Employer is charging for short notice fall
1 week ago
Hi,
I will start from beginning....
When I joined this company .. company has taken sign in offers letter but in offer letter very hard to understand about notice period. Company didn't take any induction about terms and conditions of company after 1.5 years i resigned from company i want within 2 months reliving same thing I asked to hr if my client will be ok then no problem.. client has accepted the resignation and they released me . Client and payroll company doesn't have any questions on it . After 15 days i am getting Full n final settlement in that they mentioned u that u need to pay 10 thousand .. they charging me for 29 days what I didnt served it .so i questioned them why u guys didn't tell this thing
A.Dear Client,
A resignation without complying with the terms of employment i.e, service of notice period may liable an employee to face legal consequences for breach of terms of the contract. An employer can initiate a civil suit against the employee claiming damages caused by the said breach of contract. However, even if the action is taken by the employer that can be challenged by invoking Section 27 of the Indian Contract Act, 1872 which prohibits any agreement/contract in restraint of trade and profession. The law states that an agreement or contract of employment will be illegal only if it restrains someone from exercising a lawful profession/ trade/ business. As per the mandate of Section 27, any terms and conditions of an agreement that directly or indirectly compels the employee to serve the employer or puts a restriction on them joining the competitor or other employer is not valid. In the case where the employer can prove that the employee is joining the competitor to disclose the trade secret then the court may issue an injunction order restricting the employee from joining the competitor. Further, Section 73 of the Contract Act, 1872 makes provision for unliquidated damages. Section 74 of the Act deals with liquidated damages and no compensation is attracted for mere breach of contract u/s.73. or 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 a workman as defined u/s.2(s) of the Industrial Dispute Act then after serving a legal notice to the Company, you need to visit the office of the State Labour Commissioner concerned to file a complaint against the employer over alleged unfair labour practice to resolve the grievance. In case you are holding the position of Manager/Administrative Officer in the Company, you have to file a civil suit before the Civil Court for appropriate relief.
A resignation without complying with the terms of employment i.e, service of notice period may liable an employee to face legal consequences for breach of terms of the contract. An employer can initiate a civil suit against the employee claiming damages caused by the said breach of contract. However, even if the action is taken by the employer that can be challenged by invoking Section 27 of the Indian Contract Act, 1872 which prohibits any agreement/contract in restraint of trade and profession. The law states that an agreement or contract of employment will be illegal only if it restrains someone from exercising a lawful profession/ trade/ business. As per the mandate of Section 27, any terms and conditions of an agreement that directly or indirectly compels the employee to serve the employer or puts a restriction on them joining the competitor or other employer is not valid. In the case where the employer can prove that the employee is joining the competitor to disclose the trade secret then the court may issue an injunction order restricting the employee from joining the competitor. Further, Section 73 of the Contract Act, 1872 makes provision for unliquidated damages. Section 74 of the Act deals with liquidated damages and no compensation is attracted for mere breach of contract u/s.73. or 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 a workman as defined u/s.2(s) of the Industrial Dispute Act then after serving a legal notice to the Company, you need to visit the office of the State Labour Commissioner concerned to file a complaint against the employer over alleged unfair labour practice to resolve the grievance. In case you are holding the position of Manager/Administrative Officer in the Company, you have to file a civil suit before the Civil Court for appropriate relief.
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A.Dear Client,
Usually, the companies relieve the employees (without any charges) within the notice period if they do not have an ongoing project or any other commitments. This is because keeping the employee would be a burden on their payroll. The importance of notice period comes into picture when the employee is involved in an crucial project and then decides to leave suddenly, the company will charge the amount for his notice period('buy out option') or will strictly mention that they will not provide the Experience Letter, if he/she leaves the company within the notice period. This is made with an intent to retain the employee for a few more months. Further, the company would need a month or two to find another person who can fill the position and take up the responsibilities of the current employee. In this case, you claim that HR or client company did not mention that you will be charged for the remaining notice period, however verbal statements does not stand and the terms mentioned in the offer letter governs the matter and is essential to precisely answer the query.
Hope it helps.
Thank you.
Usually, the companies relieve the employees (without any charges) within the notice period if they do not have an ongoing project or any other commitments. This is because keeping the employee would be a burden on their payroll. The importance of notice period comes into picture when the employee is involved in an crucial project and then decides to leave suddenly, the company will charge the amount for his notice period('buy out option') or will strictly mention that they will not provide the Experience Letter, if he/she leaves the company within the notice period. This is made with an intent to retain the employee for a few more months. Further, the company would need a month or two to find another person who can fill the position and take up the responsibilities of the current employee. In this case, you claim that HR or client company did not mention that you will be charged for the remaining notice period, however verbal statements does not stand and the terms mentioned in the offer letter governs the matter and is essential to precisely answer the query.
Hope it helps.
Thank you.
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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,
Bannerghatta Road, Bangalore-29.
080-29753078
[email protected]
Addresses of Labor Inspectors in Bengaluru in different locations
https://karmikaspandana.karnataka.gov.in/page/Contact+Us/Labour+Inspector/en
https://clc.gov.in/clc/regional-offices/bangalore#:~:text=1.&text=Shram%20Sadan%2C%203rd%20Main%2C%203rd,Yeswanthpur%2C%20Bangalore%2D560022..
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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.]
*****
Please approach the following authority or similar authority in a state
The Office Commissioner of Labour
Karmika Bhavan, Dairy Circle,
Bannerghatta Road, Bangalore-29.
080-29753078
[email protected]
Addresses of Labor Inspectors in Bengaluru in different locations
https://karmikaspandana.karnataka.gov.in/page/Contact+Us/Labour+Inspector/en
https://clc.gov.in/clc/regional-offices/bangalore#:~:text=1.&text=Shram%20Sadan%2C%203rd%20Main%2C%203rd,Yeswanthpur%2C%20Bangalore%2D560022..
=======================================================================
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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