In a recent landmark judgment, the Supreme Court of India clarified an essential aspect of employment law: the finality of an employee’s resignation.
The ruling emphasizes that a resignation becomes binding only upon formal acceptance by the employer and subsequent communication to the employee.
The Case
The case before the Supreme Court involved a Railways employee who had served at the Konkan Rail Corporation for over two decades.
In December 2013, he submitted his resignation, intending it to take effect within a month. However, the employer’s acceptance of this resignation occurred much later—in the first week of April 2024.
Curiously, there was no official acceptance letter or any communication regarding the resignation during this period.
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Withdrawal of Resignation and Supreme Court’s Verdict
Before the employer formally accepted his resignation, the employee decided to withdraw it. Despite this withdrawal, the Railways relieved him from duty in July 2024.
The employee contested this action, leading to a legal battle that eventually reached the Supreme Court.
The Supreme Court rightly observed that the mere absence of an official acceptance letter indicated that the resignation given in December 2023 was not accepted.
Internal communications within the organization cannot substitute for an official acceptance of a resigning letter.
In this case, the petitioner had been in touch with the employer even after tendering his resignation, demonstrating his willingness to continue working.
However, without explicit acceptance, there was no basis for relieving him from duty.
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Key Takeaways
Formal Acceptance Matters: The Court emphasized that a resignation is not final until the employer formally accepts it and communicates this acceptance to the employee.
Internal Communication vs. Official Acceptance: Internal discussions or informal acknowledgments within the organization do not fulfill the requirement for acceptance.
Employee’s Intent: The petitioner’s actions—remaining in touch with the employer and reporting for duty—highlighted his intent to continue working despite the initial unacceptance.
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