Stuck in Contract Limbo: How Can I Ensure a Smooth Exit Without Hurting My Career?

Currently, I am working as a contract employee in an MNC on the payroll of a third party. I have received a new offer from another company and have initiated my resignation. However, my manager is currently unwilling to release me. He informed my third-party employer that they will release me with a one-month notice period, as stated in my offer letter. Additionally, the company has decided not to accept any more candidates from our firm.

Shortly after this, I received a call from my third-party employer. They warned me that not leaving in a proper manner could negatively impact my career and future background checks. I spoke with a friend who had also resigned during his contract period, and he faced a similar situation. Despite completing his notice period, he did not receive any relieving documents. The company claimed they had not acknowledged his resignation, declaring him absconded and ineligible to request any documents.

At present, I only have the Offer Letter and bank statements as proof of my association with the company. I have not been provided with payslips or an appraisal letter. Please advise me on how to proceed in this situation.

Understanding Employment Scenarios and Their Implications

There are different angles to this story. One person joins and, after a few months, leaves the company. This is ridiculous and costly for the company. The second scenario is when someone joins and works for the company but is on the rolls of a third party. When he gets a good opportunity, the principal employer does not relieve him or warns the contractor of serious consequences, such as business loss, if he is relieved. This is also ridiculous and an act that an HR person should not engage in, as it plays with the career of a person who is treated like a slave by not absorbing him under the rolls of the principal employer and by violating labor laws in force.

There is yet another story where the employee has been offered employment by a company that is ready to accept the situation of the previous (principal) employer and knows that being outsourced, the new employee will not be able to produce a relieving letter either from the company or from the contractor.

Advice for Different Scenarios

If case 1 is the situation, then I don't have any advice to give you. You should compensate for the loss caused to the company.

If case 2 is the scenario, then you can leave the company since you don't have any legal relationship with the company. Here, you should take your contractor into confidence, and if he is not ready to relieve you, take a stand that the law will take its role by addressing the matter before the Labor Department. Nowadays, it is common to engage contract employees in core activities of a perennial nature even though the law does not permit it. Take advantage of it and warn the contractor.

If case 3 is the situation, leave the company and join the new company by showing whatever documents are available and forget about the calls from the contractor. If the company HR calls, just tell (rather educate) them that they have nothing to do with you since there exists no employee-employer relationship between them and you.

Regards,
Madhu.T.K

Thank you for your time. I have been working for this company for the past 1.5 years, and 2 months ago, they moved me to another project. Currently, I am working on a new project. Please let me know if this circumstance matches case 1. Additionally, I have spoken with my new employer, and they are not willing to take me on without any documents. Please advise me on what to do in this situation.

It also seems that you have been engaged in work of a regular/perennial nature, which is again illegal as per the law. In that case, you may need to take it up as Case 2 and challenge it. You can inform your employer, the contractor, that if you are not relieved with proper documents, you will escalate it as an industrial dispute by lodging a complaint with the labor officials. The contractor would have obtained a license under the Contract Labour (Regulation and Abolition) Act from the Labor Officer, declaring that they would engage labor in non-perennial activities. Similarly, the principal employer would have also declared that they engaged the contractor for non-perennial activities involving labor. This situation is likely to prompt a reaction from both parties.

Regards, Madhu.T.K

It is just a matter of time. I would suggest being loyal and honest with your new employer, explaining your current scenario to him or her.

1. I am sure your new employer will help you out.
2. Take resignation acceptance on mail if possible.
3. If you haven't submitted any documents or any undertaking, then just walk out of your current job.
4. I know it is hard to leave a 1.5 years of experience letter.
5. But after a few years or 5 years or so, you can omit this experience.
6. Lodge a complaint before the Labor officials.

Be honest with your new employer. They will consider this for sure.

Thank you for your update on my concern. I have a good relationship with my new employer. Currently, the third-party company states my notice period is just 30 days. However, due to issues with my manager, my new employer has extended the timeframe to 60 days. Being a reputed firm with strict policies on background checks and other formalities, they require all my experience documents for processing. I am apprehensive about how this third party will react, as I mentioned in my initial post. Madhu Sir has mentioned legal ways to resolve this issue, but I am striving to resolve it amicably to leave with positive memories.

Best regards,
Sreekesh R