Facing a Tough Notice Period: Can My Employer Deny My Release Letter and Impact My Future Job?

Hi everyone, I have been working in an investor communication firm for the past 2 and a half years. I resigned a couple of weeks ago and, due to certain reasons, find it extremely difficult to serve my notice period. My contract states that I must either serve a one-month notice period or pay one month's salary. I am willing to pay the money to get an early release. However, my employer said he won't give me any documents if I don't work until the end of my notice period. Can the employer withhold my release letter?

Impact on Future Employment

P.S. In consideration of the worst-case scenario, please inform me how significantly this situation may impact my next employment. I have my appointment letter, appraisal letter (from April 2013), and salary slips to demonstrate my tenure here.

Hi Tanya,

[QUOTE=tanyaa;2058257]Hi everyone,

I have been working in an investor communication firm for the last 2 and a half years. I resigned a couple of weeks ago and, due to certain reasons, I find it extremely difficult to serve my notice period.

Resignation Details

Can you clarify the reason you mentioned for your resignation? Did you request consideration for a shorter notice period? Has your employer accepted your resignation? What was the date of your resignation? How many days have you served, or what was your last working day?

My contract states that I must serve a one-month notice period or pay one month's salary. I am willing to pay the money to obtain an early release. Please note that even though such a clause is included in the agreement, if you are leaving in the middle of a project that may impact the employer, they may require you to serve the notice period to ensure a proper handover to the replacement they are seeking. It varies depending on the position and role's importance.

For example, I have a similar clause in my appointment letter. However, if I were to resign today, being the only HR in the firm, I would need to find a replacement, train them on the roles, and ensure a smooth handover. I understand that this may take longer than a month, as it is part of my role. Each case is different, and we can discuss your specific situation further. I have outlined below what can be done.

However, my employer stated that he won’t provide me with any documents if I don’t work until the end of my notice period. I hope by documents you mean only the relieving and experience letters, and you have not submitted any original documents to the company. I ask because many companies request original documents to limit your options and force you to accept their conditions.

Employer's Right to Withhold Documents

Please let me know if the employer can withhold my release letter? In this scenario, as you mentioned, the appointment letter states one month's notice or salary in lieu of it. However, it should be a mutual agreement on the notice buyout option. If the employer is unwilling to agree, they may withhold the release letter. Nevertheless, formally submit your resignation and request to settle the Full and Final settlement by considering the notice buyout option as stated in the appointment letter. Also, request the issuance of the relieving and experience letters promptly.

Potential Impact on Future Employment

P.S. Considering the worst situation, please inform me about how severely this might impact my next employment. I have my appointment letter, appraisal letter (from April 2013), and salary slips to verify my tenure here.

Worst-case scenario - If you do not serve the notice and they do not agree to the buyout option, resulting in you not receiving the relieving letter? They may list you as absconded. Whether they choose to disclose this depends on the nature of the work and the industry. Many companies require a proper relieving letter to proceed. Since you will be using the appointment letter and salary slips, you will need to mention this employment. During background verification, they may contact this employer, potentially resulting in a negative mark. Even if they do not embellish the story, the fact that you did not serve proper notice and were not properly relieved cannot be altered.

I hope this information is helpful.

Regards

Further to the detailed inputs mentioned by Ankita Shah, could you please pick out from your Appointment Letter the relevant clause about the notice period—VERBATIM? Invariably, most, if not all, companies mention a line after what you mentioned: "at the discretion of the management" or similar such wording—essentially with this meaning.

So, you can't use just one part of the line that's in your favor and leave the rest that's inconvenient. Irrespective of what the "certain reasons" from your end for not serving the notice period may be, you should have factored in this aspect when you resigned. At least, you should have checked out discretely the possible scenarios if you don't serve the notice period—which would have preempted this awkward situation.

As far as using your Appointment and Appraisal Letters, Salary Slips to prove your tenure in this company, in addition to the points mentioned by Ankita Shah, please understand that companies have different ways of discriminating between genuine cases where the HR is harassing the employee by refusing to issue the documents and cases where the employee is taking this scenario as a ruse to get away from his/her primary responsibility of honoring his/her commitment to the job—that of proper and complete knowledge transfer.

All the best.

Regards,
TS

I would suggest you go through the terms & conditions of your appointment letter. If it specifically states that you have to serve a notice period or make a payment in lieu of that, then it is at the discretion of the employer or employee to decide whether to serve the notice period or make the payment.

Therefore, it is incorrect for the employer to withhold the release letter. You can always refer to this situation with your next employer and substantiate your employment with the company using the documents you mentioned, such as salary slips.

I have a slightly different opinion from other friends who have provided their valuable comments and suggestions on this matter. Simply not accepting a resignation cannot compel an employee to work for the company against their will, especially when specific conditions regarding the notice period/pay are stated in the appointment letter.

I would like to present it in another way. If an employer does not want a person in the system for any reason, is it mandatory for them to allow the person to serve the notice period when the appointment letter provides the option to choose between notice pay or serving the notice period?

Please note that the appointment letter is meant to be a contractual document between the employer and employee, and the specified conditions hold significance.

In light of this, I would urge you to inform your next employer appropriately and be truthful. If they value your skills, they should understand your situation.

Kind regards,
Regards

Legally, no specific performance can be enforced in a contract of employment. This means the employer cannot insist on physical presence or work from the employee if the employee has offered to pay in lieu of a shortfall in notice pay. Therefore, an employer not providing a clean release on this ground isn't tenable. (Google the Specific Relief Act and Specific Performance of Contract for more information if you like).

By the way, each employee is entitled to a service certificate. Model Standing Orders under the Industrial Employment (Standing Orders) Act also provide for this.

However, a legal remedy is never quick. It is ideal if you can discuss and try to find some mid-way solution amicably. Hopefully, knowing that you are on a legally sound wicket, you can devise a strategy to seek a favorable outcome 

Cheers

Thank you all for your valuable suggestions. Well, since most of you needed some clarification regarding the 'certain reasons' for my resignation and unwillingness to serve the notice period, I would like to elaborate on my present work situation.

Current Work Situation

I work for a small organization that does not even have an HR department. There are a number of areas related to employee benefits and other regulations where there are no proper written guidelines, and those things precisely depend on the mood of my employer. Different treatment for different employees in the same situation is not uncommon. However, as I was on good terms with my employer (and also due to my ignorance related to HR issues, as it is my first job) and I kind of liked my job, I had never discussed these with him.

In the last few months, I suffered from poor health conditions and also felt mentally exhausted and less productive due to long work hours (on average it's 12-14 hours a day). I tried to communicate in vain. So I resigned. My boss just verbally accepted that and did not communicate anything regarding the exit procedure. After that, I am burdened with too much work and being taunted on every single issue. He also accused me of hiding things during the appraisal, though in reality, I started mentioning my health conditions and mental exhaustion from February. Extreme stress from the situation was my reason for a shortened notice period. I did not refuse a proper handover as well. However, there was no written communication with my boss about the short notice period.

Concerns About Release and Handover

In the last few days, it was communicated by my seniors that he would not provide any release letter and make life hell for that person (another colleague of mine has also resigned). They also told me how he made ex-employees suffer for the balance salary and release letter and did not provide anything at all to a few who served even for more than two years. I have worked here for 2 years and 10 months precisely and can't take a chance with something that may jeopardize my career. Now I have no other option other than serving my notice period.

However, new projects are still being allotted to me, and there is no communication regarding the project handover, despite asking about it in writing. Ankita and Govind, you guys mentioned the handover of the project which may suffer in the respective employees' absence. Our company is highly understaffed, and I have got no clue if my employer is looking for my replacement. Our projects usually take 1.5 - 2 months to be completed. Can my employer, under any circumstance, force me to complete the new projects? Also, I'm worried that even if I successfully manage to serve my notice period (I know it might sound immature, but I have my limitations to accept things I don't deserve), my employer will delay (or worse, refuse) my salary and release letter. Please suggest how I can handle this. I'm so much under pressure at the moment.

My appointment letter is currently at my home in Kolkata. I will post the exact clause of the notice period shortly. And thankfully, I have all my academic records with me.

Thank you all once again for your time and consideration.

Best wishes,

Tania

I understand your situation very well. While I was working in my previous job, the situation was quite similar. I was looking for a generalist role and had mentioned the same to my ex-employer during the interview. However, due to a market crunch, I decided to take up a recruiter's position at a consultancy until something better came along.

Later, I discovered that my employer was not willing to provide me with a proper relieving letter. To navigate this situation, I had to take some strategic steps. I learned that after my resignation, several other employees also resigned, and the employer blamed me for influencing them to leave.

This is a common scenario in small and medium-sized businesses that lack empathy for their employees.

Suggestions for Handling Employer Reluctance

If you are feeling stressed and experiencing health issues, you may have a medical certificate from your family doctor. Attach this certificate to your resignation letter, specify your last working date, and express your willingness to facilitate a smooth handover during your notice period.

State in the letter that according to general service rules, significant changes to job roles for resigning employees are not permitted. Emphasize that you are entitled to a relieving letter and an experience certificate upon completing the exit formalities.

Inform them that if they refuse to provide these documents, you may need to take further action and seek legal assistance to obtain the necessary experience and relieving letters for the work you have performed.

Wishing you all the best.

Service Agreement and Revised Company Policy

I had signed a service agreement for 2 years that stated if I were to leave the company before completing the 2 years, I would have to pay 50k and serve a 30-day notice period. However, the service agreement does not mention what would happen if the company policy is revised. The appointment letter states that in case of changes in company policy, new policies would be applicable.

Now, the company policy has been revised to include a 90-day notice period, for which the company has not obtained agreement but simply issued a notice. The company is now asking me to serve a 90-day notice period and pay 50k without providing any supporting documents for their demand.

I am wondering if it is worthwhile to pursue a legal case. If so, under what section of the IPC should I proceed?

Employee Bond and Notice Period in India

Agreement or bond to retain an employee is illegal in India. It simply amounts to bonded labor. Through a bond or agreement, a company can at most recover the cost of any training, if provided to the employee, and nothing else. However, for that, the company has to follow a long procedure of litigation to recover the same. You are not required to pay 50K even if you leave.

Notice Period and Resignation Process

Regarding the notice period, since your initial appointment letter had a 30-day notice period, it will remain in force. The company cannot change any clause of the appointment letter once it is issued unless a notice of change under section 9 of the Industrial Dispute Act is given, and both parties have to agree to such changes in conditions. It cannot be one-sided.

If you want to resign, simply give a resignation letter citing the 30-day notice period clause which you are willing to serve. Keep an acknowledgment copy of such a resignation letter, which is important. If the company refuses to accept the resignation letter, then send it through registered post and keep the receipt and track report with you. Thereafter, depending on the next course of action by the company, more advice can be given. However, this kind of activity does not attract the provisions of IPC.

Check my blog at www.labourlawhub.com.

Regards

Service Agreement vs. Company Policy

In the appointment letter, the company has stated that your appointment will be governed by the rules and regulations of the company, which are liable to change. In the service agreement, nothing of such sort is written. Does this mean that while I am under the service agreement, the provisions of the service agreement shall prevail unless another such agreement is made?

The service agreement states a 30-day notice period and 50k liquidated damages and mentions nowhere what happens if the company policy gets revised. The company policy has been revised to a 90-day notice period, which I am serving. Still, they are asking for 50k and not giving me in writing where it is mentioned to serve 90 days and pay 50k. Verbally, they have said they'll not process the full and final settlement and issue a service certificate unless I pay 50k. They are not even sharing a copy of the service agreement I signed and are saying they'll take legal action if I don't pay.

Can the Company Withhold My Service Certificate?

Can the company withhold my service certificate in such cases? I am supposed to join a government job where I would need to produce a service certificate.

Legal Implications of Verbal Communication

Please note that verbal communication does not have any legal value, and a company cannot change or introduce terms and conditions that violate the laws of the land. The terms and conditions of your company do not matter when there is settled law. Surely, your company is trying to take you for a ride by illegally enhancing the notice period as well as asking you to pay 50K without giving anything in writing so that you cannot charge them later. Legally, the company cannot withhold any certificate.

Now you have to act smart and decide the next course of action.

Check out my blog at www.labourlawhub.com.