Can My Previous Company Legally Hold My Settlement for Not Completing Notice Period?

Hi, I was working with a leading pharmaceutical company for about one year. As I got a new opportunity, I left the job 6 days prior to my notice period because my new company demanded me to join early. As per the company rule, the notice period was one month, but since I left 6 days prior without completing the notice period, I didn't get my relieving letter. Now, that company is not ready to give my settlement, which includes LTA, Medical, Bonus, and PF, until I provide the relieving letter, which I don't have. However, my resignation letter was accepted. Also, in the appointment letter, it is mentioned that after resignation, either a one-month notice period has to be given, or I have to pay the salary of one month in lieu of the notice period.

Can my previous company hold my settlement? Or is there any other legal procedure through which I can get my settlement?

Regards, Smeeta

Hi Smeeta, leaving before the completion of the notice period is a move that the company can use against you to hold your final dues. However, if you had any leaves on hand, you can have the same settled against those six days.

As for the relieving letter and final dues, the company cannot hold it. At most, the company can require you to reimburse it for the six days that you did not work during your notice period.

There are legal provisions in place whereby you can get the company to clear your settlement. But these are a long-drawn and expensive option and should be used only as a last resort. It is better if you can approach the HR of your previous company or the main boss and try to find a mutually agreeable way out of this mess.

Regards,
Gaurang