Legal Guide

Legal Action Against Employee Not Serving the Notice Period In India

by Bhavya Choudhary · 4 min read

legal action against employee not serving notice period in India

Introduction

A notice period is a duration between resignation and the day when an employee last worked for any organization. The contractual agreement between an employer and employee contains terms and conditions for a specified time limit which is mandated to be served by an employee giving their resignation and leaving the organization at their wish.

Any misuse or reluctance of the regulations leads to legal action against the employee not serving the notice period in India.

What is Meant by a Notice Period?

  • It is the serving time that an employee has to serve under the obligation of the contractual agreement between employer and employee.
  • Duration is between the day the employee gave their resignation and the last working day, as mentioned in the employment agreement.
  • The time can be somewhere between 15 days to 3 months, depending on the nature of the job and the position the employee holds.
  • The employer may take legal action against an employee for not serving the notice period in India for unlawful resignation or the leak of sensitive information.
  • The level of seniority depicts the days of the notice period because high seniority means more days to be completed and vice-versa.
  • The authority of the organization may take legal action against the employee not serving the notice period in India. 

Lawful Standpoint

  • There are certain significant restrictions on the organization and the employer against forcing any level of employee to serve a specific notice period unless there is a written contract between the two parties with any clause mentioning the same.
  • The law provisions and regulations as per the labor law talk about and consist of compensation, notice period, and the necessary legal action against employees not serving notice period in India.
  • The fundamental rights deciphered by the Constitution of India are crucial to understanding the actions and necessary steps a citizen can take in a legal way.

Legal Action against the Employee not Serving the Notice Period in India.

  • As per the Specific Relief Act 1963, there is a restriction and limit on the enforcement of any personal service contract to be presented in a court of law.
  • This means that the employer has limited action to claim any recovery “in lieu of” the notice period given. This whole process depends on the employee.
  • Suppose they want to honor this opportunity for his/her full pay and a relieving letter. Section 41 of the act provides relief to a party with enough proof against the opposite party or to take legal action against an employee not serving the notice period in India.
  • As per the Indian Contract Act Section 27, The agreements through which anyone is restricted from entering into any profession, trade, service, or business are not valid.
  • Any contract of employment or employment agreement is legally binding for both the employer and employee on different terms and conditions.
  • If there exists a separation clause with the word “in lieu of” that relates to payment against the notice period, in this context, the employer cannot take legal action against an employee not serving the notice period in India and cannot pressurize an employee to continue working or serving the notice period or if they are willing to give up their salary against it.
  • The employer is obligated to provide a relieving letter in these similar cases and cannot take legal action against an employee not serving a notice period in India. 
  • The only condition required is that proper clearance must be forwarded as per the rules and regulations of the organization.
  • Certain Fundamental Rights are provided to the people of India by the Constitution of India as in Article 19, which protects their rights as a citizen to work under any trade, or business or start a business, profession, occupation, etc. and also protects them from legal action against the employee not serving the notice period in India.
  • Article 13 mentions that the agreements are deemed void if they clash or are against the aforementioned fundamental rights of any citizen.
  • The working employees can approach the High Court or Supreme Court if wrongful legal action against an employee not serving the notice period in India is used or prescribed intentionally derogatory.

Necessary Steps or Remedies for an Organisation

  • In cases where an employee suddenly resigns and is seeking to exit the job early without any prior arrangement or notice and is not serving the required notice period, it harms the entire work process, output, management, and efficiency.
  • Many other significant changes and damages unknowingly happen in sudden relieving hindrance. HR needs to rush to find someone suitable to replace the vacant position as soon as possible or take legal action against the employee not serving the notice period in India.
  • The problems are much more serious if the person who is resigning is a part of the core data handler or knows sensitive information and passwords.
  • There might be a possible leak of prohibited data from the leaving employee, and so HR must make sure to save the interests and assets of the organization by taking necessary legal action against the employee not serving the notice period in India.
  • The employer should clearly state the company rules and regulations along with every term and condition that might be needed for the period the employee serves and what follows when he/she resigns.
  • They must mention why legal action against the employee not serving a notice period in India might be taken as the company deals with sensitive information through the employees.
  • The employees may take legal help by hiring a lawyer online and understanding how each clause works and what it defines to avoid future complications and disputes.
  • The employer should try to add a buyout clause somewhere in the contract to give the resigning employee some flexibility and an acceptable notice period for their interest, too, and to add a new professional promptly and avoid legal action against the employee not serving the notice period in India.
  • The employee should treat every employee fairly, even if one wants to leave the organization for personal reasons.
  • They must be acknowledged, and chances to take legal action against employees not serving notice periods in India can be avoided. The employer and employee can hire a lawyer online to review their contract for better assessment.

Conclusion

HR has the main goal of maintaining the workflow and order in the organization by managing the outgoing and incoming employees with fair treatment and robust inter-scale management. This can help reduce the number of legal actions against the employee not serving the notice period in India.

If any employer or employee has any kind of trouble deciphering any clause in the contract, they can hire a legal professional who can sort out their queries on time.

Bhavya Choudhary

Written by

Bhavya Choudhary

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