Essentials of Resignation - test of voluntary resignation vis-a-vis fradulent or coercive document

 

Essentials of valid resignation and acceptance, critical review

 

The whole industry, be it micro, small, medium, or large are operating either in virtual or near virtual web of process, right from recruitment to separation. However, the labour laws remain static despite introduction of labour codes few years ago. While the labour codes have brought out a series of simplifications and ease of process, fundamental principles on bare compliance and fair practices are essential for dispute free management of any organization.

This brief analysis focusses on the essentials of a valid resignation process, in the light of ‘asked to resign’ dilution of the due diligence process while considering the resignation process. Be it a strong HR system or a bare minimum structure, the process remains to be mechanical with significant vagaries.

While the instances of ‘asked to resign’ are clear cut grey area and an unfair practice even ordinary cases of voluntary resignations are recalled or withdrawn when the employee realizes lack of outside opportunity, an offer not fructifying in to an appointment and certain weird circumstances. However, if the employer has a robust process including resignation (though thought cumbersome, it is ideal to establish this mechanism to minimize litigation, liability, besides reputation.

The basic rule for compliance for a resignation would be to exercise due diligence and issue the acceptance of resignation, duly approved by the competent authority (usually the authority who appoints the employee). In the digital era it is not cumbersome as such an acceptance can be a digital mode (not an email which is susceptible to tampering)

Another key aspect of process is while accepting a resignation, the employer at times choose to relieve an employee with immediate effect (without considering the due notice period). While employer has the option to waive such notice relieve a person early, such fact has to be stated and employee paid due wages for the period of notice, unless such waiver is at the request of the employee.

In a recent case a senior managerial employee  tendered his resignation and the Line Manager in his reply just wrote back, wishing him all the best! The resignation was not expressly accepted not even acknowledged. The employee rolled back his decision and demanded resumption of his employment, by when the HR had initiated the exit process. The employee filed a suit for declaration his own resignation as null and void managed to obtain an order restraining any coercive action. Though the suit was dismissed, the ad hoc salary payments made by the employer basis interim order without work remains to be returned by the employee, in the guise of filing appeal.

The recent judgement of the Madhya Pradesh High Court, reported in the Labour Law Reporter (2023 LLR 827) emphasizes that a resignation letter will be considered as a fraudulently obtained one if there is lack of consistency in the evidence of the management. Other Key points of importance in the judgement are :

IMPORTANT POINTS

• Acceptance of resignation by the incompetent authority instantly when submitted is not proper.
• Inference by judicial authority that resignation is a forged one is proper in view of the fact that resignation was not sent to the competent authority even when the resignation was addressed to Senior Depot Manager who did not have any authority to act upon such resignation.
• It is expected from the model employer that when a workman submits his resignation for immediate acceptance, management should ensure that workman has been apprised of the consequences of the resignation before acceptance of resignation immediately without one month notice.
• The Rights of Persons with Disabilities Act, 2016 provides Principles for empowerment of persons with disabilities enumerate freedom to make own choices and independence of persons, full and effective participation and inclusion in society and equality of opportunity besides other principles, to address problems of differently abled employees.
• It is well settled principle of law that Fraud Vitiates Everything.

 

 

 

For detailed judgement, you may refer LLR