Facing a Tough Exit: Can My Company Withhold My Relieving Letter and Benefits?

Hi All,

I have been working with my current employer for the last three years, and now I have decided to join another firm. The ideal notice period is two months, but I can't serve the complete notice period. I have informed my HR that I am willing to pay notice pay in lieu of one month's notice as I will be serving for a month, but she told me that this decision is entirely in my manager's hands.

I have witnessed incidents in my company where an employee was relieved in five days, but that was in another team. Our team manager has a dubious distinction of not releasing any employee before two months, and if an employee leaves before that, he labels them as absconding, and the company never provides a relieving letter.

I would like to ask the following questions:
1) Is there any legal action that could be initiated against me if I don't serve the two-month notice period and only serve a month's notice period while paying a month's basic salary in lieu of the remaining period?
2) Can a company withhold my relieving letter even if I serve for a month and pay a month's salary in lieu of the notice period?
3) What is the importance of a relieving letter if I have all my payslips, offer letter, and appraisal letter to support my experience?
4) Does the company have the right to withhold my salary, benefits, and PF remunerations?

Any help in this tough situation would be appreciated.

Thanks,
Vikas

Dear,

The response:

1) Is there any legal action that could be initiated against me if I don't serve the 2-month notice period and only serve a month's notice period and pay a month's basic salary in lieu of the remaining period?

The company can recover the notice pay salary and make the adjustment in your F&F. In case you serve one month, then you will have to be ready for the notice pay agreed as per your terms of appointment.

2) Can a company hold back my relieving letter even if I serve for a month and paid a month's salary in lieu of the notice period?

It cannot.

3) What is the importance of a relieving letter if I have all my payslips, offer letter, and appraisal letter to support my experience?

It depends on your next employer. If you are going to be self-employed, nothing matters.

4) Does the company have the right to hold back my salary, my benefits, and PF remunerations?

They cannot.

With Regards

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Thank you for your message. Below is the corrected version of your text:

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Thanks for the reply, Sir. The clause in my Appointment letter is as mentioned below:

"This employment may be terminated by either party by giving 60 days' notice. Whilst the company reserves the right to release you upon your resignation prior to the conclusion of your notice period without paying notice pay for the balance notice period, notice pay in lieu of notice is acceptable only on approval from your unit head."

Does this statement mean I have no right to pay notice pay in lieu of the notice period unless it is acceptable by my manager? 🤔

With this clause in my agreement, will it still be okay to ask you the following:

1) Is there any legal action that could be initiated against me if I don't serve the 2-month notice period and only serve a month's notice period and pay a month's basic salary in lieu of the remaining period?

2) Can a company hold back my relieving letter even if I serve for a month and paid a month's salary in lieu of the notice period, and if they do, can I initiate legal action against them?

3) Does the company have the right to hold back my salary, my benefits, and PF remunerations?

Regards,

Vikas

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I have corrected the spelling, grammar, and punctuation errors in your text. Let me know if you need any further assistance.

Dear Vikas,

Please check your contract/terms of employment. What does the separation clause say? If it states that an employee has to give a 2-month notice or salary in lieu of the notice period, then you can give one month's notice and one month's salary in lieu of the one-month notice period. However, if there is no mention that you can provide salary for the shortfall of the notice period, then the company may request you to work for 2 months. Legally, they may treat you as absconding without information and may withhold your settlement. If a future employer contacts them for a reference, they may attempt to tarnish your image.

Kindly review the terms carefully to avoid any misunderstandings.

Thank you.

Hi Vikas/Team,

The same has happened to me. I was working with a privately held consultancy company for its CMM Level 5 Client Company for about 1.5 years. On my offer letter, it is clearly mentioned that upon resignation from the company, the candidate has to serve a 90-day notice period or buyout the notice period by paying 3 months' salary in lieu of notice period. I resigned on the 10th and served the company for the complete month.

The main issue is that I was relieved from the Client Side for which I was hired. However, the company is not willing to provide me with my relieving letter as well as the service letter. Additionally, they have not made my payment for June 2010, which I had served. I am willing to pay the money in lieu of the notice period, but the HR manager is not willing to accept it, always citing it as an absconding case with no resolution.

I joined a new firm without documents. Currently, I do not need these documents. However, in the future, it will affect my career path if I apply to MNCs like TCS, IBM, etc., which conduct background checks. I am constantly in contact with my previous employer for the relieving documents but to no avail. I am only receiving humiliating treatment from them, as if I have committed a crime against them.

To add to the situation, they have released some other colleagues within 5-10 days who are about to be listed on the company's blacklist due to notices given to them regarding their misconduct in the company.

Team, please suggest a remedy for this issue as I am concerned about my future. If I continue with my present employer for more than a year, do I need to produce the relieving documents from my previous employer?

Thank you.

Please help me. I am working with a company that mentioned in the offer letter, as clearly stated:

"In the event you wish to separate, you will need to provide one month's notice in advance and serve a notice period. Failing to do so will result in forfeiting your salary."

However, they are forcing me not to serve the two-month notice period. What can I do?