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.
TL;DR: A verbal promise of garden leave salary isn’t automatically worthless, but it’s hard to prove. You can still enforce your dues through a strong legal notice, followed by a civil suit or a complaint before the labour authorities. The key is acting fast and getting written proof of the employer’s stand.
Rohan Gupta worked as a senior analyst at Zomato’s Pune office for around two years. In late June 2025, things took a sharp turn. His manager and an HR representative called him in and said the company was “restructuring.” They didn’t want to formally terminate him, they said — it would look bad for everyone. Instead, they asked Rohan to submit a voluntary resignation. The HR representative, Mr. Kulkarni, verbally promised a three-month garden leave with full salary: two months’ regular salary and the third month as part of the full and final settlement. Trusting this, Rohan resigned on 28 June 2025. But then the June salary never came. When he followed up, HR dismissed him: the June salary would only be released with the F&F at the end of garden leave, they said. All his emails seeking written confirmation went ignored. Rohan first consulted a general practitioner who advised him to just “wait it out.” That didn’t help. The unpaid salary piled up, and anxiety grew. He then approached the Chamber of Advocate Sudhir Rao. The office of Advocate Sudhir Rao immediately spotted that the verbal promise and the absence of written communication created a classic breach-of-contract scenario. A sharply drafted legal notice under Advocate Sudhir Rao’s signature went out — it cited the employer’s obligation to pay wages and the consequences of unjust enrichment. Within ten days, the company released the June salary and confirmed in writing that the garden leave terms would be honoured as promised.Key Facts of the Case
- Rohan Gupta worked at Zomato’s Pune office for approximately two years before being asked to resign.
- In late June 2025, HR verbally assured him of three months’ garden leave with full salary — two months regular pay and one month in the F&F settlement.
- Rohan resigned on 28 June 2025 solely relying on that oral assurance.
- The June 2025 salary was not credited, and HR later claimed it would only be paid as part of the final settlement at the end of the garden leave period.
- All discussions were verbal; follow-up emails seeking written confirmation were completely ignored.
- No termination letter, garden leave policy document, or written agreement was ever provided.
- After a non-specialist approach failed, the matter was handled by Advocate Sudhir Rao’s office, leading to a swift resolution through a legal notice.
The Direct Legal Answer
Can the company treat this as a purely voluntary resignation when I was asked to resign?
No, not if the resignation was coerced or induced by a false promise. The law looks at substance over form. If you can show that the employer asked you to resign and made a promise that it later broke, a court or tribunal can treat the resignation as constructive dismissal. That allows you to claim compensation for breach, even if the paper says “voluntary.”
Is HR’s verbal promise regarding 3 months’ salary / garden leave legally enforceable?
It can be. Oral contracts are valid under the Indian Contract Act so long as there is offer, acceptance, and consideration — and they are not specifically required by law to be in writing. Employment terms aren’t mandated to be written. But proving a verbal promise is tough. Contemporaneous emails, WhatsApp messages, or voice recordings can turn the tide. Even without them, circumstantial evidence and the company’s conduct matter.
Can the company withhold my July salary until F&F?
No. Salary for work already performed is a debt due. Withholding it as leverage is unlawful. The Payment of Wages Act makes it an employer’s duty to pay wages on time, and any delay can attract interest or penalty.
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.
Don’t let the absence of a written agreement paralyse you. Even verbal contracts can be enforced, but the strategy must shift towards gathering corroborative proof. Send a formal email summarising the verbal promise and request confirmation. If the employer doesn’t deny it, silence can be used as an admission. And here’s the thing — employment disputes involve a patchwork of contract law, labour statutes, and procedural rules. An advocate who doesn’t regularly handle employment matters may not know that a simple legal notice under the right provision often resolves the issue without ever stepping into court.
Applicable Sections of Law
- Section 73, Indian Contract Act, 1872 – Compensation for loss or damage caused by breach of contract. The unpaid garden leave salary is a quantifiable loss.
- Section 39, Indian Contract Act, 1872 – When a party refuses to perform its promise, the other can put an end to the contract and claim damages.
- Order 37, Code of Civil Procedure, 1908 – Summary suit for recovery of a liquidated demand (like fixed monthly salary). This is faster than an ordinary suit.
- Payment of Wages Act, 1936 (if applicable) – Employers must pay wages before the 7th or 10th of the following month, depending on the establishment.
Jurisdiction — Where to File the Case
For recovery of salary, you can approach the civil court having territorial and pecuniary jurisdiction — usually the court where the employer’s office is located, or where the cause of action arose (i.e., where you worked or were supposed to receive payment). You can also file a complaint before the Labour Commissioner under the Shops and Establishments Act of your state or under the Payment of Wages Act. These forums are less formal and quicker for straightforward wage claims. If the salary due exceeds the civil court’s pecuniary limits, the matter goes to a higher court. Jurisdiction dictates which court hears your case; filing in the wrong place delays everything.
Limitation Period
Don’t wait. For recovery of wages, the limitation period under Article 7 of the Schedule to the Limitation Act, 1963 is three years from the date the salary became due. So for the June 2025 salary that was payable by early July, the clock starts from that due date. Missing this deadline can kill your claim. If you are close to the limit, an advocate can assist with a condonation of delay application, but courts don’t grant these easily without solid reasons.
Interim Reliefs Available
Before the main suit is decided, you can ask the court for an attachment before judgment under Order 38 of the Code of Civil Procedure. This freezes the employer’s assets or bank accounts to ensure money is available if you win. It’s a powerful tool. You’ll need to show the employer is trying to delay or evade payment. Since employment disputes often involve straightforward monetary claims, obtaining such an order early can pressure the company to settle fast, saving years of litigation.
If You Are the Victim
- Stop communicating purely orally. Send an email or WhatsApp message summarising the verbal promise and ask for confirmation. This creates a paper trail.
- Do not sign any “full and final settlement” receipt unless you are actually paid everything you are owed.
- Collect all evidence — offer letters, salary slips, bank statements, and any messages that hint at the garden leave arrangement.
- Consult a lawyer who regularly handles employment disputes before things escalate.
- Consider sending a legal notice. In many cases, a properly drafted notice under Advocate supervision prompts compliance without litigation.
Documents You Must Keep Ready
- Appointment letter and subsequent offer letters or amendments
- Last three months’ salary slips and bank statements showing credit dates
- Copy of the resignation email or letter you submitted
- Screenshots of any WhatsApp or Slack conversations about garden leave
- Your follow-up emails requesting written confirmation
- The employer’s responses (or lack thereof)
- Aadhaar card and PAN card for identity verification
- A timeline of the events — dates, who said what, and when you resigned
What Evidence Is Required?
- Oral testimony — yours and any colleague who overheard the conversation is primary evidence.
- Electronic records: emails, WhatsApp chats, SMS. Under the Indian Evidence Act, these are admissible as secondary evidence if the original device is available for verification.
- Employment contract and HR policies — even if they don’t mention garden leave, they help establish the relationship.
- Bank statements showing the pattern of salary credits and the sudden stoppage.
- Call recordings, if lawfully obtained, can be powerful. Courts have accepted them as evidence when authenticity is proved.
- Contemporaneous notes made immediately after the conversation — they carry weight as corroborative material.
How Courts Typically Approach Such Cases
Civil courts in employment disputes look for the existence of a contractual relationship and a breach. If the employee can show that a representation was made and acted upon, the principle of promissory estoppel can bind the employer — even without a signed document. Courts are increasingly pragmatic about oral contracts in modern workplaces where much is done informally. But they also expect employees to take basic steps to confirm promises. If you stayed silent for months, it weakens your case. The judge will ask: “If the promise was real, why didn’t you follow up in writing?” So early documentation matters.
Timeline of Legal Process
- Legal notice: draft and serve — 1 to 2 weeks. Often the dispute ends here.
- Filing of plaint in civil court (summary suit under Order 37 CPC): 2–3 weeks after notice if no response.
- Summons to defendant: 2–4 weeks. In summary suits, the defendant gets only 10 days to enter an appearance, else judgment can be passed.
- Written statement and issues: 6–8 weeks if contested.
- Evidence and arguments: 3–6 hearings over 4–8 months depending on court docket.
- Judgment: typically within 3–6 months after final arguments.
- Execution if the employer doesn’t pay: another 2–4 months.
Understanding the Costs
The total cost of a matter like this varies significantly from one case to the next — it depends on the complexity of the dispute, the forum involved, the number of hearings, and the specific facts of your situation. There is no single fixed figure that applies to everyone.
A professional advocate can give you an accurate estimate only after reviewing all your facts and documents in a consultation.
Can the Matter Be Settled Out of Court?
Absolutely. Mediation and conciliation are encouraged under Section 89 of the Code of Civil Procedure. Before filing a suit, your advocate can send a settlement offer along with the legal notice. Even after a suit is filed, the court can refer the parties to mediation. Lok Adalats also handle such monetary claims, and settlements there are final and non-appealable. In employment disputes, companies often prefer a quiet settlement to avoid a court record. A well-timed negotiation, backed by the threat of a summary suit and attachment, can yield the entire sum along with some compensation — without the stress of litigation.
Common Mistakes People Make
- Resigning purely on a verbal promise without any written confirmation, not even an email summary.
- Delaying follow-up. If you wait months before raising the issue, courts may doubt your story.
- Signing a “full and final” voucher while still owed money — it can be used to argue you accepted a lesser sum.
- Not saving WhatsApp messages or other digital communication — they disappear, and you lose evidence.
- Posting about the dispute on social media before consulting a lawyer — employers can use this to claim defamation or confidentiality breach.
- Engaging an advocate without specific experience in employment and contractual recovery matters. A general practitioner may file an ordinary suit instead of a summary one, causing delays of years. Domain-specific experience ensures the right forum, the right interim reliefs, and a faster path to your money.
FAQs People Normally Have
Is a verbal promise of garden leave salary legally binding?
Yes, it can be, provided you can prove it. Oral contracts are valid under the Indian Contract Act. The challenge is evidence, not enforceability.
What if HR refuses to put anything in writing?
Send your own email stating “As discussed, I am resigning on the understanding that you will provide three months’ garden leave salary.” If they don’t deny it, their silence may be treated as acceptance.
Can I recover my June salary even if I resigned?
Definitely. Salary for work already performed is a vested right. Withholding it is illegal. A legal notice often resolves this quickly.
Should I approach the Labour Commissioner or file a civil suit?
For straightforward unpaid wages, the Labour Commissioner can be faster and cheaper. But if the employer disputes the garden leave promise or if you want attachment of assets, a civil suit (especially summary suit) gives stronger remedies. Your advocate can help choose the right path.
What is the time limit to file a case?
Three years from the date each salary instalment became due. So act without delay — evidence fades and limitation can kill your claim.
This article is general legal information, not legal advice. Consult a qualified advocate about your specific situation.
Advocate Sudhir Rao, Supreme Court of India