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Indian Law/Resignation and notice period


Hi Everyone!

I work at a multinational manufacturing (auto parts) company. I received a good offer from another company so I resigned my current job. My notice period is 2-months.

I served 1-month notice period already. Now I got another better offer for which I need to join on 2/Jan/2013. Which is my actual notice period - 15 days. This new company does not need my re-leaving order but I need it for my future.

If I do not join the new company on 2-Jan, I will loose this very good offer. I already negotiated with them for this date. So, I cant negotiate with them any more.

I spoke to my Manager to relieve me 15 days early and I would pay the salary for 15-days, but he refused. I spoke to him many times and in many ways but he would not relieve me early. I even tried speaking to General Manager & HR Manager but they said that only my Manager has the right to relieve me early.

My offer letter says that "The company reserves the right to pay or recover salary in lieu of notice period". Please advice what should I do in this situation.

If I can pay 15-days salary, should I pay the Gross salary/Basic/Take Home as per Indian Rules (I live in TN)?

Here is what my offer letter says:
"This contract of employment is terminable, without reasons, by either party giving one-month notice during probationary period and two months notice on confirmation. The Notice Period
entails the employee to discharge his duties without being on leave. Leave availed during the notice period with prior authorization by superior, must be compensated prior to being
relieved from the services of the Company. (Eg - If 5 Days leave is availed during the notice period , the last date will be shifted forward by 5 Days). The company reserves the right to pay or recover salary in lieu of notice period. Further, the Company may at its discretion relieve you from such dates as it may deem fit even prior to the expiry of the notice period."

Thanks for your help!

As per the terms of your engagement, contract may be terminated by either party giving  two months notice on confirmation. Moreover, employer has the right to recover the shortage in the notice-period and the Company may at its discretion relieve you from such date as it may deem fit even prior to the expiry of the notice period.However, there is no scope for the employee to leave by depositing pay in lieu of notice period.Therefore,it is fully at the dicretion of your employer to allow you to leave by giving shorter notice.

Since you have got a better opportunity and your new employer are not insisting for any release order,you should leave simply on the basis of your resignation letter.In future if you intend to make a further change,then release order will be necessary from your last employment only.However,Your existing employer may creat some problem in releasing your outstanding dues for which you may have to fight through court.Besides that I do not find any other problem for you.As you have served a notice for resignation and since your employer has the option to adjust the shortage in the notice period against your pay,there shoud be no loss for them to release you at shorter notice.They should not stand in the way of your progress in your career.Rather they should appreciate it and I hope court's decision shall be in your favour.However, to protect your interest please take all decisions in consultation with a lawyer.

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Arun Kumar Maitra


Contract Law,Companies Act,Sale of Goods Act,Partnership Act,Negotiable Instument Acts,Constitution of India,Arbitration Act,Consumer Protection Act,Maternity Act,Payment of Gratuity Act,Payment of Bonus Act,Shops & Establishment Act etc.The answer to the grievance of the particular online query depends on the facts of the particular case and law applicable to it.However,my comments relating to the various queries raised through the "All Experts" should not be treated as legal advices and should not at all be relied upon.I do not accept any responsibility for them.They will only give you some ideas about the probable merits of your cases.Ultimate actions/decisions in the matter may please be taken in consultation with the Legal Experts in the relevant fields.My purpose of giving the comments is to increase my own knowledge on the subjects and share it with others.It is purely of academic interest to me. I strongly feel the more knowledge we share,the more we shall be able to learn because there is neither any age nor any end to learning.


I have experience of dealing with matters relating to holdings of board/general meetings,maintenance of statutory registers,filing of necessary returns with the RoC,obtaining licenses for import,replies to Parliament Questions,dealing with the Parliamentary Committees,appearing before various courts to defend my employers,filing affidavits/counter -affidavits,preparing written statements/re-joinder,giving advice to management on complicated legal issues,preparation,drafting and vetting of contracts etc. I have more than 35 years of experiences to deal with the Company Law and Other Commercial Laws of leading Organisations in the country both in Public as well as Private Sectors.

Member,Inst. of Chartered Accountants of India Member,Inst. of Company Secretaries of India; Member,Bar Council of India Member,All India Management Association Member,Delhi Management Association Ex. Vice-Chairman,Durgapore Chapter of the I.C.A.I. Expert ,CA Club India Expert ,Lawyers Club India Expert,AllExperts Ex. Faculty ,I.C.S.I as well as I.C.W.A of India Retd. Co. Secy. & G.M.(Law)/NFL(A Mini-Ratna A Schedule Central P.S.U.),New Delhi Ex.V.P.(Secretarial Dept.),Jaiprakash Associates Ltd. Ex. Co. Secy.,MAMC(A Govt. of India Enterprise),Durgapore



Awards and Honors
Obtained ''A'' Grade Certificate in the Parliamentary Procedure from the Secy. General of Parliament in 1994-95.It was in connection with a training course conducted by the BPE for PSU Executives.

Past/Present Clients
I am presently working as a Company Secretary in Old World Hospitality Pvt. Ltd.located in Delhi.It is engaged in Hospitality Industry.It has Units in India and abroad.It has been given the responsibility to look after operation & Management of ''India Habetat Centre'' located at Lodhi Road,New Delhi.

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