Can My Current Company Take Any Legal Actions Against Me for Not Serving My Notice Period Completely?
Employer-employee relationships are primarily based on contracts that are agreed upon by both parties. These contracts typically include terms that both the employer and employee must follow, including during the termination of employment. Serving a notice period, or paying in lieu thereof, is often a termination clause stipulated within the contract. An employer is also required to provide notice pay if they terminate an employee in accordance with their contractual obligations.
Legal Responsibilities and Consequences of Not Serving the Notice Period
Not adhering to the notice period can result in the employee being held liable for damages equal to the notice period not served. Employers may refuse to release or settle the full and final payment of the employee, or even use it to offset any amounts recoverable. It is important to know that breaching a contract could lead to legal liabilities, and the affected party can pursue legal means to recover from the erring party.
Legal Rights and Remedies in Case of Contract Violation
No legal case can be initiated unless the employee retains any company assets upon resignation. For example, if an employee fails to return company-provided devices such as a phone and laptop, the employer may criminalize the situation by registering a theft case. Similarly, if there are recovery clause terms in the contract, like relocation costs or training costs, not repaying these before resignation could result in a recovery claim.
Employer's Actions in Case of Non-Compliance
No employer can compel an employee to continue their employment if the employee no longer wishes to remain. However, employers have the right to withhold salary, variable pay, or any other outstanding amounts, including reimbursement. They can also refrain from issuing an experience letter, which can affect an employee's future employment opportunities. Employers might even consider blacklisting the employee or pushing for a negative background check.
Initiating Legal Proceedings for Outstanding Notice Pay
In the event an employee fails to serve the notice period or pay the notice pay required by their employment contract, the employer can pursue legal action to recover the outstanding amount. There are legal avenues available for companies to ensure their rights are protected.
To summarize, a mere denial of notice period typically does not attract criminal liabilities. However, it is crucial to address any specific contract clauses that may state there is a possibility of legal action and seek legal advice accordingly.