• Company not providing relieving letter

Hi,

So my wife had worked with a company in 2017 for 6 months. For personal reasons she didn't serve the notice period and absconded. Now this has come up in the background verification with the new company and they are asking for relieving letter. 

Unfortunately the previous company is not ready to give the letter despite the appointment order saying that if dues are paid then it should be possible. 
Is there any legal recourse here or any other recourse here. 
The old company is registered in Chennai and new company in Bangalore
Asked 4 years ago in Business Law

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15 Answers

You need to send them a legal notice and if not resolved file case with labour commissioner office or court

Prashant Nayak
Advocate, Mumbai
32467 Answers
200 Consultations

- As per Specific Relief Act, if any employee quits before the notice period, the Employer can only recover the Notice pay, and the Company cannot force to serve the entire notice period.

- Further, the resignation decision is the employee’s decision, and the employer cannot sue for breach of contract, if the employee leaves without serving contractual notice. 

- Further, no employer can refused to return the original certificates or to issue relieving letter .If they are doing so, their act is illegal, unjustified and against the fundamental rights of the employee.

- Further, the employment bond with the negative covenant is valid and legally enforceable, if the parties agree with their free consent i.e. without force, coercion, undue influence, misrepresentation and mistake, but it is not enforceable, if it is either one sided, unconscionable or unreasonable.

- Further, section 27 of the Indian Contract Act prohibits any agreement in restraint of trade and profession.

- Since, your wife has not served the notice period and not pay for the same , then she should contact the said company that after getting the relieving letter and joining the other company she may deposit the notice period as given in the appointment letter , and if refused then send a legal notice for the same. 

Mohammed Shahzad
Advocate, Delhi
14479 Answers
221 Consultations

Your e we ice did not serve the notice period and absconded 

 

2) in such cases companies refuse to give relieving letter to employee 

 

3) you can take legal proceedings against company to issue you relieving letter 

Ajay Sethi
Advocate, Mumbai
96868 Answers
7814 Consultations

You can make a basic pay of  Notice period and take the Relieving letter or Convince new company that Relieving letter won't be able provide if they are accepting to join then its well n good.

Ganesh Kadam
Advocate, Pune
12987 Answers
262 Consultations

Yes,Definitely. 

You have legal recourse under the law. 

Please mention day ,date and month of Year 2017 when she left the previous employer. 

I would suggest you when ever you ask or seek advice be desist to state that your wife absconded from previous employer which has reference of negative reviews and perceptions. 

Ramesh Pandey
Advocate, Mumbai
2541 Answers
8 Consultations

Unless your wife serve the notice it is a breach of contract and you cannot have any legal recourse.

Swarupananda Neogi
Advocate, Kolkata
2973 Answers
6 Consultations

1. If there was Notice period or salary in lieu of notice period procedure had to be followed, as per the appointment order received by the old Company, did she pay the salary in lieu of notice period?. If she has followed one of the procedures, the previous Company is bound to provide her with relieving letter.

2. You can send a legal notice to the previous Company to issue relieving letter, since as per your narration that " despite the appointment order saying that if dues are paid then it should be possible ".

Shashidhar S. Sastry
Advocate, Bangalore
5403 Answers
329 Consultations

Serve them with a legal notice and than file a specific performance suit against them 

Rahul Jatain
Advocate, Rohtak
5365 Answers
4 Consultations

You never bothered about this situation earlier when you abruptly left the company without following the procedures or rules and regulations. 

Now it's more than three years that you speak about the law without considering what you have done earlier. 

Well the company is well within their rights to deny issuing relieving letter if they have already declared the employee as absconding.

You cannot legally force the company to issue relieving letter even through court of law  for the said reasons. 

However you may send a request letter requesting the relieving letter with accepting their terms for this.

It's up to the company to consider your request. 

T Kalaiselvan
Advocate, Vellore
87068 Answers
2338 Consultations

File case in labour for directions to issue relieving letter. And your willingness to pay dues if any.

Yogendra Singh Rajawat
Advocate, Jaipur
22991 Answers
31 Consultations

Issue a legal notice demanding the same, after that you can approach jurisdictional labour court.

Mohammed Mujeeb
Advocate, Hyderabad
19306 Answers
32 Consultations

RELIEVING LETTER NOT ISSUING WHAT TO DO

Copy of the e-mail resignation letter sent to past employer can be shown to the new company. If new employer wants relieving letter, no worries, get the hard copy of resignation letter and get this received by any team member of the HR team.

In your offer letter or appointment letter, there will be a clause of notice period and the time duration to serve the notice period. Unless you don’t serve the full notice period, you can’t get your relieving letter.

There will a subsection of compensation not for serving notice period under the clause notice period mentioned in your appointment letter or offer letter. If you agree to compensate for not serving the notice period, nobody can stop you from receiving your relieving letter legally.

So, check your offer letter or appointment letter and find out the clause which mentions the compensation from both HR and your side, not for serving the notice period.

New HR wants you to join on immediate basis. You need to check if in the company, there is any option available for buyout notice with the last or new HR. Not serving notice period is compensated from both HR and employee. If it is not given there, you should address it to your HR. They will not relieve you before the notice period and ask you for extra time.

So, check your resignation letter, if there is clearly written your last date working in the company or early reliving date. If it is not mentioned in the resignation letter, you can prepare other resignation letter which has quoted the early resignation date, email date and your last day in office.

Prepare notes which include emails, resources, and docs etc. and you can hand them over to the responsible person and have a signed copy safely with you. This responsible person can be anyone whether he is HR or the manager.

If you have served your notice period, suddenly a new HR has joined and you are not relieved from the current HR still, you can go to the new HR with this issue for it you have to send new HR acceptance copy of resignation.

If you have served your notice period, but you have not get the relieving letter from present HR besides of making requests too many times, the last resort you have is to sue the company. But make sure you have proper documents with you such as the proof that you have served the notice period, appointment letter or offer letter.

Often it happens that on your last working day, HR says that organisation will mail the relieving-cum-experience letter on your personal email-id, but they do not do it for long time and it makes you suffer in the new job for incomplete documentation. In that case, keep pinging previous organisation for the same on mail and phone and if they do not give you the relieving letter, try with labour court and get the matter resolved with their help. You can also visit Ministry of Corporate Affairs website to make a legal complaint against the company. Keep in mind that do not make a negative comments about the organisation on any social media or review website, otherwise it may hamper your relation with the organisation and may increase your wait to collect the letter.

There may be various rules as per companies but no company can deny you from giving relieving letter otherwise law is to rescue you.

SC expounds: "To resign is a Right of an Employee, cannot be forced to serve in case he is not willing",

November 28,2018:

Supreme Court has declared in the judgment of the case –Sanjay Jain v. National Aviation Company of India Ltd, through Division Bench consisting of Justice Arun Mishra and Justice Vineet Saran that,“ To resign is a right of an employee who cannot be forced to serve in case he is not willing until and unless there is some stipulation in the rules or in the terms of appointment or disciplinary proceedings is pending or contemplated which is sought to be avoided by resigning from the services.”And based on this declaration, Apex Court has concluded that the Bombay High Court has erred in law in holding otherwise.

The appellant was aggrieved by the judgment and order passed by the Bombay High Court on September 7, 2010, dismissing writ petition No. 1740/2010.The question involved has been whether the appellant ceased to be an employee of the respondent on October 1, 2006 as 30 days’ period ended on that very day.

The appellant joined the services of Air India Ltd. as Assistant Aircraft Engineer in Major Maintenance Division of Engineering Department with effect from September 1, 1992.As per the terms and conditions, stipulated in his appointment letter, he was required to serve Air India for a minimum period of five years. As on the date he  resigned, he had completed five years of service.

The Certified Standing Orders framed under the Industrial Employment (Standing Orders) Act, 1946 as introduced in Air India Ltd. and as applicable to the establishment, required the employer to define the terms and the conditions of applicable to a workman and inform him of the same.

The Certified Standing Order, deals with the condition under which an employee can tender his resignation. He is entitled to receive the certificate of service rendered at the time of cessation of his employment. The Certified Standing Order confers a right on the employer, under the Act of 1946, not to accept the resignation if at the relevant time of his resignation any disciplinary action is pending or is contemplated.

The Court has pointed out that it is apparent from a bare reading of the provisions contained in Standing Order 18 of the Industrial Employment (Standing Orders) Act, 1946 that workman has a right to resign from the services by giving a notice of the period as prescribed under Standing Order 17 which provides termination of services by serving 30 days notice upon a permanent workman and seven days notice with respect to workman who is on probation and temporary workman by serving a 24 hours notice. Thus, for a permanent employee, a period of 30 days is provided to terminate or resign as is apparent on a conjoint reading of provisions of Standing Orders 17 and 18.

In the Court’s opinion, from a bare reading of the provisions contained in Standing Order 18, it is crystal clear that a permanent employee has a right to resign from the services by giving a notice of the period of 30 days as prescribed under Standing Order 17, and is entitled to obtain certificate from the employer for the period services have been rendered.

Clause 2 of Standing Order 18 provides that in case resignation is submitted with immediate effect or at any time before expiry of notice period, acceptance is necessary. Acceptance of resignation is not required in case a notice has been given of 30 days. It would operative from and effective on the lapse of the period.

It is right of a workman to serve an employer and to resign also by serving notice of 30 days. The bond to serve was only for five years as stipulated in his order of appointment. The period of bond to serve was admittedly over. There is no other Standing Order or Rule which puts a fetter on an employee to resign or confers power on the employer to reject a resignation.

No disciplinary proceedings was pending or contemplated against an employee in the case, when he resigned. The resignation became effective after lapse of 30 days period. There was no power with the employer as per Standing Order 18 to reject such a resignation. Moreover, the bond period of five years service was already over.

A case of voluntary retirement stands on a different footing than that of resignation. Voluntary retirement is with certain civil consequences of monetary benefits. It would depend upon the phraseology used in a particular provision whether prayer made for the resignation or for voluntary retirement is required to be accepted or it takes effect without acceptance.

In the facts of the case, in the Standing Order 18, there is no provision for acceptance of resignation, notice is served for requisite period of 30 days, obviously, the appellant had the right to resign from the services.

In view of enunciation of law and on consideration of the provisions contained in the Standing Order 18, in the facts and circumstances of the case, the Court has been of the opinion that appellant has rightly terminated the relationship by serving the requisite notice for resignation.

The Court has held that in this case, there is no such requirement of acceptance by such an employee under the provisions of the Standing Order 18 read with 17. Thus, the decision in the case – Moti Ram v. Param Dev and Another – (1993) 2 SCC 725 paragraphs 16 and 18 ,heavily relied upon by the Respondent’s counsel , is not applicable ,as factual matrix in that case is different from this case.

The Supreme Court has allowed the appeal and quashed the HC’s judgment and order and the order passed by the respondent- employer declining to accept the resignation. The benefits which may be available shall be paid to the appellant. Provident Fund with the prevailing rate of interest from time to time. The gratuity, if payable or any other benefit, shall be paid with interest at 6 pc per annum. Outstanding amount, if any, has been ordered to be paid within three months from the date of the judgment.

 

Kishan Dutt Kalaskar
Advocate, Bangalore
6179 Answers
490 Consultations

1. On what condition your wife will take legal actions against her previous employer from where she left the job without giving any information.

2. In this case your wife should disclose real situation to present employer and request them to proceed with offer letter without relieving letter from employer of 2016. 

Mohit Kapoor
Advocate, Rohtak
10687 Answers
7 Consultations

Dear Sir,

It is suggested that you don't fill the details of the previous job which was absconded and join the new job without revealing that information. 

Ganesh Singh
Advocate, New Delhi
6769 Answers
16 Consultations

The new company willd emabd a relieving letter but you should tell them the exact story as to what happened. Maybe they will understand.

Rahul Mishra
Advocate, Lucknow
14107 Answers
65 Consultations

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