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Dipil Kumar Vasu (Safety Professional)     26 June 2013

Regarding resignation & proper releiving

Dear Seniors I am starting this thread to help one of my friend... He needs some expert advice and looking forward to get the same from lawyersclubindia.com. He resigned on last month 29th (29.05.2013). One month notice period shall be over on 29th of this month (29.06.2013). He wants to leave the organization on 29th of thins month and he is ready to pay one month salary to the company as per the below clause in the appointment letter. Notice period / Termination Clause in the appointment letter: "The contract of employment between you and the Company may be terminated by either party by giving 2 month notice or gross monthly salary in lieu thereof. However release from the services of the company will be subject to satisfactory handover if the responsibilities assigned to you." Now the employer denying to relieve him and saying you have to work for another one month for getting proper relieving letter or else will go for legal obligations. Kindly advice: 1. What will happen if the person leaves the company without serving another one month notice period. 2. What legal action the company can take against him? 3. How he can defend the same if company took any legal action against him? Thanks & Regards, Dipil Kumar V 8826191653 dipilkumar@gmail.com


Learning

 2 Replies

Kumar Doab (FIN)     26 June 2013

 

What is this establishment: Commercial or Industrial?

Employee was located in which state and redg. office/HO of the company is in which state?

Does this company has its certified standing orders and has it extended the standing orders to employee’s designation?

 

Notice period is part of service conditions and service conditions are stated in standing orders of the company, appointment letter………………….

 

The service conditions stated in standing orders of the company can not be negated in appointment letter.

 

If the notice period is stated as 1 month in standing orders it can not be 2 months in appointment letter.

 

Notice period is also stated in Shops and Establishments Act. If notice period is stated as 1 month in the Act and 2 months in appointment letter it is obviously for the benefit of employer.

 

Proper resignation and proper handover of charge/company property should be ensured by employee, to avoid leveling of any charge by employer and legal injury………….and thus to lay a claim on proper relieving…………………

 

You have posted that:

 

-----“He resigned on last month 29th (29.05.2013). One month notice period shall be over on 29th of this month (29.06.2013). He wants to leave the organization on 29th of thins month and he is ready to pay one month salary to the company as per the below clause in the appointment letter.”

 

 

It is not clear what was the notice period tendered by employee in notice of resignation?

 

Has the employee tendered one month notice and stated in notice of resignation that the notice pay for the shortfall in notice period be adjusted in FNF statement/settlement?

 

Or if the employee has tendered 2 month’s notice but now wants to be relieved after expiry of one month?

 

 

 Employee should always attempt to give reasonable notice and thus leave no room for employer to charge the employee………………..e.g. for having caused loss.

In certain say tech specific/project specific establishments’ abrupt termination may lead to some kind of loss……………….

 

Proper handover by employee should be done.

 

Employee should at least state in writing that he/she is willing to handover the charge/company property and good offices of the company should inform to whom the charge should be handed over within and up to last day in office (of course under proper acknowledgment on the spot).

 

If employee has tendered one month notice it should be sufficient for the employer to put his house in order

.

The employee can either attach cheque for notice pay with final resignation or affirm to adjust notice pay in FNF statement/settlement.

 

If this employee is joining another company he must communicate preferably in writing that he can only provide copy of resignation and proof of its dispatch and ensure that new employer would agree to appoint without relieving letter…………..

 

-------“ Now the employer denying to relieve him and saying you have to work for another one month for getting proper relieving letter or else will go for legal obligations. “

 

Apparently the employer has not been able to install the replacement of employee………….

 

 

-------“ What will happen if the person leaves the company without serving another one month notice period.”

 

Company shall be entitled to adjust notice pay for shortfall in notice period in the form of notice pay in FNF statement/settlement…………..

 

The companies are known to resort to tactical approach, and even arm twisting e.g; declaring the employee having absconded/abandoned/abstained………………having caused loss etc…………..and block FNF settlement, relieving letter…………..etc etc……..

 

The charges have to proved.

 

 

The employee should always submit reminders subsequent to notice of resignation, final resignation on last day in office………………

 

In final resignation employee should mention all representations made so far in person, in office, by email, by letter etc…………and narrate that he/she has been clamoring to inform to whom company property and charge should be handed over and that all tasks on hand/assignments have been completed and nothing is pending to be done……………

 

Employee should apply rapport, goodwill, exceptional levels of persuasion, persistence, negotiation, reasoning skills and must try and get even from reporting manager acknowledgment of final resignation, handover of charge/company property  and that nothing is pending at the end of employee………… 

 

Employee should reply to all communications and claim that he has properly resigned and he has not absconded/abandoned/abstained……………..

 

 

-------“ What legal action the company can take against him?

How he can defend the same if company took any legal action against him?”

 

If employee has proceeded carefully and has built favorable written record employee should be able to defend his interest.

 

The charges of having caused loss etc have to be proved…………..

 

It shall be appropriate to approach a competent and experienced labor consultant/service lawyer with copies of all documents, give inputs in person, and proceed under expert advice of the lawyer.

 

You may proceed as deemed fit.

 

 

Dipil Kumar Vasu (Safety Professional)     27 June 2013

Dear Sir


Thanks for the detailed insight given on the topic... I have forwarded the same to my friend...


Once again, thanks a lot...


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