Can My Friend Demand a Relieving Letter? Seeking Advice on Next Steps

Dear friends,

Please read the case and kindly suggest. My friend was working with a pharmaceutical company. As per her terms of employment, she was not required to give any notice period to the company. On February 8, 2007, she submitted her resignation. However, her HR did not accept it. She went on February 9th just to give it one more try, but to no avail. She did not go to the office after February 9th and requested her relieving letter through email.

Now, she has joined another organization, but her current organization is not willing to provide her with the appointment letter unless she submits her relieving letter. My query is, "Does my friend have a right to ask for the relieving letter?" If "Yes," then what steps should she take to obtain it?

Please suggest to me, friends.

Regards, Kshama

Hi,

In matters like these, many things depend on the terms and conditions of employment stipulated in the Letter of Appointment issued by the employer, as the employer-employee relationship is governed by these and the prevalent law. In the instant case, we do not know if your friend was on probation or was a confirmed employee. Subject to the above limitations, I venture to reply as follows:

1) Employer-Employee relationship is a contract where both contracting parties must have an equal right to terminate the contract.

2) Such a contract has to provide for the rules for separation while an employee is on "probation" and also while the employee is a "confirmed employee."

3) Normally, employees on probation have to give no notice or even a reason to the employer if they wish to quit the employment. Similarly, the employer is under no obligation to give any notice/reason to the employee if he (the employer) wished to terminate the contract. This is fair!

4) After confirmation, a notice period may become obligatory for both.

5) If the employee follows the applicable commitment in 3 or 4 above as may be applicable, then the contract gets validly terminated, and the parties may consider themselves free of any obligations.

If this is so, there is no law that requires a "relieving" letter. It is just a custom that unscrupulous employers use to harass the employee under conditions when they do not like the employee leaving!! Legally speaking, the employee will be safe and above board if he follows the applicable stipulations of the contract of employment.

Regrettably, it is the receiving employer who can choose to be rational and not insist upon the relieving letter or be difficult and loyal to the cult of employers and insist upon the same. However, the receiving employer is NOT entirely WRONG if he should insist upon relieving letter in as much as he has a right to know if the separation from the earlier employer was "clean" and not fraudulent! Therefore, instead of looking for a generalized rule for universal application, each employer must decide each case on its facts and circumstances instead of blindly following some cult.

I trust the above will answer all your doubts and will provide you a clear picture of the issue. If you need more help, please do not hesitate to ask.

Regards,

samvedan

April 15, 2007

Hi,

As per the case that you have written and the solution by Samvedan is also satisfactory. However, I would like to add a few points. First, I would like to know the motive of the employer asking for a relieving letter. If he wants proof of experience, the latest salary slip can be shown along with a copy of the appointment letter, and this case should be communicated to the employer. If the employer is rational and the HR is employee-friendly, then the case is simple. So what I suggest is communication should be complete, and nothing should be hidden from the new employer.

Regards,
Kumar Manoj

Hello,

Thank you, Samvedan and Manoj, for providing me with a satisfactory answer to my query. As asked by Samvedan, my friend was in her probation period, but according to the terms of her employment, no notice period was required to be given to the employer.

Now, there is another issue as the employer has not even bothered to pay her the salary for eight days and her PF amount, for which they have no right. What steps can be taken for that? Please suggest.

Thanks and Regards,
Kshama

I would like to address a question from Manoj Kumar, 'why does the new employer require a relieving letter from the previous employer?'. Manoj, as per the laws, a person cannot be in dual employment at the same time; hence, a lot of employers insist on the relieving letter. But there may be cases wherein the exit is not amicable. In such cases, what we do is take an undertaking from the new employee. Since the employee is unable to submit the relieving letter, any issues arising from it are at the sole risk of the employee.

Now, that is really a serious problem, but do not worry. The PF amount is yours. Fill in the PF form and ask the employer to fill in their details, then submit it at the PF office. If he is unwilling to do the same, then I would suggest you clear all your dues from your previous organization. At the same time, you will receive your relieving letter. If things still do not work out, speak with your immediate manager whom you used to report to and apprise him of the situation or the HR Director of the unfair trade practices. There will be someone willing to help; look for that person. Email me once you are out of this and share your previous employer's response.

Regards,
Kumar Manoj