Legal Question in Employment Law in India

I had joined my present company on Aug 3, 2015. I would like to resign by Aug 5th, 2016. If I give notice on may 3rd, will I still get the 3 months pay asking with the variable pay that I should get at the end of 1 year?

These are the terms I had signed at the time of joining:

If in any case of resigning the job you have to give a prior notice to the

organization before 3 months.

Also if in case you leave the company within a year, the last month�s

salary during your tenure in the Company will not be paid and the

accumulated leave balance will not be paid to you. Employee should be active on rolls of organization during time of payout ie., should not have resigned/serving notice period.


Asked on 4/19/16, 6:39 am

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

19.04.2016

Dear Sir / Madam,

If one is to interpret the terms from a legality perspective, the clause regarding last month's salary not being paid to the employee is invalid, null and void, for the simple logic and reason that the employer remains liable to pay wages / salary to the employee for each and every day or part thereof worked by the employee in the factory / establishment. Likewise, an employee who has resigned from service to be completing a year as on his / her last working day in the organization is also an "active" employee. So, if you decide to give notice of your resignation to the Company on 03 rd May, 2016 asking to be relieved from service on 02 nd August, 2016, you would have effectively completed a year's service in the organization as on your last working date, entitling you to receive the full three month's notice period salary plus all leave and variable pay and any bonus or incentive announced and declared by the Company whilst you were "active".

Regards,

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Answered on 4/19/16, 10:33 am


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