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Indian Law/Notice period recovery in probation period


dear Sir,
Good evening,

I had joined an IT company on 14 Sep 2016 and due to some family issue I had to resign from the company on 5th October 2016 only after 20 days.At the time of resignation I was on the probation period which is of one year.I have not served a single day of my notice period which was of 2 months.
Now the company sent me a letter asking me notice pay recovwry amount of 1.6 lacs approximately.
I have read that according to the shop and establishment act If an employee worked in a company less than a month and in probation peiod notice period can not be enforced.
So now I want to know is the above statement correct and can the company take a legal action against me If I failed to deposit the outstanding amount.

Please suggest as amount is so big and I am really not able to pay this.

Thanks & Regards

An employee can resign from his services at any time by complying with the terms and conditions of contract specified in the engagement letter.Normally , it is stated that an employee may resign by serving the requisite notice period or in lieu of pay thereof.
If there is provision in your terms of engagement to recover pay in lieu of notice,your previous employer can very rightly demand it.
However,the amount claimed by them seems to b unreasonable and probably they are claimimg the amount payable on account of any bond executed by you.Even in such case,they cannot claim anything more than the actual loss suffered by them.
Accordingly,you are advised to send a well drafted legal notice through a good corporate 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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