Re: resignation and need to leave without serving full 60 days of notice
I have resigned on 02 August 2008. I'm suppose to serve 45 days of notice. but my new company will require me to join them earlier. I have the money to pay back my current company due to failure to serve full 45 days.
other than the penalty, what other legal actions i may face or my current company can do (worse case)?
You will need to go back to your letter of engaement. In it there will be terms relating to your employment.
With reference to your payment in "lieu of your notice period" I would like to say that it is not a penalty.
In your letter of engagement the company would have stated that you are to serve 45 days or "payment in liee of service".
Now from this I take it that it is not a penalty. What it mean is that your payment is now taken as a replacement of your notice period i.e. YOU HAVE SERVE YOUR NOTICE PERIOD NOT IN PERSON BUT IN CASH which is in your written contract of service.
Sometimes in your letter of engagement there are also clause that say that you are not suppose to work for a competitor. Of course the company is only protecting itself but if I am not wrong, the labour act does not allow such terms as it inhibits an employee to earn a living.
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