Stuck Between Jobs: How to Handle Withheld Salary and Relieving Documents?

Dear All,

I have resigned from my current organization and will be joining my new employer in about two days. I have also served the legally required notice period of 1 month. However, as I am handling an important project, the company is not willing to relieve me. Despite this, as they do not have an option, they have decided to withhold my salary and relieving documents.

I have informed my new employer about this situation, and they are willing to wait for the relieving documents. Unfortunately, the wait seems indefinite. Can anybody please advise me on how to handle this situation? Should I take any legal action or simply wait for a month or two?

Thank you.

S. Singh.

Dear Shailesh,

I think you should talk to the concerned person or someone close to you in the company where you have recently resigned and request them to relieve you. I understand the situation; it is common for organizations not to provide relieving letters to some individuals. However, you can try to personally request and convince them - this should be your priority.

It is entirely in their hands to provide you with a relieving letter. Is your new employer very strict about this? If you don't provide the letter, will you have to leave the new job? If it is crucial, then the most important thing, in my opinion, is to convince that person. You can approach either your old employer or the new one on this matter.

Give me some time to research the legal actions you can take.

Regards,
Lata

Dear Sailesh,

You should request your present company to issue you the release letter wherein they should mention the release date. This letter can be issued well in advance, and a conditional clause is given wherein it is mentioned "subject to due clearance certificate (full and final clearance certificate)." The certificate can be obtained at the date of release. Even if they do not give you the certificate, you can join with the release letter, and unless your previous employer can prove that there are any financial dues, no action can be taken against you, and it is deemed that you have been released from the services of the Company.

Withholding of salary without any valid reason is illegal and unethical. You can initially use persuasion, and in case of no results, you can go for legal options. However, the only thing I would advise you is that first, please determine if the legal option is worth your time and energy.

Regards,
SC

Lata / Swastik, many thanks for your replies. I have tried my best to convince my current organization to issue me a relieving letter, but they would not budge. Fortunately, I have an acceptance letter of my resignation which I intend to submit to my new employer. Based on your advice, I have spoken to my new employer, and they seem fine if my relieving letter is delayed for a longer period. The problem now is, would my current company ever give me the relieving letter. Withholding my salary and documents is unethical by all means, and the legal option is not going to help either. It feels so helpless...

Thanks once again.

Regards, Shailesh.

Dear Sailesh,

Now, you should start sending letters followed by reminders 1, 2, 3... and make a case with written evidence. Just remember, no employer can withhold release without a concrete reason, and the reason should account for some kind of business loss only. So, once you start writing letters and the company does not respond, you will have ample evidence to handle any future complications. Do mention the amount of your salary due in each letter.

Regards,
SC

Dear Shailesh,

I think Swastik is right; you should try that thing. Even the same problem was faced by me. I did many things, but in the end, no result came. You know, this is really becoming common nowadays; many companies do not provide relieving letters; on the contrary, they block the salary. First, try sorting out your salary.

Don't worry, and keep trying.

Thanks and regards,
Lata

Lata / Swastik,

My company says they will release the salary and documents after 2 months. This is certainly not appropriate, but for now, I have decided to wait for a while. I would start sending them letters after 2 months. Do you think waiting for this long to get everything would weaken my position? Should I start sending them letters after a month? In either case, I would keep updating this thread.

Regards,
Shailesh.

Dear Shailesh,

That totally depends on your new employer's thinking/behavior/nature. Generally, it should not affect your position, according to me. We can hope for the best. If you are capable and the best, your employer won't even ask for those relieving letters. Just try to impress your boss; I think it is the best key. Show him your great performance and work more efficiently.

Regards,
Lata

Hi Everyone,

I wonder why you are more attached to your new employer and not to the one who was taking care of all your requirements - salary, holidays, work, family... everything.

There are problems in every organization. If an employee is asked to stay to complete the work and then leave, some employees are trying to take legal actions - how strange.

Speak to your HR, HOD, or the TL, for that matter. Ask them if they can get a replacement for that project immediately. If they say no, then you should speak to your TL to assign any employee who is currently working to that task. Have you done a knowledge transfer on the tasks you are working on? If not, then how can anybody else take care of that work besides you? If yes, then discuss it with your PM. Explain your situation to them.

Current employers are not your enemies, but they might be tied up due to some situation not in their hands. They had to take this step - maybe.

At the same time, also convince your new employer to understand the situation. If you are an extremely valuable resource for them, they will not hesitate to shift your joining date and wait for you.

Think about it :)

Regards, Geeta Asst. Manager - HR

Dear Shailesh,

As per my thinking, you should ask for a written commitment from your current employer. In case he is not able to provide you with the same, then you can email a summary of the discussion related to your relieving letter and salary details and cc your new employer. If you don't receive any response regarding the finalized date for releasing the salary and relieving date, then you should send the same email as a reminder, requesting a reply.

Once the verbally committed date has passed, you can send them a registered letter with an attached copy of all the email communications for reference on the subject. I believe that as one of the most important resources of your current employer, your departure would be a significant loss for them.

I also believe that this approach will be effective.

Regards,
Nitin Jagdale
Manager, Human Resources

Hello Shailesh,

We both seem to be in the same boat. The only difference is that my current employer is demanding my one-month gross salary as I am leaving the organization in my probation period. But I too don't want to budge as this is my first salary. My current employer won't give me a relieving letter, and as a result, it only delays my joining formalities in a new organization.

Let's hope that only time will heal our problems!

All the best!

Regards,
Shriya Karve.

Dear Friend,

Regarding the above, you have not mentioned the notice period which has been specified in your appointment letter and the clause mentioned in your service rules/standing orders. Your management has abided by the terms and conditions as per the appointment letter and can relieve the employee from service for any reason after giving one month's notice.

Has your management informed you that your resignation has not been accepted for reasons such as pending dues, or is it not considered valid to take any action after the completion of the notice period? You can approach the labor department for necessary action.

Regards,
Ram.

Dear All,

Please be informed of the following:

After submitting the resignation letter, please try to obtain the acceptance letter of resignation from the current employer.

Every company will have clearance/no-due certificate formats. Fill out the formats and obtain verification of no dues from the accounts department.

Next, complete the employee's duties and responsibilities handover format. Fill out the format, or if one is not available, list all your job descriptions, functions, and any pending work (avoid mentioning irrelevant functions). Provide a copy to your reporting head and obtain their acknowledgment for your records.

If any laptops, computers, or stationery items are to be returned, ensure you receive acknowledgment in your records.

Complete the exit interview format, keep a copy for yourself, and then submit it to management.

Ensure there are no outstanding financial obligations to the company, such as petty cash balances, outstanding loans, educational assistance advances, training costs covered by the company, or signed surety bonds. Also, return important documents like personal employee files and original certificates.

If all the above steps are in order, there should be no concerns about obtaining the relieving order.

These days, employers often do not require relieving orders, and the demand for experienced employees is high, meaning new employers may not wait for a full month's notice period.

Move forward and focus on your new opportunity. In some cases, the current employer may deduct one month's notice pay from your final salary.

Do not worry; proceed with the new job, as any losses incurred can be compensated in the new role.

Furthermore, after obtaining acknowledgments for all handovers, submit a letter to the HRD department, GM Operations, and Managing Director of the current organization requesting the relieving order or at least a service certificate.

You can also seek referrals from HR network groups led by senior HR executives. They can assist in communicating your release from services to the company.

These guidelines are intended to be helpful to all. Please feel free to seek clarification or offer suggestions.

Regards,

Saravana Kumar K

shrivarsa@yahoo.co.in

Hi Shailender,

Swastik is very right. Start communicating the things in writing. Once you have a record of all written communication, you can take legal action against the company, provided you have served your notice period and have cleared all your dues as well.

Organizations also need to understand that every employee needs growth, and they should, in fact, wish them good luck if the employee has done their job well and is leaving the organization on a positive note.

Cheers,
Sujata

This is certainly a bad practice on the part of employers, and Indian employers tend to be short-sighted. They don't seem to understand that employees keep moving from one place to another. If employees serve the notice period, it is highly unethical to do something of this sort. Also, Indian employers don't understand that by holding onto employees who wish to leave, they are forcing employees to become disgruntled. Even if they remain quiet, a disgruntled employee, an employee without any motivation, is a loss in the long run.

Roomy Naqvy

Dear Shailesh,

Please read your appointment letter. If there is any clause stating that you can leave the organization with one month's notice, then they have to relieve you with all formalities. I think you have to wait for one month; they may try to pressure you.

Regards,
Sushil

Dear Shailesh,

In most companies these days, the relieving letter and full and final amount are released within a maximum span of 45 days from the last working day. As a requirement at the time of joining, new employers accept the resignation provided by the new joiner. Later, upon receipt of the relieving letter, it is submitted to the new employer.

You have mentioned that you have served the required notice period; hence, there should not be any problem. As mentioned by one of the members, please keep your new employer informed about the probable date of receipt of the relieving letter. You can ask for written communication from your old employer.

Please stay calm and concentrate on the new responsibilities coming your way.

Best regards,
Swati Jain

Dear All,

Thank you all for your involvement. At my end, I have served the required notice period of 4 weeks and have completed all the Knowledge Transfer and required formalities with the current employer. I agree with Geeta that the old employer is not an enemy and we should try our best to ensure that their functioning is not disrupted. As a matter of fact, we should ensure a smooth exit and make sure we do not burn down the bridges.

All I expect is that the employer behaves fairly as I have been fair and clear about all my dealings with the employer. The other thing is, had I been fired and given 4 weeks' notice or notice pay, I would have had to accept it and would have to start looking for a new job. The problem is we do not have any means to ensure that the employer behaves fairly with us, and the employer always has an advantage.

Nobody can withhold salary for the days already worked; at the most, they can hold future salary on grounds of further investigation if you have done something wrong. In your case, this does not arise as you have already left the job after serving the notice period. I agree with the advice given that you must write a letter (non-aggressive) stating that you have, as per the appointment letter, given due notice and therefore your salary should be released. But it is important that you have followed all the other procedures, e.g., NOC from accounts, if that is mentioned in your company policy. Similarly, what if you complain to the labor officer? I'm not sure of this step; I hope others can shed some light on whether this step can be taken in obtaining your salary.

You inform your new employer that your previous employer wants you to continue and, as such, not be relieved. In the meantime, you can provide a copy of your resignation to the new employer as proof that you have resigned from the earlier position. Additionally, you can show your appointment letters and related documents to demonstrate that you have worked for the organization.

Hi Mr. Sing,

I would advise that first you should write a letter to the company (Do CC to dept. heads, etc.) by questioning the reason for the delay in the Resignation process and know the final date of relieving, which they should reply to you in writing.

Also, mention that in the absence of any reply, the company has to pay you for all these days (the date from the expiry of your notice period to the current date) since their delay is hindering your joining formalities and causing a loss of income per day.

If the delay is due to your importance in handling the company's important project, then they should request you in writing to serve them for some more days. This copy should be submitted to your new employer. But they have no right to withhold your salary.

There is no question of waiting for 1-2 months since no one has seen tomorrow.

You should follow these steps, and if nothing works, then you can seek legal advice or consult an expert.

Regards, Priya J.

Dear All,

I have resigned from my current organization and will be joining my new employer in about two days.

I have also served the legally required notice period of 1 month. As I am handling an important project, the company is not willing to relieve me. However, as they do not have an option, they have decided to withhold my salary and relieving documents.

I have informed my new employer about this, and they are willing to wait for the relieving documents.

The wait seems indefinite.

Can anybody please advise me on how to handle this situation? Should I take any legal action or just wait for a month or two?

Thank you.
S. Singh.

Dear Shailesh,

I have been reading replies to your post. I want to know at what level you are working in the organization and what your designation is. Please also let me know the nature of your organization. This information will help in providing a suitable solution.

Regards,
Umesh Sharma

Dear Shailesh,

Every company has internal HR policies wherein when the employee resigns, his/her last salary is usually given along with the Full and Final Settlement. Many companies also issue a relieving letter along with F&F because they want to be doubly sure that the employee who has resigned doesn't have any dues pending which he/she needs to pay to the organization. Hence, the relieving letter and experience letter are usually given along with the F&F cheque. In case there are arrears or recovery from the employee, then the relieving letter and experience letter are not issued unless the employee pays for the recovery amount.

You can always show the resignation letter as proof when you are joining a new organization. Also, you can provide your immediate superior(s) / HR Dept numbers for reference checks. This will serve the purpose for the time being, and you can always inform them about the internal HR policies that your last company follows.

Hope this may help you.

Thanks and regards,
Chini.

If the current employer is not paying a handsome salary with other perks and fringes, and there is no career growth, then switching for a good job is the right of everyone. However, in every organization, during the period of a running project, no employer wants to let go of current employees in the middle of the project. When they hired you, if they informed you about the duration of the project, you should have thought before resigning. Please try to convince them; if they agree, then it's the best option; otherwise, you may need to make a sacrifice. If they do not disburse your dues, try to obtain a relieving letter from them. Please do not be emotional because your current employer is a reference for the next employer.

Wishing you the best of luck in your new job!

Thanks,
Aslam
Karachi, Pakistan

Dear Mr. Singh,

If you had signed any agreement or point related to the condition of completion of the assigned project, it is a key point of the appointment letter/agreement. In this case, you have to wait. Otherwise, if your new employer is ready to take your services, go ahead and forward a resignation to your ex-employer through any reputed lawyer.

Regards,
Rajan

Dear Sailesh and Neetu,

Hi, I am Pranab working in an IT company. Sailesh, as you had received the reply stating that your dues would be cleared after two months, please inquire about the following in detail:

a) Two months will be calculated from which date? It should be from the date of accepting the resignation letter.

b) Ask them to issue a relieving letter.

c) If your previous organization is an IT company, then it falls under the Shop and Establishment Act, or Factory Act. In this case, report the matter to the Factory Inspector or the concerned officer who issued the license to conduct business.

Inform them in writing both to the employer and provide a timeframe, stating that if you do not receive any reply within the stipulated date, the case will be escalated to higher authorities.

Thanks and regards,
Pranab
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A quick question before I can advise you... where do you work? In India or abroad? Please specify the country as every country has its laws.

PVQ

Hi, Shailesh.

I would like to add that if they have communicated with you orally, there is a risk of misinterpretation. Therefore, I advise you to safeguard your position by sending an email starting with, "As per our communication regarding my relieving letter and salary, I understand that I will receive the same from you after 2 months (specific date)." Additionally, mention that you have completed your notice period as requested.

Ensure that everything is presented in a diplomatic and professional manner to convey that this email serves as a reminder and follow-up for our mutual understanding. If you wish to keep others informed, you may include them by CCing relevant individuals or forward the email to ensure everyone is informed.

I hope this is clear.

Regards,
Sujit

Dear Shailesh,

As far as my knowledge is concerned, there is a clause in your appointment letter stating that if you leave the organization, you will have to pay one month's salary. Similarly, if your company dismisses you, they will pay you one month's salary. You can choose to exercise this option in accordance with the terms of the appointment letter clause no. Kindly accept my resignation letter with immediate effect and process my dues after the necessary statutory deductions, releasing me from my service. Your employer cannot withhold the salary and other dues owed to you. I recommend providing a firm letter to your employer, as some employers may not be as cooperative as you expect.

Shish

Dear All,

Answers to a few questions across the posts....

1. I worked with my previous organization (the one which is still withholding my salary) at a middle management level.

2. My previous employer is into contracting software resources to giants like TCS, WIPRO, etc. I worked with a lesser-known client.

3. I have been completely clear with all the terms and conditions in the appointment letter. I am not joining any company that competes with them directly or indirectly and have done all possible things to ensure that there is nothing lacking at my end which the previous employer can use against me.

Eventually, I have decided to wait for some more time and then I am going to hit back. I would be sending an email to some of the top brass of the company I was contracted to, tell them about my ex-employer, and also disclose some of the closely guarded secrets which are not in favor of the contracting company. I am sure if I do this, they would lose more than I have. I am not sure how unethical this would be... ;)

But I would warn them before I do so, just to be courteous.

Dear,

Please join the new company on the basis of the resignation acceptance letter and then send reminders. Your problem will be solved then.

With Regards
V. Sounder Rajan

E-mail: rajanassociates@eth.net, rajanassociateslawfirm@gmail.com

Dear All,

In a similar case, a candidate resigned from his present company on 2nd Aug. They coaxed him to complete the assignment for an infrastructure project company, which required him to go to Korea during his notice period. He was assured he would be released within 3 days of his return. However, it has now been around 10 days since he came back, and they are treating him very badly. They are threatening him to continue there for the next few months, or else they will sue him.

Can they sue him? Do they have any right to retain him if he has already served the notice period of 1 month? Please advise as he needs to inform the organization he has been offered to join regarding his date of joining (they have been considerate enough to extend his joining dates twice. The latest he can join is Monday, 13th).

Smriti

Hi, I worked at 24/7 Customer for 8 months. After that, I pursued my MBA. However, I did not obtain the Relieving Letter. It has been 2 years since I left the company. I have now completed my MBA in HR and wish to begin my career in HR. Can you please provide me with some guidance on this?

Hi,

I am stuck in a situation where I have resigned, and the company is holding my relieving letter.
1. My appointment letter says a notice period of 1 month by either party.
2. I resigned on 10th Sept 2009 and was supposed to be released on 9th October 2009.
3. Till 3rd October, they did not send me an acceptance mail of my resignation but verbally told me that they will release me on the last day.
4. Now, they say that they will give the relieving letter after one month from now. They also state that they have the right to know about the work and company I am going to.
5. They are also threatening to terminate me on some grounds of breach of trust if I stay back in the company from now. So, they have told me not to come to the office and collect the relieving letter later.

Kindly let me know what can be done. What rights do I have to ask for my relieving letter on time, and what are the HR policies?

Thanks in advance.

Hi,

I am stuck in a situation where I have resigned, and the company is holding my relieving letter. My appointment letter states a notice period of 1 month for either party. I resigned on 10th September 2009 and was supposed to be released on 9th October 2009.

Until 3rd October, they had not sent me an acceptance email of my resignation but verbally mentioned that they would release me on the last day. Now they claim they will provide the relieving letter after one month from now. They also insist on knowing about the work and company I am joining next. They are also making threats of termination on grounds of breach of trust if I continue to stay in the company. Therefore, they have asked me not to come to the office and collect the relieving letter later.

Kindly, let me know what can be done. What rights do I have to request my relieving letter on time? What are the HR policies?

Thanks in advance.

Kindly help me.

I have a 2-year bond in my offer letter. It is mentioned that I can break the bond at any time by paying 50k or providing a 2-month notice period or salary equivalent. I am prepared to pay the required amount. However, since I am on the client site, my manager is not accepting my resignation. They are referring to a policy of which I am unaware. I am willing to adhere to the terms outlined in my offer letter. Despite this, they are still not accepting my resignation.

Dear Shailesh,

Can you help with a commitment form template for persuading an employee to stay on if he wants to resign and the employer doesn't want to lose him?

I have the same problem. I submitted my resignation on 17th July 2016, but I have not yet received any acceptance from my current company. Despite sending them several reminder emails, I have not received any response. Instead, they are insisting that I sign a legal affidavit stating that I cannot join another company after leaving. They are also harassing me in front of other employees.

They are unwilling to show me the company's policies and have even taken two of my salary cheques as security in case I leave without notice, although I am serving the required 30-day notice period.

I am in a difficult situation as I need to start at my new company on 17th August. Please advise on how to handle this issue. Thank you for your assistance.

Resignation Dilemma: Seeking Advice

My friend has resigned from his current organization and will be joining a new company on the 17th of August. I submitted my resignation a month ago, but HR and management are not accepting it. Instead, they are asking me to sign a legal affidavit stating that I cannot work for any other organization. I am serving the legally required one-month notice period and have sent several reminder emails to both management and HR. However, they have withheld my salary and threatened that if I do not sign the affidavit, they will not accept my resignation.

Upon joining, they took two cheques equivalent to two months' salary from me, and they are now threatening to cash them if I leave the organization. They are not providing me with the company's policy.

I am unsure of what to do next. I feel stuck in this situation.

Regards