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Employee Resignation & Legal Implication
Human Resources » Industrial Law & Discipline

Chrm Message From: bimal kapoor Total Posts: 25 Join Date: 13/04/2007
Rank: Executive Post Date: 13/02/2012 06:31:42 Points: 125 Location: United States
Hi everyone,
I came across this case in one of the groups. Thought of having your views on this and create a debatable discussion.
A friend of mine, who was employed with one of India's largest & fastest growing business house's GENERAL INSURANCE business (An arm of it's capital company) in their Gujarat Regional Branch.
He joined this company through CAMPUS PLACEMENTS & resigned from his duties JUST AFTER 2 MONTHS of employment & mailed his resignation on Jul 31, 2007 3:40 PM with CC to his Regional Manager, Circle Manager, Branch Manager & HR Managers. In return, he received reply from RGM mentioning required handing over activities to be done.
Upon completion of required handing over activities at the Branch where he was transferred lately, he left the branch to pursue some other assignment. NONE OF HIS SENIOR INFORMED ANYTHING ABOUT RELIEVING PROCEDURE. He even followed up with some HR coordinator in their Mumbai HO over some calls for final relieving but in vain, as there was no proper response from them then.
Now, after one year the company & its HR Department wakes upto the issue asking him to pay notice period shortfall worth some 14K. Upon his neglecting the final settlement papers for some 15 days, he's now received a mail informing LEGAL ACTION against him on this ground.
My 1st question to the group is whether is this ethical to issue notice to employees after 1 year of employment even after having informed every relevant authority in the organization about his resignation & completing required handing over activities at the BRANCH of posting?
And 2nd question what legal action can an employer take in this situation and what could be done on employee's front to avoid any penalty or legal action?
Your valuable inputs will help a VICTIM of such poor standard of HR PRACTICES get out of this mess.
Chrm Message From: srini Total Posts: 163 Join Date: 13/04/2007  
Rank: Leader Post Date: 13/02/2012 06:32:55 Points: 815 Location: United States

My immediate response would be to settle. 14K is by no standards a huge sum. The professional world afterall is a small place. Why spoil chances of good professional relationship for such a small sum. Having said this let me now answer your legal queries. The law of limitation to this case, to my mind does not apply. The case though is weak from management perspective since they have woken up after one year(though i feel this may not be the correct situation/please check back with your friend). Secondly one has to know the appointment terms and the documents that may have been signed by your friend with his ex-employers to answer the second legal query.

Hope this helps.

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