Facing Delayed Salaries and a New Job Offer: Can My Employer Deny My Relieving Order?

I am working in a manufacturing company as HR, and due to market conditions, the company was not able to pay salaries on time. They have recently cleared workmen wages for the months of June and July 2014. The August month's salary is still pending for them. As usual, staff will be getting their salary after the workmen's salaries are credited, which means we have still not received our salary for July and August. Now, I have received a job offer from a good company and want to submit my resignation. However, I wish to serve only a 15-day notice period as I will not be receiving a salary for at least two months - August and September. Some of my colleagues are suggesting that I should resign after receiving my July salary. But I do not want to delay it, as I intend to provide a notice period to allow my management to find a replacement.

Concerns About Relieving Order and Service Letter

In this situation, can my management refuse to provide me with a relieving order and service letter? I am not going to request payment for August and September salaries. They have the option to adjust my remaining 15 days' salary and available earned leave, which needs to be paid in the final settlement. However, I am concerned that they might decline to issue a service certificate.

Ultimately, I want my departure process to be smooth, and I aim not to spend more than 15 days in this company. Can anyone advise me on how to proceed with this?

The details posted by you reveal that the company you are working in is facing financial problems due to delayed receipts from debtors. Your post further reveals that the company has paid arrears of wages to workers for the months of June and July 2014, which indicates that the company does not intend to withhold the wages and salary. It further gives an inference that the company does not intend to downsize or close the business as you have not written that the company has issued any circular/notice of retrenchment of employees.

Notice Period and Job Offer

Now, coming to your point that you have received a job offer from another company and you want to give 15 days' notice to maintain good relations with the company. The period of notice will be governed by the terms and conditions of your appointment letter/service rules of the company. I advise you to speak to your management and explain your position. You can request a waiver of the notice period and adjust the salary of the short notice period from the arrears of salary payable to you. I am hopeful that the management would be kind to listen to you and offer you a solution.

Regards,
Srivastava C.M. Lal

Your query is well answered by Shri. Srivatsava, our learning contributing manager, very clearly. In the interest of both the employee and employer, the problems should be solved amicably by sitting across the table. As you stated that your company is not financially sound and is delaying the disbursement of salary, you can submit your resignation letter to the management and request early relieving by giving the notice period. Don't express that you are ready to forego the salary for two months. The management may be kind enough to consider your request favorably and relieve you. I hope that your personal request may resolve your problem.

Wishing you all the best,

Regards,
Adoni Suguresh
Sr. Executive (Pers., Admin & Ind. Rels) Rtd
Labour Laws Consultant