One of my clients recently had a case which I am explaining below and if you are stuck in such similar situation, here is what to do.
Note: Due to attorney-client privilege, I cannot disclose complete case details or identify the actual parties involved. However, I am sharing the essential facts and legal approach so that if you find yourself in a similar situation, you can understand the available solutions and legal remedies.
Mr.X, a full-stack developer with over two years of experience, resigned from XYZ Tech Company on DD/MM/YYYY due to deteriorating health conditions. Several months prior to his resignation, the company had introduced a new policy document stating that employees could not leave immediately and must either serve a three-month notice period or compensate the company with one month’s salary. Mr.X submitted his resignation citing health issues but the company insisted on enforcing the notice period clause, threatening legal action and withholding his final settlement. The situation became complicated when Mr.X’s medical condition required immediate attention and rest, making it impossible for him to continue working during the notice period.
Advice in Such Cases
Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation to come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.
- Gather all medical documentation proving your health condition and its severity
- Review your employment contract carefully to understand the notice period clauses and their legal enforceability
- Document all communications with your employer regarding your resignation and health issues
Applicable Sections of Law
Under the Bharatiya Nyaya Sanhita (BNS), employment disputes involving wrongful retention of salary or coercion fall under various provisions. Section 308 BNS deals with extortion, which may apply if the employer unlawfully demands compensation. The Bharatiya Nagarik Suraksha Sanhita (BNSS) provides procedural guidelines for filing complaints. Additionally, the Industrial Disputes Act and Contract Labour Act govern employment relationships, while the Payment of Wages Act ensures timely salary payments. Medical grounds for resignation are protected under disability and health-related employment protections.
If You Are the Complainant
- File a complaint with the Labour Commissioner regarding wrongful withholding of final settlement
- Approach the Industrial Tribunal for resolution of the employment dispute
- Document medical evidence supporting your inability to serve notice period
- Gather witness statements from colleagues or supervisors aware of your health condition
- Maintain records of all salary payments, benefits, and company communications
If You Are the Victim
- Immediately seek medical certification from qualified doctors regarding your health condition
- Request written communication from your employer about their demands and threats
- Preserve all employment-related documents including offer letter, salary slips, and performance records
- Contact the company’s HR department in writing explaining your situation
- Keep detailed records of any financial losses caused by the employer’s actions
How the Police Behave in Such Cases
Police typically treat employment disputes as civil matters unless criminal elements like threats or extortion are involved. They may advise approaching labour courts or industrial tribunals first. If the employer makes threats or uses coercive methods to extract money, police may register a complaint under relevant BNS sections. However, they often recommend mediation through labour authorities before pursuing criminal remedies.
FAQs People Normally Have
Can an employer force me to serve notice period despite health issues? No, medical emergencies and serious health conditions can justify immediate resignation without notice period.
Is it legal for companies to withhold salary for not serving notice? Employers can only recover actual losses caused by sudden departure, not arbitrary penalties.
What if my employment contract has strict notice period clauses? Contracts cannot override fundamental rights to health and well-being.
Can I claim damages from my employer? Yes, if wrongful actions caused financial or mental distress, compensation may be sought.
What Evidence Is Required?
- Medical certificates and doctor’s reports confirming health condition
- Employment contract and company policy documents
- Resignation letter with medical grounds mentioned
- Email communications with employer and HR department
- Salary slips and final settlement calculations
- Witness statements from colleagues or supervisors
- Records of any financial losses or harassment faced
How Long Will the Investigation Take?
Labour disputes typically take 3-6 months for resolution through conciliation proceedings. If the matter goes to Industrial Tribunal, it may take 6-12 months. Criminal complaints, if applicable, usually take 6-18 months depending on case complexity. Mediation through labour authorities often provides faster resolution within 2-3 months.
Advocate Sudhir Rao, Supreme Court of India

