A.
Dear Client,
When a person works in an establishment for just four days, the status of such person is treated as a probationer/trainee(often paid stipend) and may not be classified as "workers" if the engagement is primarily for learning rather than performing core operational duties. So, the standing rules or regulations do not apply to the trainee/probationer unless it is specifically mentioned in the offer/appointment letter specifying that even on resignation during the probation/training, he or she has to serve a notice period or pay in lieu of notice period. As per the mandate of Section 27 of the Indian Contract Act,1872, any terms and conditions of an agreement/contract that directly or indirectly compel the employee to serve the employer or restrict them from joining a competitor or other employer are not valid. Regardless of character of employment, either permanent or temporary or probationer/trainee has the right to resign from employment to opt for a better opportunity/prospect, even if he/she has agreed to serve the employer for a specific period. If 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 and Section 74 of the Act unless such breach resulted in an actual loss or damage to the opposite party employer. So, in the prevailing situation, on receipt of demand from the company for payment in lieu of notice period, serving a legal notice, you can approach the concerned Labour Commissioner or the Inspector, Shops and Establishments, at the case may be, seeking their intervention in to the unfair labour practice adopted by the employer to resolve the matter. If required, consult or hire an Advocate specializing in service or labour laws to navigate the issue in the right way.
Posted On 27-Nov-2025
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