Stuck in Limbo: How Can I Move On When My Resignation Is Being Blocked?

I was working in a company for the last 3 months when one day we discovered some mischievous activity, and the company had lost some money. There were four of us involved in the matter. One of them was terminated by the company, and the other three of us received show cause notices. I replied to the show cause notice stating that I had not done anything. Two days after replying, I resigned from the company.

However, they are now refusing to accept my resignation, stating that they cannot accept it until the issue is resolved. I have another job offer in hand. What should I do now? I have not committed any wrongdoing, and the company also lacks any evidence against me. They are simply causing trouble by not releasing us. How can I proceed to join my next company?

Thanks

Dear Kailash,

As per your appointment letter, what is your notice period? You need to serve until the completion of your notice period. Have you mentioned in your resignation letter what would be your Last Working Day (LWD)?

While accepting another job, did you tell the new company about the notice period? Do they want you to join immediately? If so, are they ready to compensate for your notice period? Have you tried to extend your date of joining as much as you can?

No company can say that they cannot accept the resignation. They can hold the letter of resignation in abeyance until the completion of disciplinary proceedings. After a week or ten days, send a reminder mail/letter about your letter of resignation.

By the way, what was the exact problem that you have not mentioned? Was there some scam? Were you involved indirectly? Did you suppress material facts? Did you fail to inform the authorities even though you were privy to some fishy activities?

How did the scam come to light? Has any new auditor joined and, to establish his/her presence, inflated the matter out of proportion?

Please provide us with complete information, and only then can further suggestions be given.

Thanks,

Dinesh V Divekar

Hi Dinesh, Thanks a lot for the response. I had mentioned in my resignation that my last working day would be dd/mm/yy. I had stated, "Please let me know the formalities that I will have to complete." My offer letter has the provision of either a 2-month notice period or 2 months' pay in lieu of the notice period. I am ready to pay the notice pay. My new recruiter needs me to join ASAP.

There was a scam related to monetary transactions. The person who did it has already left the company (he was terminated by the employer even before the inquiry had started). But the management thinks that one person alone can't do it, so they believe that we all were involved.

I was called for a discussion on this matter a month ago by the management. After 2-3 weeks passed, I thought the matter was closed, so I started searching for a job. I found one that required me to join within 15 days. The day before I received the offer letter from the new employer, I was sent a show-cause notice by email (scanned and attached in the email on company letterhead). I did reply to that show cause.

Now they have not even given me my last month's salary and are not accepting my resignation, stating that until the inquiry is closed, they can't accept my resignation.

I have only 3-4 days to join my new employer. I fear that they will not accept my resignation, citing that the inquiry will continue for the next 2-3 months. I can't sit and wait for another 2-3 months without a job. Also, I will not go back and rejoin the present company, as my self-respect doesn't allow me to work there anymore.

Inquiry and Resignation Concerns

Please inform me how long they can trouble me by not accepting my resignation. How long can they take to complete the inquiry? What should I do so that I can join my new employer?

Regards.

Please request an immediate appointment with your Managing Director. Explain the entire problem in sequence and ask him to issue your release order.

Thanks,
Dinesh Divekar

The following facts are needed to answer:

a. Whether the two-month notice period has expired, and if so, when.

b. Whether the employer issued any letter refusing acceptance of the resignation.

c. Whether the penalty of the notice period is covered by your one month's salary not paid to you and any other dues, or if you have deposited the balance amount.

d. Whether any charge sheet has been issued.

e. Are you covered by the Industrial Disputes Act?

f. Any other relevant information, such as any rule of prior acceptance of the offer of resignation.

Thank you.

I had served 4 days of notice period. Two months are not over yet.

Yes, the employer replied to my resignation, stating that the resignation will not be accepted unless the inquiry is completed.

They have deducted my 1 month's salary, and I have not deposited the balance amount yet. However, I am ready to clear off any dues.

Yes, they issued a show cause notice to which I had already replied before my resignation.

I don't have the information on whether I am covered by the Industrial Disputes Act or not. Please let me know how I can find out if I am covered by the Industrial Disputes Act.

No, I had not resigned earlier.

New Information

I asked them when the inquiry will be over and when I can come to clear the dues and collect the relieving letter. They responded by saying that I need to complete my notice period, or else they will issue a termination letter. Regarding the relieving letter, they are telling me that they will not issue it until the inquiry is over by law, and they can't provide a tentative date for when the law will complete the inquiry.

However, I have not received any paper or information from any court, so I am not sure whether they have taken this case to court or are just saying this to harass me.

I feel really harassed now. I am unable to understand what I should do to get away from this situation. Please help.

As you had said earlier that there is no involvement of yours in the episode, so you should not worry. Before the employer proceeds, he has to issue you with a charge sheet stating allegations and evidence sought to be relied upon by them, and seek your reply, and follow the domestic inquiry. Only if the allegations are proved in it can they impose punishment such as termination, etc. As per your note, they are asking you to complete the notice period. One month's dues they have already recovered by not paying your salary. It is not permissible for the employer to retain salary and at the same time continue disciplinary proceedings threat unless the employee is suspended. The employer need not go to court for completing such a domestic inquiry. What is your nature of work and what the organization is doing only decides whether you are a workman or not, or covered under the ID Act. If the employer does not pay salary, it can be recovered under the Payment of Wages Act, 1936 by complaining to the Inspector.

Thanks

If there is no evidence against you and still the employer terminates you, you can resort to court for setting aside the termination order and recovering back wages and compensation.

Thanks a lot for the info. I have not done anything, but a normal middle-class person generally doesn't want to get into a court of law. Management said to me that the first person who was terminated by the company has said that whatever monetary issues that happened, I was also involved with him (all three of us were involved with him is what the first person is telling). However, we don't know if that person really said this because when we were called for the discussion, the first person was not present there. So I am not sure if that person has told the management our names or if the management is just telling this to harass us.

One more thing, if someone mentions my name in some wrongdoing, will I become a convict? All the proof which the management has is against that first person alone, but the management feels that one person alone can't do all this, so they are harassing us.

Also, how will I know if a domestic inquiry has been started by the management?

Thanks

I feel management is harassing you. If they terminated the first person, even though illegally, what prevents them from repeating the same in your case? If they intend to proceed, they have to issue a charge sheet to you.

Thanks

Both are different. In a charge sheet, the management has to make specific allegations along with the evidence sought to be produced and the persons they want to examine. A show cause notice is the anterior stage to the charge sheet to understand the stand.

Thanks

I need your help again. Management has issued a letter to me stating that they have appointed a person as an inquiry officer who is a lawyer and is not from the company. They have asked me not to leave the city until the inquiry is over and also not to join any other organization. I feel that the person appointed as the inquiry officer is not a neutral person, and the judgment can be biased.

What Should I Do Now?

Thanks,
Kailash

Understanding Your Rights Under the Shops and Establishment Act

Since they have not paid your salary for the previous month after you gave your notice of resignation, you are deemed to have been relieved under the Shops and Establishment Act. Generally, the Act requires a 30-day notice period, even if the agreement states otherwise. Refer to the Shaw Wallace Ltd case decided by the Madras High Court on 13.1.99. Additionally, you must be deemed to have been relieved as per the Mettur case cited above.

Submit a representation to the Inspector under the Shops and Establishment Act and provide a copy to your employer to obtain your relieving certificate, as it is their responsibility under the Act to ensure this process. All subsequent proceedings will be deemed null and void.

In the representation to the inspector and the employer, mention the Mettur Spinning Mills case and the Shaw Wallace Ltd case as stated above. Emphasize that you consider yourself to have been relieved on the date of resignation after the employer failed to pay you one month's salary when you had tendered your resignation.