Can My Friend's Employer Legally Threaten Him for Leaving During Probation Without Notice?

Dear All,

This is the current issue going on with my friend. He is employed in a consultancy on a probation period for 5 months. Now, he has received an opportunity in another company requiring immediate joining, which he wishes to pursue. Consequently, he submitted his resignation letter two days ago. However, the employer is unwilling to release him, stating that he will not receive his current month's salary or a relieving letter if he quits. There is no mention of a notice period in his offer letter. Additionally, the employer has threatened to file a case against him if he leaves the job.

Employer's Rights and Legal Actions

My question is, does the employer have the right to make such statements and file a case against him? My friend is facing significant trouble as this is his first job, and he does not want to encounter these issues.

Thanks & Regards,
Akshay Divekar

If there are no specific exit clauses (such as a notice period during or after probation, compensation in lieu of the shortfall, etc.) mentioned in the appointment letter, and your friend's new employer does not require a relieving letter, and your friend can afford to lose a month's salary, and your friend can inform his new employer promptly in case of any background check, then ask him to leave and join the new company. I do not think that the current employer will file a case, and even if they do, it won't benefit them.

Regards,
Suresh

Please click on the links in the sidebar on the right. Such questions have been answered before.

Legal Action and Company Policies

Anyone can sue anyone. However, the question is, does such an action benefit the company or will they succeed? If I am correct, such actions usually do not succeed. It's a kind of bullying by the company.

Standard Notice Period and Legal Implications

Where nothing is stated in the appointment letter, a one-month notice period is standard. This is provided for in most of the Shop & Establishment Acts.

If the new company is willing to accept him without the relieving letter, then he is free to go ahead. The salary he has to forgo as there is no way he is getting that from the current employer. However, it must be remembered, in the future, if he is joining a large company, they can ask for relieving letters of earlier employers and may also conduct background verification. That may be a problem. It's best to leave after completing the notice period. The employer can sue; he has a right since it's a breach of the contract. It's expensive to do so and a complete waste of time. However, if he does sue, your friend will find it very costly as he has to pay for lawyer fees and take holidays from the office to attend the case for as long as it drags on. Whether he will or not do it depends on various factors which your friend will know better.