‘You can’t force employees to work against their will’: Kerala HC tells PSU

Kochi: The Kerala High Court observed that an employer must accept an employee’s resignation unless conditions in the employment contract are violated or disciplinary proceedings for grave misconduct are justified. Refusing resignation in other cases would amount to bonded labour, prohibited under Article 23 of the Constitution.

The judgment came while hearing a plea by a company secretary of a public sector undertaking (PSU), whose resignation had been rejected. The PSU had asked him to resume duty and justify why disciplinary action should not be taken, citing financial difficulties as a reason for retaining him.

Justice N Nagaresh noted that financial emergencies cannot compel an employee to work against their will. The court said the PSU’s contemplated disciplinary proceedings were effectively an attempt to violate the petitioner’s right to resign. It also highlighted that the PSU had defaulted on the employee’s salary since October 2022.

The court considered the personal circumstances of the petitioner, who had resigned after the death of his father in 2020, leaving behind a mother with neurological and psychiatric ailments. The petitioner was unable to secure alternative employment until the PSU initiated steps to release his membership from the company.

The Kerala High Court directed the PSU to accept the resignation and relieve the petitioner within two months, and to pay all due salary arrears, leave surrender benefits, and other terminal benefits, considering the PSU’s financial position.

The court emphasised that resignation is a fundamental right of an employee and can only be refused under specific conditions, such as breach of contractual notice period or pending disciplinary action for serious misconduct. Refusal without justification, the HC said, constitutes bonded labour.

In this case, the petitioner had tendered resignation in line with his contrac Vt, and there was no evidence of misconduct or breach of notice period. The PSU’s attempt to c ompel the employee to continue working due to its financial situation was found unlawful.

Justice Nagaresh underlined that employees cannot be forced to work under duress and must be allowed to exit employment while receiving all due benefits. The court’s ruling reinforces the principle that resignation cannot be arbitrarily withheld, and any attempt to do so violates constitutional protections.
(With PTI inputs)