Resignation not complete unless acceptance by employee is made known: SC ruling.

Resignation not complete unless acceptance by employee is made known: SC ruling.

The Supreme Court of India recently decided a landmark case that addresses whether a resignation submitted by an employee becomes effective only after the communication of the acceptance thereof to the employee. The case itself arose when the employee had tendered his resignation but sought to withdraw it prior to the official communication of its acceptance by the employerBackground of the Case The case happened to be an employee who tendered his resignation to the employer, handing it over voluntarily, believing that on his own, such a resignation would take effect. Before the employer could give its formal acceptance with communication of acceptance of the resignation, the said employee made a decision and attempted withdrawal of the resignation tendered. The employer dug in its heels and insisted that after the resignation had been tendered, it could not thereafter be withdrawn but would remain final. Legal Issue The judicial question on that occasion presented to the Supreme Court was: Can a resignation tendered be withdrawn before the employer has actually communicated acceptance? The employee's point of argument was that without formal communication of acceptance, the resignation could not be considered as finally accepted and therefore the door should be left open for withdrawal. The Supreme Court's Decision The Supreme Court declared the employee to be correct when its judgment held that resignation does not become effective legally because of its submission alone. The above-stated occasions are the occasions when the employer accepts the same formally and the intention is communicated to the employee, wherein resignation takes effect. The Court held that communication of acceptance is the most important thing in an employment contract, which completes the resignation process. Submission of a resignation letter is only an offer to resign and involves an act of acceptance by the employer, which makes the resignation final. A resignation is not effective until this acceptance is communicated; and until then, the employee has a right to withdraw the resignation. Key Takeaways Resignation as an Offer: The court declared that a resignation is nothing but an offer by the employee to end the employment contract. It is this very offer which has to be accepted by the employer. Communication of Acceptance: The acceptance of the resignation has to be communicated to the employee in adequate terms and owing to lack of such communication, the resignation may even be withdrawn by the employee at the peril of the employer. Right to Withdraw: The judgment has the right for the employees to reconsider and withdraw their resignation as long as they were not officially communicated with the acceptance of such resignation. Effect of the Case Judgment Such judgment would promote employee rights as one gains protection when he decides to resign from his post but later changes his mind. Such judgments prevent any form of resignation as it is only a two-way process whereby both parties consent and communicating to each other, hence to any employee is being protected against premature or unintended effects. .

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