Employment contract states that either party (Employer or Employee) can terminate the contract by giving 3-months notice or pay in lieu thereof.
Company has appointed an HR Consultant who now states that while the Employee needs to give 3-months notice or pay out of his/her own pocket in case (s)he leaves early, the Employer can terminate the employee at any time after receiving resignation and need not pay the 3-months notice period to the employee. Is this valid?
From India, Bengaluru
Company has appointed an HR Consultant who now states that while the Employee needs to give 3-months notice or pay out of his/her own pocket in case (s)he leaves early, the Employer can terminate the employee at any time after receiving resignation and need not pay the 3-months notice period to the employee. Is this valid?
From India, Bengaluru
Hi
Not right. When the employee is willing to serve notice period after resignation employee should be allowed to notice period as per separation clause or compensate with pay in lieu of the same.
However if the employee make a request for early relieving employer at their discretion can consider for early relieving either with shortfall recovery or without recovery.
From India, Madras
942Not right. When the employee is willing to serve notice period after resignation employee should be allowed to notice period as per separation clause or compensate with pay in lieu of the same.
However if the employee make a request for early relieving employer at their discretion can consider for early relieving either with shortfall recovery or without recovery.
From India, Madras
Dear Paul,
I am afraid that your consultant tries to make your management happy by giving such an interpretation of the exit clause in the contract of employment. Any conditional clause in the contract of employment giving rise to mutual rights and obligations should ensure equality of interpretation and implementation to both the employer and the employee concerned. Notice condition on unilateral foreclosure of the contract of employment cannot violate this principle of equality for the simple reason that such a one-sided clause favoring the employer would be against public policy u/s 23 of the Indian Contract Act,1872.
Still one may ask why such a discretion granted to the employer in certain employment agreements to accept or reject the buy-out option of the employee. It is only to ensure the protection of the organizational larger interest by way of completion of any time-bound assignments or for securing a suitable substitute. Thus it is a different situation in which such a discretion would enable the employer to effectively apply the principles of situational management in his organizational interest..
If the employee has expressed his willingness in the letter of resignation to serve the entire notice period, the employer has no go other than accepting it. On the contrary, if the employer decides to relieve him forthwith it amounts to a counter-offer which requires the acceptance of the employee concerned. If he does not accept such a counter-offer, the employer should allow him to continue till the expiry of the notice period or should pay him the notice period salary and relieve him simultaneously. It is the correct legal position as per various case laws.
From India, Salem
I am afraid that your consultant tries to make your management happy by giving such an interpretation of the exit clause in the contract of employment. Any conditional clause in the contract of employment giving rise to mutual rights and obligations should ensure equality of interpretation and implementation to both the employer and the employee concerned. Notice condition on unilateral foreclosure of the contract of employment cannot violate this principle of equality for the simple reason that such a one-sided clause favoring the employer would be against public policy u/s 23 of the Indian Contract Act,1872.
Still one may ask why such a discretion granted to the employer in certain employment agreements to accept or reject the buy-out option of the employee. It is only to ensure the protection of the organizational larger interest by way of completion of any time-bound assignments or for securing a suitable substitute. Thus it is a different situation in which such a discretion would enable the employer to effectively apply the principles of situational management in his organizational interest..
If the employee has expressed his willingness in the letter of resignation to serve the entire notice period, the employer has no go other than accepting it. On the contrary, if the employer decides to relieve him forthwith it amounts to a counter-offer which requires the acceptance of the employee concerned. If he does not accept such a counter-offer, the employer should allow him to continue till the expiry of the notice period or should pay him the notice period salary and relieve him simultaneously. It is the correct legal position as per various case laws.
From India, Salem
Dear Mr. Umakanthan, OMG. Words cannot express the gratitude I feel towards you right now as I finish reading your definitive answer. Really appreciate your help! Thank you so much, Paul
From India, Bengaluru
From India, Bengaluru
If provision is same as you have given above i.e.,
"either party (Employer or Employee) can terminate the contract by giving 3-months notice or pay in lieu thereof".
Contention of Consultant is wholly unjustifiable and incorrect to the core.
From India, Bangalore
"either party (Employer or Employee) can terminate the contract by giving 3-months notice or pay in lieu thereof".
Contention of Consultant is wholly unjustifiable and incorrect to the core.
From India, Bangalore
Hello everyone,
I need help I have joined organisation on 4th Sept 2023 and resigned on 17th october 2023 due to culture from 18 to 31 I have served notice period but on my appointment letter there is no any clause of serve the notice period or any amount to pay but when I am asking for releasing they asking me to pay the amount of 2 month salary which is not mentioned on appointment letter and they hold my salary also of october month .currently I m suffering from typhoid and they asking me to come and complete the exit formalities please guide me
From India, Mumbai
I need help I have joined organisation on 4th Sept 2023 and resigned on 17th october 2023 due to culture from 18 to 31 I have served notice period but on my appointment letter there is no any clause of serve the notice period or any amount to pay but when I am asking for releasing they asking me to pay the amount of 2 month salary which is not mentioned on appointment letter and they hold my salary also of october month .currently I m suffering from typhoid and they asking me to come and complete the exit formalities please guide me
From India, Mumbai
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