Kerala High Court Rules Against Bonded Labour in Employee Resignation Case

In a landmark decision, the Kerala High Court has declared that refusal to accept an employee's resignation, without any breach of the employment contract, amounts to bonded labour. This highlights a case involving a public sector undertaking's company secretary who was denied resignation due to financial constraints.

Justice N Nagaresh emphasized that resignations subject to contractual conditions, sans any misconduct or monetary loss to the company, must be accepted. The ruling affirms that employers cannot impose forced labour, as forbidden under Article 23 of the Indian Constitution, when the sole reason is internal financial challenges.

The court responded to the secretary's plea against issued show-cause notices by ordering the PSU to facilitate his resignation expediently. It also stressed on the settlement of any outstanding dues, reinforcing the employee's right to voluntary resignation and ensuring compliance with constitutional mandates.