Facing Delays in Getting My Relieving Letter and Final Settlement – What Should I Do Next?

I recently completed my services with a software consultancy. It is a startup company under the control of a single director. I have served my notice period legally and was relieved on the agreed-upon date between the employer (consultancy) and me. Even the last-day formalities, like clearance from the client, were provided to the employer as per instructions. On my last day, I was assured that they would send me the service letter and credit the final settlement.

For the past 10 days, I have been following up with over 10 emails without any replies. This morning, I received a response saying they are unable to finalize my relieving process as my signed appointment letter was missing. They insist that I sign a new appointment letter dated 19th July 2012 with a fresh set of policies to receive my full and final settlement/relieving letter. According to the new appointment letter, I am concerned that my full and final settlement will be nullified, which amounts to around 1.5 lakhs.

I declined to sign the new appointment letter as it would not be legally correct since I have already completed my service there. I have evidence such as the employer agreement regarding my last date and the client clearance form.

How to Proceed for Relieving Letter and Settlement

How should I proceed to obtain my relieving letter and full and final settlement? A friend suggested that I should approach a labor welfare officer. Please advise.

Regards,
Vignesh

I would like to interpret the whole story like this. You have completed your relieving formalities, but at the time of preparing your F&F, the HR found that you had not signed the appointment letter when you joined, perhaps due to oversight. Now, in order to make the file complete, your signature on your original appointment order as acceptance of the terms and conditions of service is required. The Company's HR has asked you to sign one backdated.

If the above is the scenario, then it may be taken as a very genuine request from the HR who had failed to collect your signature on the appointment order when you joined the company. You can now do that and help the HR and take the F&F.

On the other hand, if the HR or the company is issuing a fresh appointment order with new service conditions attached, then it should not be allowed. You can approach the Labour Department treating this as an industrial dispute and can claim the settlement under relevant provisions of the Industrial Disputes Act. But before that, please talk to the concerned person at the company and get a clear picture.

Regards,
Madhu.T.K