The Kerala High Court has ruled that when an employee submits a resignation in line with the terms of their employment contract, the employer must accept it, and refusing to do so can amount to bonded labour. The court made this observation while granting relief to a company secretary working in a public sector undertaking (PSU) who was being prevented from leaving his job despite resigning. Kerala High Court Says Refusing Valid Resignation Amounts to Bonded Labour Justice N Nagaresh stated that if an employee has complied with notice period requirements and other contractual obligations, the employer cannot reject the resignation unless serious disciplinary proceedings are being considered for grave misconduct or financial loss caused to the organization. The judge clarified, “In any other circumstance, if the employer refuses to accept the resignation of an employee, it would amount to bonded labour prohibited under Article 23 of the Constitution of India.” The case arose from a petition filed by the company secretary challenging show-cause notices and memos issued by the PSU that directed him to return to work even after he had formally resigned. The PSU had declined to accept his resignation and asked him to explain why disciplinary action… Read MoreBusiness Archives – Trak.in – Indian Business of Tech, Mobile & Startups
