Stuck in a Job Contract: Can I Legally Move On Without a Relieving Letter?

I have given an undertaking to my present employer to work for 3 years, and I am still on probation (probation period is 2 years). I have completed 1 year and 10 months. I submitted my resignation, but the employer has not accepted it and will not provide me with the relieving letter. Would it be illegal for me to join a new employer if my current employer rejects my resignation? How legally binding is the undertaking I have given?

Hi Pnm,

I have given an undertaking to my present employer to work for 3 years, and I am still on probation (the probation period is 2 years). I have completed 1 year and 10 months. I submitted my resignation, but the employer has not accepted it and will not provide me with the relieving letter. Would it be illegal for me to join a new employer after my current employer rejects my resignation? How legally binding is the undertaking I have given?

Your bond/undertaking aims to secure the employment of the new employee for a minimum period of 3 years. In law, this agreement is void under Section 27 of the Indian Contract Act. You cannot restrain the employee from leaving the job unless the employee was a trainee and the company had spent a large amount of money on their training. Additionally, the agreement cannot be one-sided and only in favor of the company.

Lastly, what are the exit clauses provided? Could you please email or private message me the copy of the agreement before we further comment?

Regards,
Rajat

There was no exit clause at all in my appointment order. The undertaking was: I will not take up any other work without the consent of management. I hereby undertake to serve the organization for the next three years. (My signature)

That's all.

(I have now left that job and taken up another. I also sent a letter saying that I would not be working from such and such a date.)

Now they have sent a registered letter home saying that they have not relieved me and that I must report to duty immediately failing which they may take action.

What action can they take?

Hi Pnm,

Was the undertaking on a stamp paper? I guess not, looking at the nature of the statement. So, don't worry, they can't do much besides sending you such letters. Moreover, as I mentioned earlier, your bond/undertaking tries to secure the employment of the new employee for a minimum period of 3 years. In law, this agreement is void under Section 27 of the Indian Contract Act. You cannot restrain the employee from leaving the job unless the employee was a trainee and the company had spent a large amount of money on his training.

Since there were no training costs involved, nor is there a mention of an exit clause in terms of payment of costs, this is just a one-sided agreement and an infringement on the right to employment. To be on the safer side, speak to company personnel and hint that you would consult a lawyer on harassment. It works. Sorry, I couldn't respond during the day as I don't get the time to check the site.

Regards, Rajat Joshi

Thank you very much. It's really a big worry off my shoulders to have been told about the legalities. My salary has been withheld for the last month. How do I recover it?

Thanks once again,
poornachandra

Hi Rajat,

It's rather unfortunate, and it was expected as that's all they could. What I suggest is that you contact a lawyer to send them a notice on this issue. Also, if you contact the media, it would help. If not, let me give you a suggestion - rather an innovative one - it works! Ask your friend, especially a girl who is confident and smart, to call up the HR department as a reporter and inquire about this issue.

Let me know the results! 😄

Cheers,

Rajat

An employer cannot withhold the salary of an employee for the period he had worked. If, in writing, you had taken up any responsibility or any article of the company, you would be responsible to hand it back. The salary could be recovered by sending a registered letter to the employer asking to clear it. If that does not work, then you can take the legal path.

Kenny