I worked at ONGC for 8 years and resigned with a month’s notice, instead of the standard 3 months. Now, they’re asking me to pay a penalty of 5 months’ basic salary and dearness allowance. I’ve heard that such a penalty isn’t common practice, even in private companies.
My question is:
1. Is it legally valid for ONGC to impose this penalty? They’re citing an office order from 2012, signed by a General Manager (HR), mentioning changes to the service rules.
2. However, there’s a newer version of the service rules published in 2014, which doesn’t mention this 3-month penalty. The HR department claims they forgot to update the document. Shouldn’t the latest version of the rules be considered valid in this situation?
Best Answer
While ONGC may have internal policies regarding resignation notice periods, imposing a 5-month penalty for a shorter notice period is likely excessive and questionable. The 2014 service rules, which do not mention the penalty, should be considered the valid document. It is advisable to consult a lawyer to understand your legal rights and challenge the penalty.
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