Regisnation and termination
6 months ago
I verbally resigned from my last job due to a argument between me and my manager. Now they sent me a final settlement email regarding not serving notice period and demand 2 months of salary in penalty. No where in my employment terms it is stated that in case of not serving notice period I would have to pay penalty or anything like that, only that in such case I won't be given releaving letter. Now they are threatening me to take legal actions against me. What should I do?
A.Dear Client,
As stated by you, in the absence of any specific stipulation in the contract of employment. an employer cannot demand two months' salary as a penalty for breach of contract for non-submission of a resignation application or not serving the notice period. But usually, an employee is required to tender his resignation in writing with 30 days of notice before leaving the service of an employer as per model standing orders under the Industrial Employment(Standing Orders) Act. 1946. Further, Section 73 of the Contract Act, 1872 makes provision for unliquidated damages, and Section 74 deals with liquidated damages and no compensation is attracted for mere breach of contract u/s.73. 74 of the Act unless such breach resulted in an actual loss or damage to the opposite party employer. So, in the prevailing situation, if you are not holding the position of Manager/Supervisor but a workman as defined u/s.2(s) of the Industrial Dispute Act then after serving a legal notice to the Company, reach out to the office of the Labour Commissioner concerned for filing a complaint against the employer over alleged unfair labour practice to resolve the grievance.
As stated by you, in the absence of any specific stipulation in the contract of employment. an employer cannot demand two months' salary as a penalty for breach of contract for non-submission of a resignation application or not serving the notice period. But usually, an employee is required to tender his resignation in writing with 30 days of notice before leaving the service of an employer as per model standing orders under the Industrial Employment(Standing Orders) Act. 1946. Further, Section 73 of the Contract Act, 1872 makes provision for unliquidated damages, and Section 74 deals with liquidated damages and no compensation is attracted for mere breach of contract u/s.73. 74 of the Act unless such breach resulted in an actual loss or damage to the opposite party employer. So, in the prevailing situation, if you are not holding the position of Manager/Supervisor but a workman as defined u/s.2(s) of the Industrial Dispute Act then after serving a legal notice to the Company, reach out to the office of the Labour Commissioner concerned for filing a complaint against the employer over alleged unfair labour practice to resolve the grievance.
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A.Dear Client,
If your employer is found to be in violation of your employment contract, you can approach the labour court. If your employer proceeds with legal action, engage a lawyer to develop a defense strategy.
If your employer is found to be in violation of your employment contract, you can approach the labour court. If your employer proceeds with legal action, engage a lawyer to develop a defense strategy.
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