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Company has breached the terms of work contract

Shivendra Pratap Singh


High Court Lucknow

Service & Labour

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Question: Company has breached the terms of work contract. I have a service agreement with an employer. The contract states a 3 month notice period for termination of engagement. There is no mention of notice payment in lieu. I tendered my resignation recently. This was done on an online system. I was asked to enter the date I request to be released. It also mentioned that notice pay recovery applies. I have given a 25 day notice period and I’m willing to forego my professional fees and compensate for any further shortfall. 

My professional fees for February have been put on hold to check for pending loans/notice period shortfall. I also have 58 days worth of PL which can be encashed. The online system also mentions that PL can be adjusted for a shortfall in notice period. It has been 15 days but my manager and his manager have both ignored the resignation which was delivered to them from an online portal and a copy was sent to me. 

When I tried to engage with the HR, they told me I will have to serve the notice period and I cannot compensate in lieu.  The resignation has not been approved. How should I proceed with this?

Asked from: Karnataka

You should send a legal notice and mention the clause of the work agreement according to which the balance of PL shall be adjusted in the short fall of the notice period. 

According to this clause you have already completed the notice period. Thereafter, the company has to approve your resignation. There is no formality pending for the accomplishment of termination of engagement. 

If the company does not respond to your legal notice you should file a civil suit for the breach of work contract. There is explicit provision in the contract that the PL shall be adjusted in the shortfall of notice period. Then the company (a party to the work contract) has to comply with this clause and any refusal shall constitute breach of contract

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Shivendra Pratap Singh

Advocate (Lucknow)

I offer legal advice and representation in various fields of law, such as Criminal, Civil, Writ, Matrimonial, Service matters, Property, Revenue and SARFAESI related cases. I have experience in handling complex and challenging cases with diligence and professionalism.

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