In a recent judgment, the Supreme Court ruled that if an employee withdraws their resignation before the employer has officially accepted it, the resignation cannot be considered valid. The court emphasized that resignation becomes final only when the employer formally communicates its acceptance to the employee. Without this official communication, the employee retains the right to retract their resignation.
New Delhi: In a recent judgment, the Supreme Court ruled that if an employee withdraws their resignation before it has been officially accepted by the employer, the resignation cannot be considered accepted.
This ruling came as the court reinstated a Railways employee.
The court highlighted that,
“A mere internal communication about accepting the employee’s resignation letter could not be said to be acceptance of the resignation letter. Such an acceptance has to be officially communicated to the employee.”
The petitioner, who served 23 years with the Konkan Railway Corporation since 1990, submitted his resignation in December 2013, with an effective date after one month.
Despite the resignation being accepted internally from April 7, 2014, no official communication was made to the employee. On May 26, 2014, the petitioner withdrew his resignation, yet the Railways relieved him on July 1, 2014.
Further complicating matters, the Railways asked the employee to report for duty, citing “unauthorised absence” from April 28 to May 18, 2014.
The Supreme Court noted that this request for the employee to return to work indicated that,
“There was no finality to the letter of resignation dated 05.12.2013.”
The employee argued that since his resignation never reached finality, his termination from the job was unjust.
The petitioner argued that he remained in consistent communication with the employer and even reported to duty when requested, which indicated that the employer had not accepted his resignation.
After the Railways relieved him from service, the petitioner approached the High Court, where a single-judge bench ruled in his favour. However, the Railways appealed the decision, and a Division Bench reversed the ruling.
A bench comprising Justices PS Narasimha and Pankaj Mithal upheld the High Court’s single-judge order, noting that the petitioner had reported for duty and maintained regular contact with the employer, making it clear that,
“It cannot be said that the appellant resigned from the job.”
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The court’s ruling further stated,
“The respondent-employer strongly relies on the letter of acceptance of resignation dated 15.04.2014 and submits that it has come into effect from 07.04.2014. We are inclined to accept the submission made by the appellant that the letter dated 15.04.2014 is an internal communication. There is no clear evidence about the service of such a letter on the appellant. Further, it is also not denied that the appellant has been continuously in touch with the respondent.”
The Supreme Court’s ruling strengthens employee rights by reinforcing the principle that resignation is a two-step process that requires both submission and formal acceptance. This decision serves as a reminder of the necessity for proper communication and procedural adherence in employment matters, providing clarity for future cases involving resignation disputes.
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