Legal Question in Business Law in India

Dear Sir,

I am a 26 year old engineer working in a private organisation. The previous company which I had worked for had no legal agreement with me. In the appointment letter it was told that if company terminates me it will pay me a 3 month basic pay and if I resigned I have to serve a 3 month notice period and it would not be adjusted in terms of money.

Now I have resigned giving a 15 days notice period. They have stopped my last month salary and are not agreeing for a financial settlement since I did not serve a full 3 month notice period. I have some amount pending with them. What do I do please suggest.


Asked on 2/06/15, 12:12 am

1 Answer from Attorneys

Fca Prashant Chavan Expert Edge LLP

06.02.2015

Dear Sir / Madam,

Normally, the probation period in any organization in India is one month during probation, either remaining the same or extending to three months after confirmation. Going by your query, since the Company specifically states in your Appointment Letter that you are required to serve a three month's notice period, you should take into consideration whether you were still on probation or your services were already confirmed prior to your resigning from service. You should accordingly request the previous Company to apply the 30 days notice period norm if you had resigned whilst you were still on probation and to pay you the remaining 15 days salary due to you. If you have resigned after confirmation, you can take a stance that since the Company had the option to pay you the three months notice period salary in the event of the Company terminating your service, the same logic applies quid pro quo to you in the event you resign from the Company i.e you remain eligible to pay off the remaining 45 days notice period salary (90 days - 30 days last month salary withheld - 15 days notice period already served) to the Company and amicably resolve and close the matter. Should the Company act adament, you may politely refuse to budge from the stance you've adopted against the Company.

Regards,

Read more
Answered on 2/06/15, 1:32 am


Related Questions & Answers

More Business Law questions and answers in India