Refusal to accept resignation amounts to bonded labor: Kerala HC
What's the story
The Kerala High Court has ruled that an employer's refusal to accept an employee's resignation amounts to "bonded labor," which is prohibited under Article 23 of the Indian Constitution. The ruling came in a case involving Greevas Job Panakkal, a company secretary at Traco Cable Company Limited, who resigned due to irregular salary payments and the need to care for his ailing mother after his father's passing. The company had rejected his resignation, citing financial crisis and his indispensable role.
Legal perspective
Conditions under which employer can refuse resignation
Justice N Nagaresh of the Kerala HC clarified that an employer can only refuse a resignation under specific circumstances. These include non-compliance with notice periods, "heat of the moment" resignations, serious disciplinary proceedings for major misconduct, or potential financial loss to the organization. In Panakkal's case, none of these conditions were met, rendering the company's refusal legally unsustainable.
Orders
Court's observations and directives
The court observed that financial issues cannot force an employee to work against their will. It also noted that disciplinary proceedings against Panakkal were an attempt to violate his right to resign. The court quashed memos rejecting his resignation and directed Traco Cable Company to accept it formally within two months. The company was also ordered to settle Panakkal's unpaid salary, the leave surrender benefits, and other terminal dues as soon as possible.