Stuck in a Notice Period Dilemma: Can My Company Refuse My Buyout Offer and Hold My Relieving Letter?

Dear All,

Recently, I received a very good offer, and my new company wants me to join within 30 days. However, as per my offer letter, I need to serve a 60-day notice period in my present company. I am ready to pay the salary in lieu of the notice period shortfall, but my supervisor is not relieving me and wants me to serve the full 60-day notice, or else he will hold my relieving letter.

My offer letter states that “This contract of employment is terminable, without reasons, by either party giving one month's notice during the probationary period and two months' notice on confirmation. The company reserves the right to pay or recover salary in lieu of the notice period. Further, the company may, at its discretion, relieve you from such date as it may deem fit even prior to the expiry of the notice period.”

Please help me to get the answers to the following questions:

Questions Regarding Notice Period and Relieving Letter

Qus1: Can a company legally hold my relieving letter even when I am ready for a notice buyout?

Qus2: Can my present company file a case against my new company if I join them without a relieving letter?

Qus3: What are the chances if I file a court case?

Regards,

1) The company can hold the relieving letter, but there will be no legal status on this.

2) Since the clause does not mention the payment of salary in lieu of notice, the supervisor is right in making you work for 60 days. However, they may not file a case against your new company as it has no stake in your employment with the present company.

3) You do not have a strong case considering the offer letter clause of your present company. However, your lawyer may argue that the employment contract was one-sided.

Kind regards,
Dayanand L Guddin