Facing Legal Threats for Skipping Notice Period: How to Handle Missing Documents and Tax Issues?

Hello everyone,

I was working as a software engineer in a corporate office in Bangalore for 3.6 years. After that, I switched to another company and worked there for only 1.5 months before quitting due to some personal reasons.

According to the appointment letter from my second company, the notice period is 2 weeks or monthly gross pay in lieu for probationers. However, I resigned without serving the full notice period; I only worked for 4 days.

During a discussion with the HR manager on my last day in the second company, I was threatened with legal action for not completing the notice period. They considered my exit unprofessional and refused to provide a relieving letter. I offered to compensate for the remaining 10 days of notice period, but both the reporting manager and HR manager did not agree. They demanded a payment of 2 Lakhs rupees (equivalent to my 4 months' gross salary) for not serving the full notice period. As my resignation was not accepted, I returned my ID card and other belongings and had to leave the company.

Now, as I plan to join a new company, I am unable to obtain necessary documents such as a relieving letter, PF withdrawal form, and Form 16 from my second employer. Without these documents, I cannot show my service at the second company to my new employer. I have requested to transfer the PF amount from my previous employer to the second company's PF account.

I would appreciate clarification on the following:

1. What legal actions could my second employer take for not serving the full notice period, considering I informed them about my exit and was not absconding?

2. Can I transfer the PF amount from the second employer to my new company without attestation from the second employer? If not, how can I proceed with withdrawal?

3. Will there be any issues during IT computation for this year as my second employer refused to provide Form 16? How can I file an income tax return without Form 16?

Thanks and Regards,
Muthuraman

I have gone through your query. I am of the following opinion:

Regarding your query 1:

The second employer may issue you a legal notice initiating legal action against you pertaining to breach of contract. It all depends upon only due course of time, and you have to be in a position to defend the same.

Regarding your query 2:

You have to apply in Form-13(R) through the new employer at the EPF Office from which transfer is sought, clearly stating new and old EPF Numbers. You have to obtain a new EPF Number from your new employer. The new EPF Number will be allotted by the new employer. For PF withdrawal, get the sign of gazetted officers in the PF Form, and you can forward the same to the PF office.

Regarding your query 3:

You have a legal right to receive the Form 16A from the second employer. For filing ITR with the department, you should need to have your salary breakup and the amount of TDS which the employer has deducted. Moreover, no document needs to be attached while filing income tax return, since the new income tax return forms are Annexure-less. So, it is not necessary for the original, nor the photocopy of your Form 16A to be required to file along with your income tax return.

You have to fill some details of Form 16A such as employer TAN, income earned as professional, and tax deducted at source in your ITR form.

I am a lawyer in Chennai.