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Can employers claim compensation from employees who do not serve notice period?

i Saikat Sengupta
Category: Others
Date: 14/04/2011
Tags:
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If my employer asks me to sign on an agreement on plain paper, how much legal value does it have? Can an employer actually stop the release order? As an independent citizen I can decide any time whether I would continue with a job or not.

Does the employer have any legal right to stop me OR ask me to pay compensation?

posted by Saikat Sengupta | suggest edit

Yes

Can employers claim compensation from employees who do not serve notice period?

No

Can employers claim compensation from employees who do not serve notice period?

DEBATE

add your argumensts in favor or against the issue

arguments supporting the issue
arguments against the issue

Ethically an employee should serve notice period if that was mentioned in the appointment letter.

If the initial agreement says that the employees should pay compensation if they quit without serving notice period then the employer can claim money and stop release order.

If the employer has spent money to train the employees, the employees must compensate the cost if they decide to quit early.

posted by Saikat Sengupta | suggest edit

Independent citizens have all the rights to choose whether they would work with an employer or not.

Agreement not signed on stamp paper does not have any legal weight.

There can be real serious reasons when an employee decide to quit, such as health problems, marriage, psychological issues etc. Employers cannot force them or ask them to compensate for the loss.

posted by Saikat Sengupta | suggest edit

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Hi , This happened with my wife too. She was working in BPO, Due to serious health issues, had to take bed rest. She communicated to hear team lead and immediate leader They asked to come down and submit all things . I personally went with her, but was unable to make it inside office. They took her access card as well as medical reports too, and asked to come down next day for remaining clearance, that also shocking 10 pm night . Next two days we went to office ,nothing happened. Now yest she received compensation of 58000/- (2 months absent charges 33000/- and Notice period-27000/-). It was clearly mutual closure of job, since that day afetr no calls to join office or arranged pick-up drop for my wify. My wifes mistake is that she didnt took proper clearance of admin dept and hr department.

Posted by mujawaranjum on 24/01/2013 at 12:23 AM

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I was working for a store named Tamnna at Commercial Street Bangalore as a Store Manager, but I never got an appoinment letter or payslip or anything that confirms my job, no motivation, physical torture, mental torture everything was taking place there....I was feeling like a slave and no proper appraisal or nothing.... I just had enough and got a better opportunity and left that job without any notice period, just sending a resignation letter via mail. Now they sent me a legal notice claiming money that too 8 lakhs.... me and my husband are staying here in bangalore for job purpose and we are far away from my native....please advise what should i do under this circumstances..

Posted by Debraj Tarafder on 10/07/2012 at 08:32 AM

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My name is Nibedita, I posted this from my husband's FB account

Posted by Debraj Tarafder on 10/07/2012 at 08:33 AM

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Hi Nibedita, You can consult labor forum. And since you got no appointment letter or any payslip, you dont have to worry. Anyways If you share on what basis they are claiming 8 lakhs?

Posted by Mithilesh Kumar on 13/07/2012 at 12:23 AM

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I always am impressed with a candidate who says "I need to be there. I need to Finish my work andthen join you. It will take 1 month or 2 months" than someone who says "I need a month's notice, but I can wiggle out in a week". Guess what? That's exactly what this person will do to you when they leave you and go to another employer! I am not for asking compensation back for earlier leaving, but it will be very difficult for this person to get a Salary or Service Certificate from me very easily. If I don't need that person to be around I don't mind letting them go but if they have promised the other employer unreasonable joining periods and they are trying to convince me to go along with it, I will play hardball! Happened to me numerous times!

Posted by Nari Kannan on 20/04/2011 at 02:19 AM

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I always am impressed with a candidate who says "I need to be there. I need to Finish my work andthen join you. It will take 1 month or 2 months" than someone who says "I need a month's notice, but I can wiggle out in a week". Guess what? That's exactly what this person will do to you when they leave you and go to another employer! I am not for asking compensation back for earlier leaving, but it will be very difficult for this person to get a Salary or Service Certificate from me very easily. If I don't need that person to be around I don't mind letting them go but if they have promised the other employer unreasonable joining periods and they are trying to convince me to go along with it, I will play hardball! Happened to me numerous times!

Posted by Nari Kannan on 20/04/2011 at 02:19 AM

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I have a question: how much legal value any agreement has that is not made on stamp paper?

Posted by Saikat Sengupta on 16/04/2011 at 12:30 AM

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I think priyanka gave your answer... its "just an arbitrary rule which is not enforceable"

Posted by Sumana Chakraborty on 16/04/2011 at 12:39 AM

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I think priyanka gave your answer... its "just an arbitrary rule which is not enforceable"

Posted by Sumana Chakraborty on 16/04/2011 at 12:39 AM

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In that case if the employer stops the release order and asks the employee that either he has to serve notice period or compensate what rights the employee has?

Posted by Saikat Sengupta on 16/04/2011 at 12:54 AM

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In that case if the employer stops the release order and asks the employee that either he has to serve notice period or compensate what rights the employee has?

Posted by Saikat Sengupta on 16/04/2011 at 12:54 AM

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And my answer is not my personal view. This is what a lawyer has to say about those companies who wants employees to suffer for their rules based on whims and fancy.

Posted by Priyanka Singh on 16/04/2011 at 01:14 AM

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And my answer is not my personal view. This is what a lawyer has to say about those companies who wants employees to suffer for their rules based on whims and fancy.

Posted by Priyanka Singh on 16/04/2011 at 01:14 AM

0 likes  Reply

Please check this http://goo.gl/hwppz

Posted by Saikat Sengupta on 16/04/2011 at 12:22 PM

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Please check this http://goo.gl/hwppz

Posted by Saikat Sengupta on 16/04/2011 at 12:22 PM

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I have a question: how much legal value any agreement has that is not made on stamp paper?

Posted by Saikat Sengupta on 16/04/2011 at 12:30 AM

0 likes  Reply

I think priyanka gave your answer... its "just an arbitrary rule which is not enforceable"

Posted by Sumana Chakraborty on 16/04/2011 at 12:39 AM

0 likes  Reply

I think priyanka gave your answer... its "just an arbitrary rule which is not enforceable"

Posted by Sumana Chakraborty on 16/04/2011 at 12:39 AM

0 likes  Reply

In that case if the employer stops the release order and asks the employee that either he has to serve notice period or compensate what rights the employee has?

Posted by Saikat Sengupta on 16/04/2011 at 12:54 AM

0 likes  Reply

In that case if the employer stops the release order and asks the employee that either he has to serve notice period or compensate what rights the employee has?

Posted by Saikat Sengupta on 16/04/2011 at 12:54 AM

0 likes  Reply

And my answer is not my personal view. This is what a lawyer has to say about those companies who wants employees to suffer for their rules based on whims and fancy.

Posted by Priyanka Singh on 16/04/2011 at 01:14 AM

0 likes  Reply

And my answer is not my personal view. This is what a lawyer has to say about those companies who wants employees to suffer for their rules based on whims and fancy.

Posted by Priyanka Singh on 16/04/2011 at 01:14 AM

0 likes  Reply

Please check this http://goo.gl/hwppz

Posted by Saikat Sengupta on 16/04/2011 at 12:22 PM

0 likes  Reply

Please check this http://goo.gl/hwppz

Posted by Saikat Sengupta on 16/04/2011 at 12:22 PM

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If its mentioned in the appointment letter that an employee should serve notice period and if they fail then he/she will have to pay the company, such rule are just an arbitrary rule which is not enforceable.

Posted by Priyanka Singh on 14/04/2011 at 01:38 PM

0 likes  Reply

 

If its mentioned in the appointment letter that an employee should serve notice period and if they fail then he/she will have to pay the company, such rule are just an arbitrary rule which is not enforceable.

Posted by Priyanka Singh on 14/04/2011 at 01:38 PM

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often I have heard employers saying, we have come here to do business and not some social work... so quite understandable why they end up doing something unpleasant...

Posted by Sumana Chakraborty on 14/04/2011 at 01:15 AM

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and employees are here for the same reason...they must have the right to go for better options!

Posted by Saikat Sengupta on 14/04/2011 at 01:17 AM

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saikat the simple rule is to "Hire great people and give them freedom to be awesome"... such a situation can be avoided easily...why wud an employee want to leave on the first place? there could be several reasons like bad appraisal, lack of motivation and most important lack of space for innovation...

Posted by Sumana Chakraborty on 14/04/2011 at 02:55 AM

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absolutely....

Posted by Saikat Sengupta on 14/04/2011 at 11:11 AM

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often I have heard employers saying, we have come here to do business and not some social work... so quite understandable why they end up doing something unpleasant...

Posted by Sumana Chakraborty on 14/04/2011 at 01:15 AM

0 likes  Reply

and employees are here for the same reason...they must have the right to go for better options!

Posted by Saikat Sengupta on 14/04/2011 at 01:17 AM

0 likes  Reply

saikat the simple rule is to "Hire great people and give them freedom to be awesome"... such a situation can be avoided easily...why wud an employee want to leave on the first place? there could be several reasons like bad appraisal, lack of motivation and most important lack of space for innovation...

Posted by Sumana Chakraborty on 14/04/2011 at 02:55 AM

0 likes  Reply

absolutely....

Posted by Saikat Sengupta on 14/04/2011 at 11:11 AM

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