- This topic has 8 replies, 5 voices, and was last updated 1 year, 2 months ago by
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FHi everyone,
I submitted my resignation today, and my manager informed me that my last working day will be **this Friday**, even though my **offer letter clearly states a 2-month notice period**. The offer letter also mentions that if the company decides on early relieving, they **may pay salary in lieu of notice**. I am attaching the statement from my offer letter here:
*”You or the Company may terminate this Agreement by giving the other party, [2 (two) months’] written notice. The Company may alternatively be entitled to pay the Employee salary in lieu of such notice. Any resignation would have to be accepted by the Company to become effective.”*
However, when I checked with HR, they told me that since they are relieving me early, I **will not receive salary for the remaining notice period**. This decision was made **entirely by the company**—I never requested an early release.
I want to understand whether this is **legally allowed under Indian labour laws**. My understanding was that if the company chooses to relieve an employee before the notice period, they are **required to pay for the remaining period** unless there is a clause stating otherwise.
1. **Is my employer legally allowed to deny salary for the unserved notice period?**
2. **Which Indian labour law or Act provision applies to this situation?**
3. **What are my options if they refuse to pay?**Any guidance or similar experiences would be really helpful. Thanks in advance!
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SNAL
I guess if the company wants to remove you from your job they can either give you 2 months notice or 2 months pay. In this case, you want to terminate the agreement and have given them notice for 2 months and I believe it’s upto them whether they want to keep you for those entire 2 months or relieve you before that.
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BLawyer from Delhi here.
Based on the clause you shared, the company cannot relieve you early without either your consent or compensation for the unserved notice period. The offer letter states that termination by either party requires two months’ written notice. It also gives the company the option to pay salary in lieu of notice. This means if they choose to waive the notice period, they are effectively ending the contract early, and must compensate you for that period unless the clause clearly says otherwise, which it does not.
This situation is governed by contract law, not labour law per se. The Indian Contract Act applies here. There is no statutory rule under Indian labour laws that directly mandates a notice period for white-collar or managerial employees, so the terms of your offer letter will guide the outcome. If the company unilaterally reduces your notice period and refuses to pay for the remaining time, they are likely in breach of contract.
You should write formally to HR and your manager, making it clear that early relieving is not at your request and that you expect salary for the remainder of the notice period as per your contract. If they refuse, you can send a legal notice and pursue recovery through labour court (or civil court, depending on the facts of your case).
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AIf you initiated resignation from your end, they are not liable to pay anything. They can waive off the notice as per their will. If you have not resigned and they want to terminate/lay off, they need to pay the 2 months basic pay at least.
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AYes, once you put resignation, that means you want to leave willingly. Now as per the employment contract you are obligated to serve notice period. The employer can waive off the notice if they want. In that case they do not need to pay you.
Second scenario is that employer wants to terminate you, then they have to give you pay equal to the notice period at least.
So, never put papers under pressure from hr/management. They are just trying to get away from paying the notice pay/ severence.
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