Struggling to Get My Relieving Letter and Final Settlement: What Should I Do Next?

I have worked for a construction company as a DGM in Bangalore for 3 years and resigned with a one-month notice period as per the appointment letter. The resignation letter was submitted by email to the VP, Director, and HR, as well as a hard copy. Although the company has not accepted my resignation letter, I have clearly stated my intention to leave.

After 20 days of my resignation, the VP asked me via email to submit reconciliation statements, stock registers, and asset details for consideration of relieving me. All the required reports were promptly submitted via email. However, the company has not appointed a replacement for my position. Consequently, I sent an email to the VP, Director, and HR department stating that today, the 4th of September, is my last working day with the company, and I am leaving after serving the one-month notice period.

On my last working day in the office, I met with everyone and handed over company equipment such as the SIM card and data card. However, my director mentioned that he wishes to verify the documents submitted before signing the relieving form.

Despite sending two follow-up emails requesting the relieving letter, I have not received a response from them.

One month after leaving the company, the VP is now asking for an explanation regarding alleged poor workmanship and bad quality of work during my tenure, to consider issuing the relieving letter. It's worth noting that the VP was actively involved in the project and worked alongside me for the past 4 months, including my notice period.

I am disheartened by the current situation, especially considering that I received an award from the company for the project among the group of companies. The HR department has remained silent on the matter and is directing me to obtain the director's signature. The delay in obtaining the relieving letter is affecting the settlement of my balance salary, 1.5 years' worth of bonuses, and 32 days of encashable leave salary.

I seek your advice on how to proceed further, including any necessary legal steps.

Legal Action for Full and Final Settlement: Challenges and Recommendations

Getting the F&F by going legal is a very remote possibility because you will have to file a civil case to get the matter settled. Even for getting your unpaid salary, you cannot proceed as per the Payment of Wages Act because you were a manager and not a worker. The only Act that does not differentiate a manager from a worker is the Payment of Gratuity Act, but unfortunately, you are not entitled to that as you worked only for 3 years.

In your case, it would be proper if you meet the Director in person and discuss the issue to sort it out. There should be something that is irritating him, or he might be misled by somebody else in the company, and that can be sorted out only if you meet him personally. Regarding any work done during your period, you cannot escape from your liability just by saying that you have left the company. Therefore, if the company has withheld your payments, the company cannot be blamed either. It is advisable to settle the issue rather than going legal.

Regards,
Madhu.T.K

Thanks for your reply. Is it possible to withhold salary and benefits for work mistakes? Is there any law?

Supervision in Construction Projects

In a construction project where 20 engineers are working on a huge project, is it possible for one person to supervise 600,000 sq. ft. of building project?

Post-Employment Accountability

Can the company blame the person after 30 days of leaving the company without any written details, even after working there for 3 years? I have all the records for the period worked. Please advise on how to proceed further.

There is no law that states wages can be withheld for defective work, but there can be a custom allowing you to retain an amount until satisfactory commissioning is completed. However, this should be as per the terms and conditions, and if there is no such provision, you are expected to release the payment soon after the project is ready. Similarly, the salary of a departing employee cannot be retained unreasonably unless otherwise stated in the appointment order. For instance, on resignation, the salary due will be released only after conducting proper auditing and inspection of the work done. When you file a writ against the act of withholding your salary, it will not be addressed immediately; it will take its own time.

Naturally, in the case of a workman, they could directly file an application for the recovery of money due from the employer through dispute settlement machinery like the Labour Officer or Labour Court. However, in your case, this direct action is not possible. That's why I have advised you to meet with the directors and appraise them of the situation.

All the best,

Madhu.T.K

Advice on Handling Resignation and Relieving Letter Issues

Gopal1, please note that your industry is a private entity. Your resignation has created a vacuum. In view of this, the management is unhappy since the company has not trained a second in command, and no substitute is available; this type of issue occurs. If you follow the legal path, definitely, your management will make false charges and may claim damages as well. Be cool and follow the advice given by expert members.

Regards,
SPKR