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

Dear All,

Recently I got very good offer and my new company wants me to join within in 30 days. However, as per my offer letter I need to serve 60 days notice in my present company.

I am ready to pay salary in lieu of notice period shortfall still my supervisor is not reliving and want me to server full 60 days notice else he will hold my reliving letter.

My offer letter states that “This contract of employment is terminable, without reasons, by either party giving one month notice during probationary period and two months notice on confirmation. Company reserves the right to pay or recover salary in lieu of 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 of the following questions...

Qus1: Can a company legally hold my reliving letter even when I am ready for notice buyout?
Qus2: Can my present company file case against my new company if I join them without relieving letter.
Qus3: What are the chances if I file a court case?

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