Hi,
i joined a startup advertising agency on Dec 22, 2014 as a director and one of the founder member. i left the agency at march 19, 2015. i worked there approximately for little less than 3 months.
My offer letter mentioned probation for 6 months, which i never crossed. so technically i was not confirmed employee.
I never got an appointment letter as well.
in the same offer letter my notice period was mentioned as 2 months, but i didn\'t server the entire notice period, assuming that until i am not confirmed i am not bound to server full notice. i was ready to serve 3 weeks notice but one of the partner asked me to getting my self revealed with in 4 days of notice period.
now they have send me a mail with the full & final statement asking recovery for 2 months salary (minus the 4 days notice period).
i need to know
1. AM I LEGALLY BOUND TO PAY THE MONEY?
2. IF YES THAN WHAT PART OF THE SALARY IS RECOVERABLE FROM THE EMPLOYEE, I SUPPOSE ITS ONLY THE BASIS PAY?
3. VERY IMP POINT - THIS COMPANY WAS REGISTERED BUT THEY WERE NOT PAYING PROVIDED FUND. THE REASON THEY GAVE THAT THEY CAN AVOID TO DO SO COS THERE ARE VERY LESS NO OF EMPLOYEE AT THIS POINT AND TO PAY PF THEY HAVE TO CROSS A CERTAIN NO OF EMPLOYEE COUNT.
4. THERE IS NOWHERE MENTIONED ABOUT THE NOTICE PERIOD DURING THE PROBATION PERIOD IN THE OFFER LETTER.
From India, Mumbai
1i joined a startup advertising agency on Dec 22, 2014 as a director and one of the founder member. i left the agency at march 19, 2015. i worked there approximately for little less than 3 months.
My offer letter mentioned probation for 6 months, which i never crossed. so technically i was not confirmed employee.
I never got an appointment letter as well.
in the same offer letter my notice period was mentioned as 2 months, but i didn\'t server the entire notice period, assuming that until i am not confirmed i am not bound to server full notice. i was ready to serve 3 weeks notice but one of the partner asked me to getting my self revealed with in 4 days of notice period.
now they have send me a mail with the full & final statement asking recovery for 2 months salary (minus the 4 days notice period).
i need to know
1. AM I LEGALLY BOUND TO PAY THE MONEY?
2. IF YES THAN WHAT PART OF THE SALARY IS RECOVERABLE FROM THE EMPLOYEE, I SUPPOSE ITS ONLY THE BASIS PAY?
3. VERY IMP POINT - THIS COMPANY WAS REGISTERED BUT THEY WERE NOT PAYING PROVIDED FUND. THE REASON THEY GAVE THAT THEY CAN AVOID TO DO SO COS THERE ARE VERY LESS NO OF EMPLOYEE AT THIS POINT AND TO PAY PF THEY HAVE TO CROSS A CERTAIN NO OF EMPLOYEE COUNT.
4. THERE IS NOWHERE MENTIONED ABOUT THE NOTICE PERIOD DURING THE PROBATION PERIOD IN THE OFFER LETTER.
From India, Mumbai
Dear Ishantgopa,
It is clearly stipulated in the offer letter that is two months, and your probation period is for six months,normally appointment letter will be given to the employee on completion of the probation period, in case the employee dos not receive the appointment letter after completion of six months but still he/she continues to work in the organization, it is deemed that the services are confirmed.
But in your case you have not completed even three months of service in the said organization and have left the job with out serving notice period, is a clear violation of contract agreement on your part and hence the management has the right to collect the entire amount of your two months salary
Thanks
From India, Bangalore
It is clearly stipulated in the offer letter that is two months, and your probation period is for six months,normally appointment letter will be given to the employee on completion of the probation period, in case the employee dos not receive the appointment letter after completion of six months but still he/she continues to work in the organization, it is deemed that the services are confirmed.
But in your case you have not completed even three months of service in the said organization and have left the job with out serving notice period, is a clear violation of contract agreement on your part and hence the management has the right to collect the entire amount of your two months salary
Thanks
From India, Bangalore
Dear Raghunath sir,
I was going through some other threads and most of the members mentioned that until the employee is confirmed he/she can leave the organization without serving a notice and legally organization are not entitled to recover the money. the organization is only entitled to recover the money if the employee is confirmed and not served the notice period. Please let me know if this is not right ?
thanks
From India, Mumbai
I was going through some other threads and most of the members mentioned that until the employee is confirmed he/she can leave the organization without serving a notice and legally organization are not entitled to recover the money. the organization is only entitled to recover the money if the employee is confirmed and not served the notice period. Please let me know if this is not right ?
thanks
From India, Mumbai
Since you appear to have worked in Mumbai, you are governed by Bombay Shops and Establishment Act and Rules. Since you were under probation and having worked for less than six months you will be treated to be under probation vide rule 3 of the said Bombay rules. Under rule 4 services of a probationer can be terminated at any time without any notice. A contractual clause denuding you the right to resign immediately without notice will be discriminatory and arbitrary. Any appointment letter contrary to the Act and rules unless it is more beneficial to employee is void as per section 69 of the Act. Further under Payment of Wages Act as applicable under section 38 of the Bombay Act, no deduction of any kind is permissible unless authorized under the Act. The employer cannot make any recovery under the garb of notice period recovery which is not valid. Thus even though you were not issued appointment letter, yet you are governed by the above statutory provisions. Ignoring these provisions, by the way did you mention in your resignation letter that as per the directions of the employer you were tendering resignation but wanted to serve for 3 more weeks. The employer had thus accepted your resignation with the above condition. If that is so the employer forced you to commit breach of contract and your liability under contract is negated.
Thanks
Sushil
From India, New Delhi
Thanks
Sushil
From India, New Delhi
During probation your service can be terminated without notice.
This is my understanding.
Question of recovery/notice period does not therefore arise.
Give them a polite reply drawing attention to your probationary status.
Do not add or include other topics which divert attention and is your additional back up arguments in case the issue takes legal turn.
From India, Pune
This is my understanding.
Question of recovery/notice period does not therefore arise.
Give them a polite reply drawing attention to your probationary status.
Do not add or include other topics which divert attention and is your additional back up arguments in case the issue takes legal turn.
From India, Pune
Raising all relevant grounds in reply to legal notice is essential otherwise you are deemed to have accepted the validity of agreement. See Shyamalabai v Ramkishan of Bombay HC and other decisions.Reply to notice containing these grounds can also be taken politely but when litigation process has been initiated by employer through legal notice all legal and factual pleas be taken to snub the proposed plaintiff.
Thanks
Sushil
From India, New Delhi
Thanks
Sushil
From India, New Delhi
Yes i have sent a mail to serve for 2 weeks notice, but they ask me to leave with in 4 days, saying that they will save salary money as its a new start up.
i dropped 2 mails .. one is for resignation, which mentioned 2 weeks notice and another one when i got left the company after 4 days of my resignation stating that "with our mutual agreement my last day today" but unfortunately they didnt reply on wither of the mail.
i do have releving letters and experience letter and NOC letter. these i secured on the day i left.
simply put in one line, do i have any legal ground on which i can deny to pay the money. or should i go ahead and pay the money and spare my self from this mental stress
Please suggest
From India, Mumbai
i dropped 2 mails .. one is for resignation, which mentioned 2 weeks notice and another one when i got left the company after 4 days of my resignation stating that "with our mutual agreement my last day today" but unfortunately they didnt reply on wither of the mail.
i do have releving letters and experience letter and NOC letter. these i secured on the day i left.
simply put in one line, do i have any legal ground on which i can deny to pay the money. or should i go ahead and pay the money and spare my self from this mental stress
Please suggest
From India, Mumbai
My opinion:
Personally I feel that the demand of company is incorrect(From what you mentioned ).
To do the right thing sometimes involves taking a stand..
Politely just sum up the events which have taken place and decline to pay
Off course easy way is pay up and close the topic.
Please take proper legal advice if you feel fit.
.
From India, Pune
Personally I feel that the demand of company is incorrect(From what you mentioned ).
To do the right thing sometimes involves taking a stand..
Politely just sum up the events which have taken place and decline to pay
Off course easy way is pay up and close the topic.
Please take proper legal advice if you feel fit.
.
From India, Pune
Besides the ealier grounds stated in the thread, since you stated that because of mutual agreement you submitted for relieving to which the employer did not reply, he must be deemed to have accepted it. So your employer has waived off notice period even. You are not liable to pay any notice period money in these circumstances.
Thanks
Sushil
From India, New Delhi
Thanks
Sushil
From India, New Delhi
To Mr.
August 1, 2012
Dear Mr,
Please find enclosed herewith your final settlement on separation as per terms of appointment.
We wish to state that you have to pay Rs. ........../- to the Company on final settlement. Please arrange to pay the amount immediately to complete your relieving formalities.
The cheque may be made in favor of “Laborate Pharmaceutical India Ltd. ” and handed over to our representative at Paonta Sahib Office.
Thanking you,
Yours truly,
From India, New Delhi
August 1, 2012
Dear Mr,
Please find enclosed herewith your final settlement on separation as per terms of appointment.
We wish to state that you have to pay Rs. ........../- to the Company on final settlement. Please arrange to pay the amount immediately to complete your relieving formalities.
The cheque may be made in favor of “Laborate Pharmaceutical India Ltd. ” and handed over to our representative at Paonta Sahib Office.
Thanking you,
Yours truly,
From India, New Delhi
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GST ON RECOVERY OF UNSERVICED NOTICE PERIOD.docx
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