Difference between "Voluntary retirement" and "Resignation" - Indian Laws - General

Difference between Voluntary retirement and Resignation In the case of Reserve Bank of India and Anr. v. Cecil Dennis Solomon and Anr., reported in (2004) 100 FLR 441, this Court has laid down that in service jurisprudence there is a difference between voluntary retirement and resignation as they convey different connotations.- It has been held that voluntary retirement and resignation involve voluntary acts on the part of the employee to leave service and though both involve voluntary acts, they operate differently. One of the basic distinctions between the two is that in the case of resignation, it can be tendered at any time but in the case of voluntary retirement, it can only be sought for after rendering prescribed period of qualifying service. In the case of resignation, a prior permission is not mandatory while in the case of voluntary retirement, permission of concerned employer is requisite condition. Under rule 16 of the 1958 Rules, an employee who seeks voluntary retirement has to give three months notice to enable the employer to complete the designated mode of acceptance [See Halsbury s Laws of England, 4th Edition Vol. 9 Page 133]. Lastly, in a given case , the appointing authority may refuse to waive the said notice period which shows that resignation may be unilateral whereas voluntary retirement is bilateral. A similar question came before this Court in the case of UCO Bank and Ors. v. Sanwar Mal decided on 11.3.2004 vide Civil Appeal No. 3192 of 1999 unreported, in which this Court has inter alia held that in the case of resignation , the relationship of employer and employee terminates on acceptance of resignation whereas in the case of retirement , voluntary or on superannuation, the relationship continues for the purposes of payment of retiral benefits. [JAIPAL SINGH VERSUS SMT. SUMITRA MAHAJAN AND ANOTHER- 2004 (4) TMI 610 - SUPREME COURT]