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Company over charging on notice period what can i do.


03-Dec-2023 (In Labour & Service Law)
I left my previous company without serving one months' notice. I agree to pay in lieu of the notice. As per my agreement letter, if m not confirmed I have to serve months notice or pay in lieu if I want to leave. My company is asking me to pay in lieu for two months. I was offered a confirmation letter after I sent a resignation mail. Plus they are charging 18% interest on the amount which again is not mentioned in the agreement. Are they allowed to do this?
Answers (1)

Answer #1
537 votes
If as per your employment agreement, either of the parties, that is your employer or you, were to terminate the employment agreement or were to issue a 3 months written notice to the other party or to pay a sum equivalent to the salary of 3 months, then due to your contractual obligations, which you had accepted under the employment agreement, you are liable to pay the said amount to the company.



As far as the receipt of experience letter is concerned, the non-issuance of the same flows as a consequence of non- payment of the amount in lieu of the notice period. However, you may write to them asking for the same.

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