Resigning from a job isn’t just about handing over a letter and walking away.
Whether you’re moving for a better opportunity, escaping a toxic environment, or simply taking a break, it’s important to leave your workplace the right way—legally and professionally. If you skip formal steps, you might lose out on your pending salary, gratuity, relieving letter, or even face legal consequences.
In India, your resignation process is primarily governed by your employment contract. This contract usually lays down your notice period, exit obligations, and any restrictive clauses.
Most companies require at least 30 days’ notice, but some may ask for 60 or 90 days. In absence of a written contract, general principles under the Indian Contract Act, 1872, and labour law practices apply.
| Step | What It Involves |
|---|---|
| Notice Period | Serving time as per contract or paying salary in lieu |
| Resignation Letter | Submitting written notice via email or official portal |
| Exit Clearance | Returning assets, completing handovers, HR exit interviews |
| Final Settlement | Receiving pending salary, bonus, leave encashment, gratuity |
During the notice period, you are still an employee and entitled to your usual salary and benefits. If the employer wants to waive the notice period, they must pay in lieu of notice.
Similarly, if you want to leave immediately, you may have to pay the equivalent salary unless the employer waives it.
Clearance is the next big step. You’ll need to return office assets like laptops, ID cards, files, and get approvals from your reporting manager, IT, admin, and HR. Without this, your full and final settlement can get delayed. Some companies also require you to complete an exit interview.
Once clearance is done, your Full and Final (FnF) Settlement should be processed within 30–45 days. This includes unpaid salary, variable pay (if any), earned leave encashment, and gratuity if applicable.
The Payment of Gratuity Act, 1972 states that if you’ve completed 5 or more years of continuous service, you’re legally entitled to gratuity.
If you’re unsure about your gratuity eligibility, read our full blog on How to Claim Gratuity When You Leave a Job.
And if you suspect your contract lacks clarity or contains illegal clauses, our blog on What Is a Legal Employment Contract and What It Should Contain can help you understand where you stand.
Make sure you ask for a relieving letter, experience certificate, and a copy of the full and final settlement. These are important for your next job and to legally prove you exited properly.
If your employer refuses to issue them despite proper resignation, you may file a complaint with the Labour Commissioner or approach legal aid.
Leaving a job on the right note isn’t just polite—it protects your long-term professional reputation and rights. Do it by the book, and you’ll walk away with everything you’ve earned—intact and complete.
In India, resigning legally means following your employment terms and respecting applicable labour laws. Your notice period, exit process, and final dues all depend on the terms laid out in your appointment letter or employment contract.
If you leave without serving notice or completing formalities, the employer may withhold your salary or issue a negative reference.
Legally, there’s no universal notice period set by law for private employees, except for certain cases under Shops and Establishments Acts of various states or Standing Orders under the Industrial Employment (Standing Orders) Act, 1946.
So, the terms in your appointment letter usually prevail unless they violate any labour laws.
In case of dispute—such as non-payment of final salary or forced notice extension—you can:
- Send a legal notice demanding pending dues
- File a complaint with your Labour Commissioner (if your salary is below ₹18,000/month)
- Approach the local Labour Court for remedy
You’re also entitled to gratuity under the Payment of Gratuity Act, 1972 if you’ve completed five years of continuous service. Gratuity should be paid within 30 days of your last working day.
If your employer refuses to issue a relieving letter or experience certificate despite you serving proper notice, it can amount to unfair labour practice. You can report this to the Labour Department or request intervention via legal notice.
No employer can withhold your FnF (Full and Final) settlement without justification.
Always retain copies of your resignation email, asset return receipts, salary slips, and any HR correspondence. These documents can protect you in case the employer tries to make post-resignation claims.
If your resignation follows a hostile work environment, read our blog on What to Do If You’re Harassed at Work – Legal Remedies Explained to understand your rights and how to legally protect your exit.
FAQs
1. Is it compulsory to serve the full notice period?
Not always. You can offer to buy out the notice period or ask for a waiver, if allowed by your contract.
2. Can my employer reject my resignation?
No. You have the legal right to resign. They may delay relieving, but cannot reject a valid resignation.
3. What if the company doesn’t pay my final salary?
You can file a complaint with the Labour Department or send a legal notice.
4. Is gratuity part of full and final settlement?
Yes, if you’re eligible under the Gratuity Act.
5. Can I resign while under investigation or show cause notice?
Yes, but the company can still complete the inquiry. Your FnF may be delayed based on its outcome.
