Relieving letter on hold due to outstanding with Client - CiteHR
Umakanthan53
Labour Law & Hr Consultant

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Hi,
I need an urgent help on my case. I was working as an assistant manager sales in a freight Forwarding company and I onboarded a client which is a public limited company. We imported few machines for the client and our bill was about 22 lakhs, client paid half and about 10.5 lakhs are still outstanding... He has approved all the bills and has not refused to pay but giving further dates for payment and not honoring them. In the meanwhile I have switched job as I got better opportunity. I thought client pay the money and I will be relieved. But client has not paid and my ex company although accepted my resignation and gave me a nice farewell, they are not giving f & f and relieving letter. I need relieving letter as same is required in new company. While doing business with the client the contract was between my x company and client and I was just a sales. I never signed an agreement that said that my relieving will be on hold incase of outstanding s. What is the labor law, can they hold my relieving or I can fight for it. As there is no fault of mine and I am being penalized just because I thought giving some business to company as a job responsibility. Please help.
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Dear Rahoul,
No labor law would be of any help in the situation you described as your Employment was not in the capacity of a workman under the ID Act,1947.
Your argument about your no role in the sale deed is reasonable and tenable too. In such a situation, the inaction of the Company to issue formal relieving orders to you after accepting your resignation and physically relieving you of your services in the organization, tantamounts to breach of the implied exit term of the contract of employment against which you can only institute a civil suit. But it would be time consuming as you have just switched your job to some other company and the need of the hour is a formal document of relief from your previous employer.
Therefore, tactical approach to the issue is more preferable than confrontation. Better seek an audience with the CEO of the company and convince him about the need of a formal relieving orders from him. Similarly, explain the entire episode to your present employer and if possible, request the waiver of the submission of a formal relieving order from the previous employer in the light of the other employment documents available.
Possibility is there that a prudent employer can very well understand the fallacy of a wrong decision taken by another employer.
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