Kerala High Court: Forcing Employee to Continue After Resignation Amounts to Bonded Labour

The Kerala High Court has held that an employer cannot reject an employee’s resignation merely citing financial crisis, observing that such refusal may amount to “bonded labour” under Article 23 of the Constitution.

Justice N. Nagaresh ruled that once a resignation complies with contractual terms, it must be accepted unless there are valid grounds like pending disciplinary proceedings or notice requirements.

The Court directed Traco Cable Company Limited to accept the resignation of its Company Secretary, clear salary arrears, and relieve him within two months.

[Greevas Job Panakkal v. Traco Cable Company Ltd. & Ors]