Facing Threats After Resigning from an Unregistered IT Company: What Should I Do?

Seeking Advice on Resignation from an Unregistered IT Company

I am working in an IT company located in Bangalore. The company is not registered with the Ministry of Corporate Affairs (MCA) and is situated in a residential area. They are not providing any payslips or filing any taxes. Additionally, they have taken possession of all my original documents.

Due to some family issues, I have decided to resign from this company. I have already submitted my resignation letter. I have been with the company for 8 months, during which I signed a copy of the offer letter that includes a one-year agreement.

However, my employer is now insisting that I should not leave the company. They are threatening legal action against me if I choose to leave, mentioning they will post negative reviews about me on NESSCAM and even blacklist me.

I am unsure of what steps to take next. Any advice would be greatly appreciated.

You should have all your original documents with you. If you have signed any document, it means that it will be considered for any legal actions by the employer. It is better to have a mutual understanding with them and resolve the issue. If they agree to accept any payment in lieu of breaching the agreement, then proceed with the process.

The first and important part here is that, as you mentioned, the company is not registered under the Ministry of Corporate Affairs. This means it is registered under which act? Is it a Pvt. Ltd., Proprietorship, or Shops? Who has signed the agreement or offer letter as the representative of the company?

Thank you.

My comments on your issue, without reading any document from you, are as follows:

1. Normally, I avoid making comments on any legal issue without fully and carefully reviewing all the relevant documents.

2. Prima facie, it seems to me that the contract between you and your employer may be illegal.

3. It is illegal for your employer to retain your original documents and not return them to you.

4. Your employer cannot blacklist you, but you can blacklist him with NESSCAM, which is an association of IT employers.

5. Not every employer is required to be registered with the MCA. Only companies such as Ltd., Pvt. Ltd., and LLP are mandated to be registered.

6. I recommend that you seek the advice of a good lawyer, providing all your employment-related documents, and serve a legal notice to your employer.

7. I would not have advised you to spend your time, money, and energy on serving a legal notice to your employer, but since your original documents are in his possession, you may have no other choice.

Wishing you all the best.