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Raman   12 October 2015

Notice buy out

My contract says - "Your Employment with the company may be terminated by either party by giving 90 Days written Notice ot three months gross salary in lieu thereof. The company reserve the right, at its sole desecration, to release you from service of the company only after satisfactory handover of the responsibilities assign to you  (Including any knowledge transfer)". My notice period is 90 days but I have given 45 days written notice and ready to pay for remaining days. I have requested to early release, given them training plan to complete handover but still my employer is not willing to release me in 45 day and they want me to keep for 90 days. Please suggest If they can stop my release letter If I pay for the remaining days (45Days) and leave the organization by informing them via e-mail. Also suggest legal implications.



Learning

 7 Replies

Kumar Doab (FIN)     12 October 2015

The extarct posted by you indicates:

1. Notice pay in lieu of notice period.While the notice period is 90days.

 

2. Handover of charge including KT.

 

Here you have notified notice period of 45 days and affirmed to tender notice pay of 45 days and to do KT.Aparently you have done your part.The employer should arrange for handover and succession plan and exit formalities.................and communicate the same to you.

 

 

Now employer has declined.

Who has declined;appointing authority,MD or any other authoirity competent to accept/decline?

 

Is this declinature in writing?

Is the reason for declinature narrated in writing?

 

 

You may also relate to any other rule/policy that is inserted in appointment letter/service conditions e.g. HR policy/employee handbook etc......................and its descripttive clauses on notice period/pay..............

 

You may also build irrefutable written record before you separate that should help you later.

 

You have the option to revert to the written declinature on record under proepr acknowledgment.

 

The employer may decline to relieve, claim loss etc...........and may press penultimate clauses if any in service conditions signed by you.

 

You must obtain wrtiien confirmation from next employer that it shall absorb you on the strength of copy of resignation, proof of disptach only, not demand relieving letter,service certificate, etc..............................and/or terminate if you don't get it from past employer and supply these to next employer.

 

It shall be appropriate to show all docs on record to an able Labor Law Consultant/Service Matters Lawyer......................before you proceed further on your own............

Raman   12 October 2015

Hello, Thank you for reply.

Early release is declined by my manager and reason are :-

  1. Getting Early Release is not a right but an exception that the engagements grant basis the case at hand. This must be executed amicably with all fairness. Unless there is business need, there is no pleasure in holding back an employee post resignation. Notice period clause is given in employment contract (signed by employees) is just to protect business interest. Hence it states

Descripttion: cid:image001.png@01D102A4.4640A9B0

  1. Knowledge transfer can only happen once another person joins or a suitable fit moves internally in your role.
  2. Knowledge transfer doesn’t necessarily limit to the existing work. It may encompass futuristic work if the expectation was set before or a commitment was given to stakeholders.
  3. Indeed your resignation has been approved but the release date was slated covering the NP. 
  4. You can take 1 week leave to manage your family issue and then you can serve remaining notice.

These reasons and suggestions are given to me in written but nothing is mentioned in my employment contract apart from the condition that I have mentioned in my 1st post.

As per my understanding notice period is for KT and company can not stop me saying we are hiring your replacement.

As per training plan my hadover will complete withing 2 week as I have joined this company only 8 month back.

Kumar Doab (FIN)     12 October 2015

You have explained in your post. Likewise you may in a gentle manner revert to the person that has written to you, and tactfully explain and contest.

This is apparently not stated in the extarct from appointment letter posted by you that KT has to happen if another person as replacement joins. Moreover it is not duty and responsibility of outgoing employee to find the replacemernt.The replacement can be anyone including Boss/HOD/peer...........................as per will of the employer.

Another point is that is there anything for KT?

As per you NO. You may be right since everything that is known to you is knwon to bosses and employer.

 

If employee has decided to retire by resignation/notice of resignation then employee shall decide the expiry of notice......................................

 

The moment employee has resigned he/she has ended the employer-employee relationship.

The futuristic goals have a limitation and you have tendered 45 days notice that should suffice for the employer to put his house in order..................

 

All said and done it is time to counter all contentions of bosses and explain that 45days is sufficient, you are willing to perfrom tasks that are possible within and upto  expiry of notice tendered by you.................................and the T&C inserted by employer in private gareement drafted by it and signed with you, does provide for notice pay in lieu of notice and does not include T&C that are wrongly being interpreted now....................

 

Whats is this establishment; Commercial,Industrial?

 

You are in which state? The repoerting office is in which state? The Redg. office is in which state?

Whats is your designation and nature of duties?

 

Do you have decision making powers e.g. appointment/termination/sanction (not just recommendation) of increment-leave etc? Can your recommendations be cancelled by anyone above you?

Does the company have it certified standing order and does it cover your designation? Do you its copy?

 

 

 

 

 

 

 

 

Raman   13 October 2015

 



Another point is that is there anything for KT?
yes, I have but very few.

Whats is this establishment; Commercial,Industrial? - It's a pvt ltd company - BPO HR oprations

You are in which state? - West Bangal - Kolkata

The repoerting office is in which state? Mumbai

The Redg. office is in which state? Mumbai

Whats is your designation and nature of duties? Process Lead 

Do you have decision making powers e.g. appointment/termination/sanction (not just recommendation) of increment-leave etc? No

Can your recommendations be cancelled by anyone above you? - Yes

Does the company have it certified standing order and does it cover your designation? Not sure

Do you its copy? - No
 

 

Kumar Doab (FIN)     13 October 2015

BPO's are covered by Shops and Establishments Act of the state and you might be Easily covered by the definition of 'employee' as in 'West Bengal Shops and Establishments Act'.......................

 

Look into the clauses on Notice period/pay as in this Act. It should be max.30days, that too, as per length of service.

 

You may also inquire if the state Govt. has exempted your BPO from standing orders and if not standing orders may apply.If these are not certified then Model Standing Orders shall apply.

 

Model Standing Orders; Sec13-19: Notice Period during probation Period is NIL and after confirmation 30days.

 

Employer has to diplay standing orders at a  conspicious place in office say notice board  and can be personaly held responsible for violation of standing orders and penalized.

If standing orders are certified you may go thru these and check if your designation is covered by these.

 

Employee can demand an authenticated copy and empoyer has to supply even if against a  nominal cost say Rs.10/........................................and employee or anyone can obtain the copy from certifying officer (that might be DLC at the location of Redg. Offcie of the company) or thru DLC at your location, against a nominal cost say Rs3/page.

 

These enactments shall prevail upon  any private agreement/rule/policy that employer has signed with employee e.g. appointment letter/contract of employment/HR policy/Service Rules/service agreement/Employee handbook etc.................

 

Thus notice period/pay in lieu of notice period  of 90days may not neccessarily apply to you.

 

The T&C in contract of employment should be equitable or these can easily be termed arbitray.

Can employee also decline to accept notice pay in lieu of notice period if employer has inittaed termination?

 

The employee's/trade unions in West Bengal have tradtionally been strong and support you.

IT/ITeS employees had formed union in West Bengal and were embraced by Trade Unions like CITU...................................

 

The employer on its part shall scream that you are not covered as 'Employee' ,'Workman' while your counsels may ask you a set of structured questions and may opine that you are.

Moreover it is test of law and even Supreme Court of India has laid decision in this regard.

 

Hope this shall suffice.

You may approach your able counsel with confidence and decide what is most fit for you.

 

 

 

 

Raman   13 October 2015

Originally posted by : Kumar Doab

It's a Pvt.Ltd. firm and situated in Special Economic Zone, is it covered by Shops and Est. act ? Company is in IT, BPO and Technology business and I am part of BPO.

Kumar Doab (FIN)     13 October 2015

It should be.

 

Meet the Inspector in person and find out all details.

Read SEZ policy and also IT policy of the state all including latest version.

 

Some incentives are given in SEZ and some concession from some labor laws e.g. evening shift, essential services are given.

 


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