Is It Legal for My Startup to Reclaim My Appointment Letter? Seeking HR Advice

Hi Seniors, Greetings. I am working in a new startup BPO company as an HR. I received my Appointment Letter when I joined, which was approximately 1.6 months ago from the directors of the company. Now, suddenly, they are asking me to return all the Appointment Letter documents. They are saying they will create a new format for this and for every employee (only I received the Appointment Letter, other employees have not received theirs yet). It's just a startup company, only 1-2 months old. So far, there are no policies in place. Can you guide me on whether it is legal for them to ask me for the same? Please advise me on this matter. Thanks in advance. Regards

There might be a reason why your management hasn't found the format of the appointment letter. They may wish to change the clauses. It has only been a month for you, and you are not yet confirmed in the organization. Therefore, there would be no point in arguing about it. The best course of action would be to take a photocopy of your current appointment letter for future reference and then return the original to them.

Regards,
Ashutosh

You need to discuss this with top management and convince them that clear policies and procedures are very important for any organization and for organizational growth. It is mandatory for organizations to issue the appointment letter as proof of employment. Your management may not be interested in issuing the appointment letter as they may think that by not providing these documents, they can avoid their responsibilities as an employer.

However, at the same time, they should be aware that employees may misuse this gap and join a competitor or disclose processes to the competitor to earn money, and the employer cannot take any action against such fraudulent employees as they lack any legal documentation.

So, this is a small issue that I have mentioned if you are not issuing an appointment letter. Similarly, there are many other points that you can raise to make them understand that these are mandatory requirements for an organization to maintain.

Concerns About Working Without an Appointment Letter

Getting to work without an appointment letter isn't correct, and it's a little surprising how people have trusted such individuals and accepted jobs without the first and most important thing, the "appointment letter," which is crucial because it signifies a commitment to engagement that any company makes with its employees.

The only people I know who come to work without an appointment letter are the "watchmen," "maids/servants," "ayahs," "cooks," "drivers," "gardeners," etc. They work due to tradition, faith, and trust.

Having said this, I must quickly add that the scene is rapidly changing in India. There are several "Corporate Services" companies undertaking the supply of this type of manpower, offering salary, ESI, pick-up-drop, specified working hours, and union membership to prevent exploitation.

On one side, I smell a rat from what I gather in this query. On the other hand, this company may have been started by first-timers who may think like small, petty traders. It could be a pity that you may lack the experience to champion the cause for the employees and are compelled to comply with what the bosses want. Therefore, the main issue again is that policies can be established if the leadership desires and follows through; otherwise, they will remain mere documents left to gather dust.

Recasting and Reissuing Appointment Letters

Now, onto the main issue of recasting and reissuing a new appointment letter after returning the old one. If the management's intentions are sincere, they can issue a new appointment letter for you all to accept, provided the main terms and conditions remain unchanged, and then retrieve the earlier issued appointment letter.

Best wishes

Warm regards,
TSK. Raman

What Mr. TSK Raman has suggested is the right way. Get the new appointment letter in your hand, and then return the earlier one. If the company insists, make a copy, and then return the original.

I am not able to understand your joining this company 1.6 months before. What is this 1.6?

Whether it is 1 year 6 months, or 1 month and a few days, by this time you must have become well aware of the management's attitude/behavior and can decide if people are trustworthy or not.

I have experience in the HR field. I joined this new company just last September 2013. I already returned my appointment letter to them. I took both a Xerox copy and a scanned copy. However, they informed me that they will provide a new appointment letter after completing PF and ESI registration. Until then, no appointment letters have been issued to anyone. I joined here as an HR, but I am also at an entry-level position despite having 3 years of experience. Therefore, I am not very familiar with everything and find it challenging to communicate effectively.

I am feeling quite confused about all these procedures. My probation period is 3 months. In case of any unforeseen circumstances, would it be acceptable to present my scanned copy of the appointment letter to another company? Is this a viable option?

Please guide me. Thank you in advance.

Regards,
Sangeeta

Dear Abhay Sir,

I am experienced in the HR field. I joined this new company in September 2013. I have already returned my appointment letter to them but took a Xerox copy as well as a scanned copy. They informed me that they will provide a new appointment letter after completing PF and ESI registration. Until then, no appointment letter will be issued to anyone. I joined here as an HR, but I am also at an entry-level despite having 3 years of experience. Consequently, I am not well-versed in everything and am unable to communicate everything effectively.

I am really a bit confused with everything. My probation period is 3 months. So, in between, if something happens, can I present my scanned copy of the appointment letter to another company? Is this possible? Please guide me. Thanks in advance.

Regards,
Sangeeta

No Need to Return Old Appointment Letters

There is really no need for the company to take back the old appointment letters. Legally, it does not serve any purpose. The employees may have a copy, and the communication asking to return the original (if through email or memo) itself amounts to the fact that an earlier contract existed.

If the company had good intentions, they would have issued a new letter, superseding the old. The only requirement is that no condition in the new should be less advantageous than the original.

Hope this clarifies.

I totally agree with Mr. Raman's opinion. Return of appointment order is simply unheard of and not done. Moreover, if the intention of the company were genuine, they could have drafted a new/revised appointment order and, while giving it to the employees, asked them to return the old ones. It is quite possible that the new start-up is constrained to shut down, and they are trying to reduce their liabilities of employees' dues, hence this subterfuge.

Warm regards.

There is really no need to split hairs on this. The company or whoever issued that letter probably discovered a mistake on it and wishes to reverse it. Typically, it will have the standard clause that "either party can terminate the engagement." You are under probation; hence, you would not lose anything by giving out the letter. The best bet is to make a copy for yourself to reference in another job and nothing more. You cannot sue if they decide not to give you another letter; just move on!