A.
Dear Client,
Usually, almost all offer/appointment letters contain a common clause for serving a notice period that ranges between 30 to 90 days or pay in lieu of notice period post-resignation by the employee. Some organisations introduce a provision of a buyback policy in respect of a notice period post-resignation, extending the scope to an outgoing employee to cope with urgency. In your case, having such a buyback policy, if the company refuses to waive your notice period that may be considered unfair labour practices. However, the actions of the management can be challenged based on Section 27 of the Indian Contract Act,1872, which prohibits any agreement in restraint of trade and profession. As per the mandate of Section 27 of the Indian Contract Act,1872, any terms and conditions of an agreement that directly or indirectly compel the employee to serve the employer or put a restriction on them joining the competitor or other employer is not valid. The employee has the right to resign from the employment even if he has agreed to the employment bond 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, 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. So, in the prevailing situation, if you are not holding a position of manager or supervisor in the Company, but a workman as defined under Sec.2(s) of the Industrial Dispute Act, 1947. serving a legal notice to the Company reach out to the office of the concerned Labour Commissioner or the office of the Chief Inspector, Shops and Establishments, as the case may be, to file a complaint against the company over alleged unfair labour practice for redressal of your grievance, Further, SAMADHAN Portal was launched by the Ministry of Labour and Employment to facilitate the filing of industrial disputes by the workmen, employers and trade unions under the Industrial Disputes Act, 1947. The online portal has a user-friendly interface and has enhanced transparency and efficiency of grievance resolution for all stakeholders. The workmen/trade unions/management can file their disputes and claims by logging into the portal through the UMANG app and also by visiting the nearest Common Services Centres. But, if you are holding the position of Manager or Administrator in the Company, you have to file a civil suit against the Company before the Civil Court seeking appropriate relief in the matter. In case, you are an employee of the IT Company then be informed that to restrict IT Companies from exploiting their employees by playing double standards, the Division Bench of the Karnataka High Court in the case of Commissioner of Income Tax v. Texas Instruments India Pvt Ltd (2021) 435 ITR unambiguously held that the IT sector employees considered to be "workmen" under Section 2(s) of the Industrial Dispute Act, 1947. If required, hire an Advocate experienced in service matters to navigate the issue in the right way.
Posted On 17-Mar-2025
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