Can My Former Employer Take Legal Action After I Accepted a New Job Offer?

Dear Seniors,

I am working under a CA and posted in Noida as an outsourced consultant. For the last two years, I have been working in this company. We have a contract between the CA and NAPL. I am treated like a full-time employee but receive my salary from my CA. Now, the company wants me to be on their payroll, and I have accepted the offer. I have given my resignation to my CA, and though he verbally agreed and said there's no problem, he is not accepting my resignation. I joined the company on 7-10-13 without being relieved by the CA or having my resignation letter accepted. The GM of the company and my CA have mutually discussed this issue.

Now, please advise me on any legal action that the CA can take. Can he sue the company in court? Also, please advise me on any legal action that my CA can take.

Regards,
Astam Hazra

As I can gather from the entire write-up, there are two issues:

1. Legal action from CA.
2. Relieving letter.

For legal action, based on my understanding, there was a mutual understanding between the organization and CA Farm, so I don't think that CA will take any legal action against you. I am a bit confused as to why CA is not accepting the written resignation letter if they had verbally agreed and mutually discussed with NAPL.

In this situation, there is not much to do, but you can send an email of your resignation which should include the following points:

- Date of your actual resignation.
- Details of the verbal discussion.
- Reference to the discussion with the date between CA and NAPL.
- Any other points discussed.

This email will be helpful if any legal actions are taken by CA.

Regarding the relieving letter, since there was a mutual understanding between CA and NAPL, they might not ask you for the relieving letter. However, if you plan to join another organization in the future, they will likely require it. At that point, you can use this email to explain the entire situation.

I hope this addresses your concerns.

Thank you very much, Nipuna. I have already discussed with the GM and informed him of everything I discussed with my CA. However, it is not in writing, so I am writing to the company as you advised.

Regards,
Astam

You may add one more line: if no response is received from you within seven days from today, I will presume that you have accepted my resignation, and I am relieved from my services with you at the close of business hours on ……….

Ensuring Compliance with Employment Terms

As an outsourced staff member, ensure your company's Service Level Agreement (SLA) allows you to join this client. Ensure you comply with your employment terms, and if your resignation is not accepted in writing afterward, take legal action against your employer to ensure that your resignation and joining the new company are legal.

Regards,
Dayo

Please clarify whether you have received any appointment letter from the CA firm. If yes, what are the termination clauses mentioned to guide you? Most CAs do not provide appointment/employment agreements. In that case, the CA cannot harm you.

Regards,
Astam Hazra

This entire thing is what we call a storm in a teacup. It's a waste of time (yours, in thinking about it and being stressed).

1. No employer can force an employee to work when they do not want to. The law forbids it. At most, you need to serve a notice period. If no appointment letter is given or nothing specified, you need to serve a one-month notice pay.

2. As long as you have resigned and have served the notice period, you are free to join any company irrespective of whether the resignation has been accepted.

3. Your employer cannot impose any restriction on your future employment, whether you join a client or a competitor. No agreement or bond signed to that effect has any validity.

4. As long as you have an appointment letter from the new company clearly stating they are appointing you, you need not worry.

5. Do you think the CA has nothing better to do than sue you in a court of law? They have better things to do in life. Don't worry.

However, it's always better to have a record of the fact that you have resigned.

Best you follow the procedure Nipuna suggested.