Is it necessary to serve notice after employment contract expires?

Hi,

I am working as contract employee with one of the companies in India. My contract says I need to work a minimum of 12 months and this October it will be 12 months. However, when I asked my employer about resignation they said I can only resign and will have to serve two months notice period after the minimum contract period (which is post October 2022). The contract also mentions that if I resign prior to 12 months I will have to pay them 1 lakh rupees.

I am not sure whats the right thing to do at this point. Am i really supposed to serve notice period after 12 months? Should I serve a notice period now (August 2022) to get released during my contract period itself to get released this October (2022). Please advice. I can share contract letter if required.

Thanks
18th August 2022

Since it is mentioned that you will have to serve a minimum period of 12 months, it means the appointment will not automatically come to an end after the 12-month period is over. So notice period has to be served.
This view requires confirmation after seeing the contract letter.
18th August 2022 From India, Mumbai

Hi,

Please follow the proper separation process and provide notice period as required. Please refer to the separation clause in your contract of appointment. If 2 months notice not mentioned in the contract then you are not under any obligation to serve 2 month notice.
18th August 2022 From India, Madras

Once the fixed term for which you were appointed is over the contract stands terminated automatically. If the contract is to end in October and you are ready to remain in service till October, why did you mention about resignation? You should have simply skipped the offer to renew the contract post October. Now, don't say anything about resignation and complete the original period and once it is over, just leave. When you start doing the handing over, they would come up with the offer to renew the contract which you may refuse at that time.
18th August 2022 From India, Kannur

Hi all, Thanks all for your responses. I am attaching my contract that mentions about notice and resignation for your reference. Please let me know once again.
18th August 2022

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The document is not legally valid since it is one sided and even the cost of training (Rs 1 lakhs) is mentioned beforehand
18th August 2022 From India, Kannur

Actually this was signed with a stamp paper.
18th August 2022

No issue. The contract ends automatically and after that there will be no employee employer relationship.
18th August 2022 From India, Kannur

@Madhu. T.K, Are there chances that it could be as per @KK!HR comment also?
18th August 2022

That applies to leaving the company before 2 months. If you are leaving the company two months before, naturally, the notice period clause will be applicable. Moreover, the bond amount (though it is illegal because the amount of training cost is mentioned beforehand) will be effective then. The employer cannot insist two things at a time, he can either ask to serve notice period or ask to pay the bond amount of Rs 1 lakh. at the same time, the employer's demand that you should serve two months (notice period) after the contract period has ended is basically wrong.
19th August 2022 From India, Kannur