Is It Legal for My Company to Withhold Appointment Letters and Original Documents?

Hello, I have joined a company, and even after 4 months, no appointment letter has been given. I have asked other employees, and it's the same with others as well; some have completed 2 years and still have no letter. It's the boss's decision whom to give and whom not to; mostly, like 90%, have no appointment letter. Initially, only offer letters are given. Also, they keep original mark sheets and don't return them until you leave the company. Both of these practices sound illegal, but I have no idea about the company's HR laws and whom to complain to. In the company, the HR members say they can't do anything, and no one else takes responsibility. Other staff members do not complain for fear of being given a memo or losing their job. How can this be dealt with? Please guide.

Understanding Employment Contracts and Legal Implications

These issues occur only under unprofessional management. Many employers believe that by not providing appointment orders, they are on the safe side, thinking employees cannot claim permanency or other rights under labor laws. In fact, a contract of employment need not necessarily be in writing; an oral agreement will suffice. The crucial point is that in court, it is the employee who must prove that they have been employed by the company. To prove this, they should have relevant pages of the attendance register, wages register, or other documents like work instructions, approvals, etc., with their signature. For coverage of ESI or PF, authorities will not request appointment orders; they are concerned only with Muster Rolls and Wages Register. Similarly, having your name entered in the Attendance Register and Wages Register serves as proof of employment. Even an appointment order can be challenged in court because it is not proof of having been employed.

Standing Orders and Legal Compliance

In an establishment with certified Standing Orders, there should naturally be a clause included in the standing orders outlining how appointment orders will be issued. Therefore, in such organizations, if an employee does not receive an appointment order before or upon joining, the matter can be considered a violation of the process. However, in a small establishment or in organizations not covered by the Industrial Employment Standing Orders Act, if you do not have written procedures or an HR Manual, you are exempt from these formalities and cannot demand as you wish.

The Importance of Appointment Orders

Despite all the above, I must emphasize that by issuing an appointment order, the employer establishes a legal relationship with the employee. Moreover, it signifies that the employer follows a procedure. Therefore, if the employer in question is a sole proprietor, by working for them, you may be wasting your time and career. It is advisable to seek alternative employment promptly as this individual may cause issues for you and others employed there.

Regards,
Madhu.T.K

Insightful Quote from Madhu T.K.

A nice saying by Madhu T.K.: "It is not only a one-man show; it also shows the non-compliance of basic human capabilities. Let us not talk about law and other factors. Better to get rid of such a company and believe in yourself for a better job."

Thank you.

Thank you for the reply. It's not a small company. More than 1,000 employees work here, and they have a pan-India presence. They are also visible on TV and sponsor international cricketing events.

I would like to know if, according to any labor law, it is mandatory for a company to issue an appointment letter. Or does it solely depend on the management/owner? If the owner chooses not to issue it, is that acceptable, and do I have no recourse to complain anywhere? Please guide.

Thank you.

HR Policy and Legal Compliance in Large Establishments

It is surprising that an establishment employing 1,000 employees does not have a proper HR policy, including basic things. As already mentioned, please check if your establishment is covered by the Standing Orders Act. Although the Industrial Establishments Standing Orders Act was primarily intended for factories, many states have extended its application to commercial establishments. I am unsure about the status in your state. If covered, naturally, the establishment should have standing orders, which are a legal requirement. Under the Standing Orders, it is necessary for the establishment to provide information about appointments, and they cannot claim that appointments are simply on mutual terms without any formal letters.

If the company is ISO certified, the system will be in place, and external auditors would be interested in finding the appointment orders in the personal files of each employee.

Regards,
Madhu.T.K

Oh, I will do it. Will complaining anonymously to the Ministry of Labor help?

The Importance of Providing Appointment Letters

The issue of not providing the appointment letter is critical, and other statutory provisions should be observed when employing people. When a basic thing is missing in a company, it is quite natural that other provisions are also lacking. This can be dangerous for employees as well. It is crucial to bring this to light at an early stage to safeguard public life.

Regards

Mr. Madhu has dealt with it in detail and correctly too. Contrary to perceptions, not issuing an appointment letter is a risk on the part of the employer. Please carefully keep records as proof of working in those places. I have worked in such situations. Some people are very good. Use such situations for learning and experience. In a country like India, not all of us can get into established organizations. Please mind your development.

Regards,
R N Iyer

Where and in which statute is it mentioned that an appointment order is a must? It is only a standard for ISO.

Benefits of Having an Appointment Order

What exactly are the benefits of having an appointment order? In my opinion, nothing. At the time of disputes or incidents, it may serve as instant proof that you have worked in that establishment, which may help in determining the applicability of welfare statutes. Many aspects need to be proven for this. Once the remuneration is in a continuous process, it is self-explanatory for your employment. Merely not issuing an appointment order is not a punishable crime by the employer. The Labor Department cannot make it mandatory, and Indian courts do not interfere in such matters. I request members to provide a precedent in this regard.

The PF Department has made it mandatory to mention the PF Number on the Identity Card issued by the employer but has not made it mandatory to issue an Identity Card. This statement may offend members of Cite HR, but any counterarguments will help clarify my doubts. All statutes are silent on the issue of appointment orders in the private sector.

Regards,
HRKPATI
Sr. Manager (HR & Legal)

In the Contract Labour Act of Andhra Pradesh, Form 14 is prescribed for the engagement of labor by the contractor. Similar to other forms such as the muster roll and wage sheet, it is the responsibility of the employer to issue an appointment letter, which is a binding factor for employment.

Regards.