New Delhi, Oct. 23: If an employee withdraws his resignation during the notice period, the employer is bound to accept that decision and let him work, the Supreme Court has ruled.

The court ordered a company to pay back wages and all retirement benefits to an employee whose letter withdrawing his resignation it had refused to accept. The judges pointed out that the employee had attained the age of retirement by the time the case concluded with the final judgment of the apex court on October 7.

S.M. Srikantha, a general manager with Bharat Earth Movers Ltd of Karnataka, had resigned on January 4, 1993. The management told him to continue to work till January 15.

On January 8, however, Srikantha withdrew his resignation. Yet, on January 15, the management “relieved” him.

The company, the court said, “has acted contrary to the law and against the decisions of this court” and its move “deserves to be quashed and set aside”.

Earlier, Karnataka High Court had dismissed Srikantha’s petition, holding “no illegality had been committed by the company”.

Hearing his appeal, the Supreme Court said it is the settled law that if a letter withdrawing resignation is submitted before the employee has been relieved, he should be deemed to be in continuous service.

“The relationship of employer and employee continued till the employee attained the age of superannuation (and) he would be entitled to full salary and allowances of the entire period he was kept out of service,” it ruled.