The Punjab & Haryana High Court has ruled that an employer cannot accept an employee’s resignation with retrospective effect if the resignation was withdrawn before acceptance.
Court’s Decision on Resignation Withdrawal
Justice Harsimran Singh Sethi stated that if an employee withdraws their resignation before it is formally accepted, the employer does not have the legal authority to accept it retrospectively.
Background of the Case
B.B. Gupta, who had been working as a Senior Accountant, submitted his resignation on November 1, 1993, with a one-month notice period. However, his resignation was not accepted immediately due to an outstanding house loan. In August 1994, before the resignation was formally approved, Gupta withdrew it and requested to continue working.
Despite this, on September 6, 1994, the employer accepted the resignation retroactively from November 30, 1993. Gupta challenged this decision in court, arguing that since he had already withdrawn his resignation, the acceptance was legally invalid.
Court’s Key Observations
- The court examined Rule 14 of the HAFED Common Cadre Rules, 1988, which states that an employee’s resignation is valid only when officially accepted by the competent authority.
- Since Gupta withdrew his resignation before the employer’s acceptance, the retrospective acceptance was ruled unlawful.
- The court held that there is no provision for deemed acceptance of resignation with retrospective effect under employment law.
Final Verdict
The High Court ruled in favor of Gupta, declaring that he was entitled to continue his service until retirement. He was awarded 50% of back wages along with all retirement benefits.
This judgment reinforces the principle that an employee has the right to withdraw their resignation before it is formally accepted, preventing arbitrary decisions by employers.
