Employment-Notice Period

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. Further, Background verification(BGV) check is a process many organizations carry out in order to verify the information provided by the candidate during hiring. Verification of EPFO records through UAN is a critical process for conducting employee background checks because it allows employers to confirm that their employees are not using false or stolen identities to gain employment. In case of a negative background verification check an employer can even reject or terminate the employment of the candidate. In the given situation, to resolve the issue of overlapping in the P F records of both employers, you need to approach the office of Regional P F Commissioner who is the competent authority to resolve any anomaly arising out of date of appointment and date of discharge in EPF records. A joint declaration form is used to correct Provident Fund (PF) member details. It is a combined form that the employee and employer jointly sign and submit to the regional PF commissioner to update the wrong information entered in the employees’ PF accounts. An individual can file a complaint using the EPF i-Grievance Management System (www. https://epfigms.gov.in/). In the given scenario, for withholding of relieving letter that amounts to victimization and unfair labour practice, you have to file a complaint before the State Labour Commissioner or the Chief Inspector, Shops and Establishments Act provided you are a workman as defined under Sec.2(s) of the I D Act and to deter the possibility of a negative background check that you apprehend from your employer, you have to take up the matter with the Regl. P F Commissioner for redressal of your grievance

Dear client,
If you decide to resign from a company before your notice period ends, make sure to keep a record of all your communications and formally request a buyout of the remaining notice period. Obtain a written confirmation for the buyout and ask for a relieving letter, which is essential for your next job. Should the company report incorrect employment dates to the EPFO, you can resolve this issue by reaching out to the EPFO office or submitting a grievance through the EPFO portal. Additionally, inform your new employer about your situation, as they might be flexible with your start date. Hope our prompt support in this matter would be greatly appreciated.