Legal Question in Employment Law in India

Sir,I worked for a software co from 12.09.2012 to 14.10.2014.I resigned from the co on 01 10.2013 and requested to relieve on 14.10.2014.The co accepted my resignation on 07.10.2014 and was ready to relieve on 30.10.2014.But I left the co from 15.10.2014.Now the co has filed a suit in the court.Some lines from the offer letter is -(1)-You are hired as CONSULTANT to the co .......(2)After completion of probation period the management can terminate your services with one month notice or one month salary.You will be at liberty to leave the services of the company after giving one month notice.(3)It is a condition of appointment that the Employee shall, immediately on joining the co,enter into an agreement undertaking to be in continuous service in the co for a period of one year.

I served the co for one year .The co paid me FEE and not SALARY .One month salary option was not for the employee. Is the suit filed by the co legal?As the co paid me FEE treating me as CONSULTANT ,Is one month notice period binding on me? Has the co made any fraud? The co did not pay my FEE from 01.9.2014 to 14.10.2014. Please guide me.

Regards

Rahul


Asked on 8/25/14, 9:35 am

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

26.08.2014

Dear Rahul,

It can be argued that the clause regarding one month's notice period or salary in lieu thereof applies to both the parties. It is immaterial whether the Company is paying you a Fee as a Consultant or Salary as an Employee. The documents signed by you are binding on you. The 15 days notice period not served by you from 15.10.2013 till 31.10.2013 can be recovered by the Company from your full and final settlement dues from 01.09.2013 till 14.10.2013 and the Company liable to pay off and settle the balance to you.

Regards,

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Answered on 8/26/14, 4:54 am


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