I used to work for a Multinational Firm as a permanent employee for almost 10 years in Middle Management. I was forced to resign in January this year based on my performance rating of the previous company. The Company relieved me on the same day. I gave resignation with 3 Months notice as per my employment letter and with an understanding from HR that the full 3 Months' salary would be paid but later reduced to 1 Month after submitting the resignation, which I refused to accept.
The Company delayed F&F for almost 6 Months. In F&F, the company proposed to pay 1 Month Salary and recover 2 Months' salary. After a lot of argument over email, the company agreed to pay 1 Month Salary without any recovery, Gratuity, and performance pay.
On my demand for 2 Months' pay and compensation, the HR department claims that adequate notice has been given and 1 Month payout is given as per the agreement. But there is no written or email communication in this regard. The Company now says that F&F was settled as per company record and warned to refrain from encroaching on the Company time further, failing which the company will be constrained to take appropriate action against me.
I want to know from senior members:
1. Whether termination is illegal as I was not allowed to serve the notice period.
2. The law under which such disputes are covered as I was in the managerial cadre.
3. Whether I am right in demanding an additional 2 months' pay and compensation.
Please also advise on the further course of action or drop the matter if I am wrong.
From India, Noida
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The Company delayed F&F for almost 6 Months. In F&F, the company proposed to pay 1 Month Salary and recover 2 Months' salary. After a lot of argument over email, the company agreed to pay 1 Month Salary without any recovery, Gratuity, and performance pay.
On my demand for 2 Months' pay and compensation, the HR department claims that adequate notice has been given and 1 Month payout is given as per the agreement. But there is no written or email communication in this regard. The Company now says that F&F was settled as per company record and warned to refrain from encroaching on the Company time further, failing which the company will be constrained to take appropriate action against me.
I want to know from senior members:
1. Whether termination is illegal as I was not allowed to serve the notice period.
2. The law under which such disputes are covered as I was in the managerial cadre.
3. Whether I am right in demanding an additional 2 months' pay and compensation.
Please also advise on the further course of action or drop the matter if I am wrong.
From India, Noida
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Dear NESRI,
The termination of your employment on the alleged resignation is illegal apart from your allegation of it being a forced one. By compulsion or otherwise, when you've tendered your resignation, that too prospectively in writing; hence, it is very difficult to prove now that it was a forced one.
Coming to the part of your resignation as it is apparent, it is a prospective resignation that would be effective only from the future date mentioned therein irrespective of its actual date of acceptance by your employer. On the contrary, the Company has relieved you on the same day of submission of your resignation and also refused to pay the salary for the notice period though you expressed your willingness to be in its service for 3 months. A resignation tendered to take effect from a future date will be in an inchoate state until the specified date expires. Here I would like to quote the following observation of the honorable High Court of Andhra Pradesh in Coromandel Fertilizers Ltd. vs P.Venugopal [1986 (I) LLJ 417]:
"The letter of resignation is a 'form of an offer' by the employee and hence it is open to the management to accept or reject the same. But it is not open to the management to accept the resignation from a different date other than what was offered because such an acceptance would amount to a counter-offer which again requires acceptance from the employee."
You have to file a Civil suit against the management for breach of the terms of the contract and claim damages.
Yes.
From India, Salem
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6185The termination of your employment on the alleged resignation is illegal apart from your allegation of it being a forced one. By compulsion or otherwise, when you've tendered your resignation, that too prospectively in writing; hence, it is very difficult to prove now that it was a forced one.
Coming to the part of your resignation as it is apparent, it is a prospective resignation that would be effective only from the future date mentioned therein irrespective of its actual date of acceptance by your employer. On the contrary, the Company has relieved you on the same day of submission of your resignation and also refused to pay the salary for the notice period though you expressed your willingness to be in its service for 3 months. A resignation tendered to take effect from a future date will be in an inchoate state until the specified date expires. Here I would like to quote the following observation of the honorable High Court of Andhra Pradesh in Coromandel Fertilizers Ltd. vs P.Venugopal [1986 (I) LLJ 417]:
"The letter of resignation is a 'form of an offer' by the employee and hence it is open to the management to accept or reject the same. But it is not open to the management to accept the resignation from a different date other than what was offered because such an acceptance would amount to a counter-offer which again requires acceptance from the employee."
You have to file a Civil suit against the management for breach of the terms of the contract and claim damages.
Yes.
From India, Salem
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Sir,
Thank you for the insight. Two more things I would like to know:
1. Any recent judgments or observations of the court on such matters.
2. Which laws are violated by the company? There are various laws like the Contract Labor Act, Shop and Establishment Act, or the Industrial Dispute Act.
Regards
From India, Noida
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Thank you for the insight. Two more things I would like to know:
1. Any recent judgments or observations of the court on such matters.
2. Which laws are violated by the company? There are various laws like the Contract Labor Act, Shop and Establishment Act, or the Industrial Dispute Act.
Regards
From India, Noida
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