…..days ….number of employees of the company and you need to be paid for ….days and amounts as………the amount of Rs.............is deemed suitable by you......

Blast them for stating under oath (lawyers statement) that you are not reporting for work and remind that you have resigned due to misconduct of the company. Demand to withdraw the legal notice.

Claim that it shall be difficult in future to explain why you had to separate within …..days and as per trends in the Industry all employer shall frown upon you and your employability and source of livelihood shall be compromised in future.

Hint damages and demurrages.

 

----SE Act Tamilnadu:

41. Notice of dismissal:

It suggests that for period of service less than 6 months no notice period is applicable.

Thus in consulation with your lawyer you may claim that clause in appointment letter is void to that extent as per SE Act.

One of the duties of Inspector/Chief Inspector is to ensure the payment of wages to employee who has been discharged ( separated) as per provisons of payment of wages under the Act i.e. Usual Pay day.

 

It shall be better to decide after you have discussed with your lawyer. Let your lawyer’s opinion be final on all points discussed in this thread.

In your kind of industry it is always better and beneficial to retain access to a competent and experienced labor cosultant/service lawyer.

In your kind of industry it is in the interest of the employees to unite, form associations, unions, IC's, works committees etc..

Valuable advice of learned experts/members is sought.


Attached File : 351393994 tamilnadu%20shops%20and%20establishment%20act%201947.pdf, 351393994 need for union wolg article draft2-6-1.doc, 351393994 union and it sector real-time-chap-03.pdf downloaded: 353 times

Adv k . mahesh (advocate)     22 March 2013

the thread was well goind suddenly a speed breaker entered

alright reply to the legal notice is right with all the facts 

1. if you have the notification advertisement then keep that copy also

2. resignation copy if acknowledgement 

which will provide you to fight 

ascertain once again if you have the copies of offer letter and appoitment letter before reply


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