Show cause notice from TCS Show cause notice from TCS

1 month ago

My spouse resigned from TCS four days after she joined because she accepted an offer from another company. However, TCS mandates that she serve a 3-month notice period, which is impossible as she has already joined another company. TCS has sent her repeated emails but has yet to respond to them. Today, she received a physical letter having a show cause notice from TCS stating that her resignation was not accepted as she did not serve the notice period, and disciplinary action will be taken against her. What should she do?

Legal Counsel Vidhikarya

Responded 1 month ago

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A.Dear Client,
As per the mandate of Section 27 of the Indian Contract Act,1872, any terms and conditions of an agreement that directly or indirectly compels an employee to serve the employer or puts a restriction on them joining the competitor or other employer is not valid. The employee has the right to resign from the employment for better opportunity, even if he/she has agreed to serve the employer for a specific period. In the case where the employer can prove that the employee is joining the competitor to disclose the trade secret or technical know-how then the court may issue an injunction order restricting the employee from joining the competitor. Further, Section 73 of the Act makes provision for un-liquidated damages (not stipulated in a contract), Section 74 deals with liquidated damages (stipulated in a contract) 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. A show cause notice threatening disciplinary action against an employee who tenders her resignation without following the terms of employment cannot be considered misconduct unless it is expressly specified in the service rules or the certified standing orders of the Company. Thus action of the company is vindictive in nature to exploit the career of an employee with ulterior motives and such a baseless action is not expected from a company like TCS. An employee can inform the top management about the vindictive action seeking a waiver of notice period considering future prospects of the employee, which may hopefully work. However, in the prevailing situation, a strong reply to the show cause notice of the company shall be made and a grievance/complaint be filed before the concerned Labour Commissioner over alleged victimization and unfair labour practices to get the show cause notice withdrawn if agreed on payment in lieu of notice period because a stigma of show cause or disciplinary action adversely affects and damages the career of an employee. Feel free to contact our expert professional team to navigate the issue in the right way.
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Vidhi Samaadhaan Vidhi Samaadhaan

Anik

Responded 1 month ago

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A.Dear client, if there is any mutual joining agreement between your wife and TCS, then she should bound by that agreement. If there a mandatory notice serving then she should give it before leaving the job. If not given then the company can take any action enumerated in the agreement.
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Kishan Dutt Kalaskar

Responded 1 month ago

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A.Dear Sir
Please approach the following authority or similar authority in a state


The Office Commissioner of Labour
Karmika Bhavan, Dairy Circle,


Section 12 in The Industrial Disputes Act, 1947
12. Duties of conciliation officers.- (relevant section 12(2) of ID Act)

(1) Where any industrial dispute exists or is apprehended, the conciliation officer may, or where the dispute relates to a public utility service and a notice under section 22 has been given, shall hold conciliation proceedings in the prescribed manner.

(2) The conciliation officer shall, for the purpose of bringing about a settlement of the dispute, without delay, investigate the dispute and all matters affecting the merits and the right settlement thereof and may do all such things as he thinks fit for the purpose of inducing the parties to come to a fair and amicable settlement of the dispute.

(3) If a settlement of the dispute or of any of the matters in dispute is arrived at in the course of the conciliation proceedings the conciliationofficer shall send a report thereof to the appropriate Government 1 or an officer authorised in this behalf by the appropriate Government] together with a memorandum of the settlement signed by the parties to the dispute.

(4) If no such settlement is arrived at, the conciliation officer shall, as soon as practicable after the close of the investigation, send to the appropriate Government a full report setting forth the steps taken by him for ascertaining the facts and circumstances relating to the dispute and for bringing about a settlement thereof, together with a full statement of such facts and circumstances, and the reasons on account of which, in his opinion, a settlement could not be arrived at.

(5) If, on a consideration of the report referred to in sub- section (4), the appropriate Government is satisfied that there is a case for reference to a Board, 2 Labour Court, Tribunal or National Tribunal,] it may make such reference. Where the appropriate Government does not make such a reference it shall record and communicate to the parties concerned its reasons therefor.

(6) A report under this section shall be submitted within fourteen days of the commencement of the conciliation proceedings or within such shorter period as may be fixed by the appropriate Government: 3 Provided that, 4 subject to the approval of the conciliation officer,] the time for the submission of the report may be extended by such period as may be agreed upon in writing by all the parties to the dispute.]

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