Employee Resignation: What Are the Rules and Regulations for Releasing Them?

Employee Resignation: Rules and Regulations

An employee resigned from an organization today. What are the rules and regulations for releasing him?

Regards

Formalities to Complete at the Time of Resignation

At the time of resignation, HR needs to complete the following formalities:

1. Resignation Letter
2. Acceptance of Resignation
3. Relieving Letter & Experience Letter
4. Full & Final Settlement
5. Exit Interview

Regards,
Savitha Chowdary
HR Executive

It's a form that the candidate has to fill before leaving the company. In this form, the candidate can state their experience with the company or provide suggestions for the company's improvement.

Dear Friend,

1. First, ask your employee to submit his resignation letter through email. He should cc his reporting head too.

2. The reporting head/TL/PM should approve it.

3. Send him an email (cc his reporting head) stating that the management has accepted his resignation and he would be relieved on XX-XX-2010 (Mention the date and month). The relieving date depends on his notice period (Refer to his appointment letter to know the notice period), and the notice period starts from the day he submitted his resignation. You can even relieve him earlier based on his reporting head's decision.

4. His reporting head should ensure that he has handed over his responsibilities to the concerned person on or before his last working day.

5. On the last working day, the employee should approach HR to get the NOC (No Objection Certificate). The employee should get signatures from his reporting head indicating that he has handed over all his responsibilities, from Accounts confirming he has cleared all loans and advances if taken, from Admin confirming he has handed over all company properties if taken/given, and finally from HR. Before signing the NOC, ensure he hands over his ID card, Medical card (if provided), etc.

6. Issue the relieving and experience letter.

7. Complete the Full and Final settlement.

8. Conduct the Exit interview.

I have attached the template for NOC, Experience letter, Relieving letter, and Exit interview form for your reference.

Dear Experts,

I have been working in a limited company for the last 3 years. I submitted my resignation on 14th Sept 2010, and it was "received and signed dated 15th Sept 2010" by my reporting head. I did not specify a relieving date in my resignation letter. In my current company, my notice period is 3 months, but I would like to be relieved earlier than that.

After resigning, I sent an email to my current company requesting to be relieved by 13th Nov 2010, as I needed to start training at my new company on 15th Nov 2010. Below is the content of the email:

Subject: Relieving from Services on resignation w.e.f 13 Nov. 2010

Dear Sir,

Following my resignation dated 14 Oct. 2010, I request to be relieved on 13th Nov 2010 as I need to start training at the new company on 15th Nov 2010. Please adjust my remaining notice period from my due leaves or provide full and final settlement as per company norms. Kindly inform me if any formalities need to be completed.

Their response to my email was as follows:

"As per the terms of your employment, you are required to serve a three-month notice period which will end on 11th January 2011. Therefore, your relieving date will be no later than 11th January 2011.

Regards,"

As per my agreement with the company:

"Notwithstanding anything to the contrary herein, either party may, during the tenure of your service, terminate the same by giving not less than three months' notice in writing. Additionally, the Company reserves the right to terminate your services at its sole discretion at any time by paying you three months' salary in lieu of notice."

I have managed to secure an extension from my new company to join on or before 29th Nov 2010. If I join on this date, I will serve a 1.5-month notice instead of the full 3 months.

I have informed my seniors about my new joining date and its urgency. However, they insist that I must serve the full 3 months' notice period as they have not found a replacement. They have also threatened to terminate me officially if I join the new company, withhold my relieving letter, experience certificate, and pending dues.

I have accrued 64 days of leave in the company. Can I legally join the new company within my 3-month notice period without facing repercussions? If I join the new company before completing 3 months, can my current company withhold my dues, certificates, etc.? What legal formalities should I consider before joining the new company?

None of my colleagues have had a similar experience in this company.

Your guidance and advice on this matter would be greatly appreciated.

Thank you,

Gaurav"

Hello,

The situation is pretty straightforward and simple, though it does not suit at the moment.

Based on the necessary information provided by you, it is not possible to get relieved before three months unless the employer decides to do so! In this case, the employer has decided against relieving you earlier than the due notice period, and the employer has the arbitrary right to do so. In the contract of employment, you have agreed to this term, and now it is not possible for you to question it.

In a way, you are stuck by the provisions of an agreement that you are a party to, even if the agreement is unfair in your perception now!

Your joining the new job before the expiry of the notice period in the present job is unlikely to work out in your own interests. Kindly note the following:

1. The new employer may ask you to produce a relieving letter from the old employer. Usually, the receiving employers do ask for this! If you are unable to do so, you may not be allowed to join.
2. It is not right to agree to some terms when you want and disown them later.

There is just a possibility that you persuade the present employer to relieve you earlier, in addition to the efforts already made by you, and get relieved early. Make a personal visit (by appointment) and state your case.

Alternatively, request the new employer to not insist upon a relieving letter and join. If they agree, your need is met! They can elect to not insist upon such a letter because they are recruiting you for your competence and not for compliance with this rule! The rule is good, breaking it is bad, yet the companies may choose to make an exception in their enlightened self-interests.

But if you are contemplating proceeding at law, shun the idea. It will be a waste of time and valuable resources and is unlikely to give you any relief.

Trust the perspectives on possibilities are clear.

Regards,
Samvedan
November 24, 2010

Dear Experts,

I am working in a limited company for the last 3 years. I have given my resignation on 14th Sept 2010, and it was "received and signed dated 15th Sept 2010" by my reporting head. I have not mentioned any relieving date required by me in my resignation letter. In my present company, my notice period is 3 months. But I want my relieving earlier than 3 months.

After giving my resignation, I sent an email to my present company asking for relieving by 13th of Nov 2010, which is as follows:

"Subject: Relieving from Services on resignation w.e.f 13 Nov. 2010

Dear Sir,

In continuation of my resignation dated 14 Oct. 2010, I must be relieved on 13th Nov 2010 as I have to proceed on training in the new company with effect from 15th Nov 2010. Please adjust my remaining notice period from my due leaves and/or full and final as per company norms. If the office needs any formality to be completed by me, I may be informed."

To the above email, they replied, which is as under:

"As per the terms of your employment with the Company, you are required to serve a three months' notice, which period will expire on 11th January 2011. As such, you will be relieved latest by 11th January 2011.

Regards,"

My agreement with the company reads as under:

"Notwithstanding anything to the contrary herein, either party may, during the tenure of your service, terminate the same by giving to the other party not less than three months' previous notice of termination in writing.

Further, the Company shall, in addition, have the right to terminate your services at its sole discretion at any time without being required to state its reasons for doing so on payment to you of three months' salary in lieu of notice and proportionate commission when due and payable."

Now, I am able to get an extension from my new company where I have to join on or before 29th Nov 2010. (If I join on this date, I will be serving a 1.5 months' notice instead of 3 months)

I have clearly told my seniors about my joining date and its urgency. But they are saying that you have to serve a 3 months' notice period as we are not able to get a replacement for you. Further, they are verbally saying that if you join the new company, we will terminate you officially, won't give you a relieving letter, and experience letter, and will not give any pending dues, etc.

My due leave in the company is 64 days. Please guide if I can join the new company within my 3 months' notice period without any legal obligations. If I join the new company before 3 months, will my present company hold my dues, relieving certificate, and experience certificates, etc.? What are the legal formalities I need to do before joining the new company???

All my colleagues have been relieved within 1 month till date, so there is no similar case like mine in this company.

Please help and advise.

Thanks a lot.

Gaurav"

Dear Gaurav,

Mr. Samvedan has analyzed your case perfectly and given feasible solutions, including a few words of business wisdom, viz.

- "... and the employer has this arbitrary right to do so";
- "...persuade...Make personal visit/s (by appointment) and state your case";
- "...because they are recruiting you for your competence and not for compliance with this rule! The rule is good, breaking it is bad, yet the companies may choose to make an exception in their enlightened self-interests."

On the other hand, I notice a certain 'factual' discrepancy in your post. Initially, you mention,

"I have given resignation on 14th Sept 2010 and it was "recd. and signed dated 15th Sept 2010" by my reporting head."

Then, in the email you mention:

"In continuation of my resignation dated 14 Oct. 2010, I must be relieved on 13th Nov 2010."

What is the actual date of your resignation?

If it is 14 Sep., then the three months notice period gets over on Dec. 13;

However, if HR is considering the relieving date as 11th January 2011, then it must be according to the date mentioned in your email.

Do get this clarified as you attempt to buy your notice period.

Warm regards.

Dear Gaurav,

I entirely agree with Mr. Samvedan's view. He has analyzed your case word by word and provided you with the most appropriate solution to your problem.

Only one word of caution: Though your current employer may be willing to accept you without a relieving letter, you will also not have an experience certificate from your current employer. This may not be a favorable condition considering your long-term career.

The only option for you is to request/cajole/plead with your prospective employer to extend the date of joining to fulfill your contractual obligation with your current employer. You have to instill confidence in him that you are certainly going to join; he should not have the impression that you are seeking an extension to pursue alternate employments. If this is done, the prospective employer will certainly agree to your request for an extension.

The reason why most employers put pressure on employees to join immediately is to ensure that they join their company without pursuing alternate employments. So it is all about convincing.

Best regards,

M.V. Kannan