Consultation Request – Notice Pay Dispute with Former Employer

Question

Consultation Request – Notice Pay Dispute with Former Employer

06-Aug-2026 (In Labour & Service Law)

Resigned 20 Jul 2026, offered 15-day notice. CEO accepted via email, said performance "did not meet expectations" but relieved me "with immediate effect" - no clause/cause cited. Handover completed 21 Jul. Later, company invoked Clause 13(c)(v) ("performance not per terms, sole judgment") to deny notice pay - first raised only after I requested FnF. No PIP/warnings ever issued. Contract never signed by me. Need advice: is clause enforceable given timing/estoppel, unsigned contract? What's my FnF

Answers (1)

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Advocate Dhruv. K LawRato · Accepted Answer · 2026-08-23T12:46:24+05:30

Answer #1

Key Legal Issues Unsigned Contract: If you never signed the contract, the employer cannot selectively rely on Clause 13(c)(v) while claiming you are bound by its terms. Waiver and Estoppel: Relieving you immediately without citing the clause initially—and only raising it when you asked for Full and Final (FnF) settlement—weakens their legal standing. Notice Pay Entitlement: Since you offered a 15-day notice and completed handover, you are legally entitled to pay for the notice period or the remaining duration they shortened without cause. Your Full and Final (FnF) Dues Unpaid salary up to your last working day (21 Jul 2026). Notice pay for the period not served due to immediate relief. Encashment of accumulated earned leaves (if applicable under standard labor rules or company policy).

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Adv. Dhruv. K Adv. Dhruv. K

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