Madhu.T.KCompelling an employee to remain with one establishment itself is illegal. Not relieving an employee who has completed the formalities is another illegality. Demanding 5 lakhs to relieve an employee is just like demanding ransom! But how can you question it? What will happen to you if you deny it and reach any appropriate authorities like Labour Officers? You will again get a negative feedback in the background verification. Therefore, only an amicable settlement is the solution for such situations. Try to find a solution by means a conciliation in the presence of somebody who is acceptable to the management. To start with, talk to the MD of the organisation because sometimes, this may be the act of your project leader/ your reporting officer and the MD may not be aware of these things.
From India, Kannur
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