How Should My Friend Handle Company Assets When They Won't Issue a Relieving Letter?

Dear Seniors, My friend was a Manager in a multinational company. As per his appointment letter, a 30-day notice period was to be served upon resignation. After 2 years, the new General Manager changed the HR policy to require a 90-day notice period. (Individual confirmation has not been obtained, but the GM wishes to apply this rule to existing employees). Now, he has resigned (due to GM harassment) and instead of serving a 1-month notice, he served a 2-month notice and requested management to settle his dues and issue a relieving letter. However, the GM requested him to assist the new Manager for a few more days, to which he refused. The company did not take back the laptop and mobile, expecting him to return to work for a few more days. My friend asked the company to send someone to collect the laptop and cell phone, but management has not responded.

After 1 month, the company now wants the laptop and mobile back without issuing the relieving letter and settling the final dues. Please advise on how he should react to this situation. Can he keep the company assets and ask for the relieving letter first before returning the assets? What actions should he take?

Thank you.

What my personal opinion is to settle the dues with the company instead of keeping the properties. Because the company may have a legal department and they may go for legal actions against him. It may be a problem for him in the future.

It's my personal opinion only.

Ask your friend whether he has signed any paper stating that he has to serve a 90-day notice. If not, the company has to settle all his dues and issue the relieving letter. It will be best for him to collect the company assets in person and request the issuance of his relieving letter in person.

The issue is that even after the signing of the letters, the company can amend the rules through circulars that are applicable to all employees.

Kindly tell us how many employees are working in your friend's company? We want to know if there are any certified Standing Orders or Model Standing Order rules in place in his company. In every company's standing order, the Exit clause is already mentioned, and the Notice period date is also defined and certified by the Labor office. If any amendments are required by the company's standing order, they have to be updated by the Labor office. Any Internal Circular cannot be applicable without the approval of the Labor department.

Therefore, please advise your friend to return all the company assets as soon as possible and collect the no dues from each department to ensure he does not possess any company assets. Additionally, ask him to send an application to the top management of the company, attaching a photocopy of the appointment letter and the No Due certificate.

If the company still refuses to cooperate, you can file a written complaint against the company at your local labor office.

Regards,
Ratikanta Rath

Thanks, seniors, for the reply. I would like to state that:

1) My friend has not signed any paper giving effect to the change of the notice period from 30 to 90 days.

2) On the last date of his working days, he prepared a list of the things to be handed over, including the laptop he was using. Management was not ready to take back the laptop, but they took back the rest and provided an acknowledgment.

3) My friend wrote an email to the management asking why the laptop was not taken back, despite the fact that he may or may not return.

4) Management replied, stating that his additional service is required after a gap of 15 days because my friend was specialized in the subject, and they felt the newcomer would not be able to execute tasks effectively.

5) As the local management insisted that the relieving letter and final settlement would be given only upon his return, he wrote back saying that he would be out of town for urgent work and might not be able to return before two months. He requested the local management to send someone to collect the laptop from his residence and also requested settlement dues and a relieving letter.

6) Now, the management has stated that he should come to the office to sign a revocation letter of the Specific Power of Attorney given to him as a senior manager. In fact, there was a GPA granted to the GM, who, in turn, delegated some authority to deal with a certain department. My friend's opinion is that the letter of authority given by the GM in his favor takes the nature of a Specific Power of Attorney, which ceases to have effect once the event or purpose for which it was given is completed. Is he right? Secondly, my friend says that to revoke a Power of Attorney, no signature of the agent is required, as the principal has the full right to do so without the agent's signature. Is this correct?

Management has threatened that if he does not come on a particular day, the GM will publish in the newspaper regarding the revocation of the Power of Attorney.

Does this have any implications on his career? As mentioned, there was no GPA; it was only a Specific Letter of Authority. Can we call this a Specific Power of Attorney? Please note that no economic offense is involved in the case. This is just harassment by the local management. Because of the harassment, eight people have left the organization in the last two months.

Kindly advise on the course of action to be taken by him. As some seniors suggested, can he send the laptop and cell phone back to the office and then claim his final dues?

Dear Ratikanta,

There is no standing order in his company. As a new company in India, it has formulated an HR policy recently. Prior to that, management was strictly following the terms and conditions of the appointment letter to cover employee-related issues.

Secondly, he has an acknowledged copy of the assets handed over to the company. In the list, he has mentioned the laptop, which the company has not taken back (as mentioned earlier).

Can He Approach the Labour Office?

Thirdly, he was serving as a Senior Manager. Can he go to the Labour office with such a complaint? Will the Labour Commissioner entertain such a grievance?

He is ready to hand over the assets. As he is out of station, he has requested the local management of the company through email to send someone to collect the laptop. However, management is insisting that he should come in person to hand over the assets. Is it right for a person who left the organization a month ago to be required to do so?

Signature Requirement for Revocation

The management is giving the reason that he should come to the office to sign the revocation papers of the Specific Power of Attorney. Is his signature required for revocation? Does the Specific Power of Attorney not end once the event or purpose is completed?

Even if his signature is required, is it necessary for him to go to the office to sign the paper? If he asks the management to send it through courier or email, is that wrong?

Potential Management Actions

What action can the management take against him if he is unable to go to the office for the next two months?

Please note that he has properly handed over all the documents and assets to the company and received acknowledgment. The company has also confirmed in writing his last working day. He served the company until that date as well.

Please advise.

Regards,
Shradha

Dear Shradha, as you mentioned that he was in the Senior Manager category, the Industrial Dispute Act will not be applicable to him. In that case, he will have to file a complaint in the Civil Court.

You also mentioned, "Please note that he has properly handed over all the documents and assets to the company and received acknowledgment. The company has also confirmed in writing his last working day."

Therefore, advise him to either send a representative on his behalf to return the laptop and obtain an acknowledgment copy from the company. He should gather two pieces of evidence: a copy of the appointment letter and a slip confirming the proper handover of documents and assets, as well as the company's written confirmation of his last working day. He can then proceed to file a case against the company in civil court.

Regards,
Ratikanta Rath

Thank you for the reply. Can you please shed some light on the following as well?

1. My friend has not signed any document effecting the change of the notice period from 30 to 90 days.

2. On his last day of work, he prepared a list of items, including the laptop he was using, to be handed over. The management did not want to take back the laptop but accepted the rest of the items and provided acknowledgment.

3. He sent an email to management questioning why the laptop had not been retrieved, despite the uncertainty of his return.

4. Management responded, stating his specialized services would be needed after a 15-day gap, as the new person might struggle with certain tasks.

5. The local management insisted that the relieving letter and final settlement would only be given upon his return. He informed them of his unavailability for the next two months and requested someone to collect the laptop and settle dues.

6. The management now demands his presence to sign a revocation letter for a specific power of attorney granted to him as a senior manager. He believes the letter of authority from the GM acts as a specific power of attorney, which expires once its purpose is fulfilled. He also argues that the principal can revoke the power without the agent's signature.

The management threatened to publicize the revocation of the power of attorney in the newspaper if he fails to appear on the specified day.

Is there a potential impact on his career? Despite surrendering the laptop and cellphone, if the company refuses to issue a relieving letter, what should he do? Would resorting to the civil court be the final option?

Lastly, can a GPA holder grant another GPA under the Indian Contract Act?

Thank you for your assistance.

Regards,
Shradha

Even if your friend goes through any legal formalities, it will harass both parties. Therefore, advise your friend to sit together with their MD or a higher authority in management to sort out the issue. Since your friend holds a senior position with an important role, a solution will definitely be found. A mutual discussion can resolve all the disputes, which I believe is the best approach.

Regards,
Ratikanta Rath

If he is not interested in going to that office because he feels it's not beneficial, what is the solution?

The management is unnecessarily citing the requirement for the agent's signature on the revocation of the Power of Attorney (PA). However, my friend argues that according to the Indian Contract Act, Trust Act, and Evidence Act, it is not necessary to obtain the agent's signature on the Specific Power of Attorney. Is my friend correct?

Currently, the management has agreed to send the necessary papers by courier for his signature. Simultaneously, they have requested him to return the laptop via email, without mentioning anything about his Full and Final settlement or his relieving letter. In fact, the value of the assets my friend possesses exceeds that of the laptop and cell phone.

As previously mentioned, my friend has never declined to return the company's assets. Instead, it is the General Manager (GM) who refused to accept the laptop and cell phone on my friend's last working day. However, given the GM's behavior, my friend suspects that the company may delay providing his Full and Final settlement for an extended period, as has happened with many former employees.

In this situation, what should he do?

Regards,
Shradha