I have resigned from my company, and the notice period is of 3 months, I am ready to serve 1 month and buyout the remaining notice period. But the company is denying from buyout. Following are the lines written in my agreement : 1. In case you have resigned or given a notice to terminate your employment, you are expected and required to diligently serve the entire notice period. However, in such a resignation situation, the Company may, at its sole discretion, without being obligated to do so, A. Require you to leave service at any time during the notice period without any payment for the balance unexpired portion of the notice period or B. Upon your request allow you to leave service during the notice period only upon You making the payment to the Company, the amount equivalent to your salary for the balance unexpired portion of the notice period.What can be done?


Terms were already explained very clearly. Therefore you can buyout the notice period and the company is not allowed to restrain youfrom paying to the company.
You are required to send anotice for compliance of contract.

Send legal notice to the concerned directors of the company calling upon them to adhere to the terms of the employment and relieve.

The Specific Relief Act says that a Contract of Personal Service cannot be enforced in a Court of Law which means that if an employee quits before the Notice period the Employer can only recover the Notice pay. No Employer can force an Employee to complete the Notice period, it is for the employee to complete the Notice period in order to take his full salary and the relieving letter.

You can leave the job by either giving notice or payment in lieu of notice.The CompanyÕs policies and procedures are the supplementary aspects. The constitution of India provides the fundamental right to every person to choose the profession of his choice and any agreement contrary to this is invalid. By putting the clause in service regulation that it is companyÕs discretion to accept the notice or not is against the provisions of constitution of India. Hence company cannot threaten you by showing this clause. The Company cannot force you to serve the entire notice period.

Reference: Industrial Disputes Act, 1947

Industrial Employment (Standing Orders) Act 1946



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