Is It Legal for Companies to Deny Relieving Letters? Seeking Advice on My Situation

Hi, I am Kishore, a software developer. I joined Nimbylz Technology Solutions in Chennai on 21st April 2014. In the offer letter, it has been stated that "the employee will not be given a relieving letter or experience letter if he quits or the company stops him." I want to know whether it is legal to have this point in the offer letter for signing. I quit during November 18th, 2014, but my HR is not ready to provide me with a relieving letter or experience letter. Please reply because due to this, I couldn't move to another company.

Legal Obligations for Issuing Experience and Relieving Letters

The act of the company is illegal. If you are resigning and serving the stated notice period, they should give you an experience and relieving letter. Each state has different rules, so you need to check the Shops and Establishment Act.

In Maharashtra, it is a legal requirement that the company gives service certificates to an employee at the termination of service (termination is the end of service, including resignation and termination by the company).

Regards,

Agreed with Mr. Saswata Banerjee. This query is also addressed at: http://www.lawyersclubindia.com/foru...ter-114409.asp

Relevant Acts and Rules

You may go through the Tamil Nadu Shops and Commercial Establishment Act (Sec: 28, 41, 43, 47...) and Tamil Nadu Shops and Commercial Establishment Rules 1948. You can apply for a certified copy of Form-E, F, G, N, etc., as per Rule 16(1) (Register of Employment/Service Book) and approach the Inspector appointed under this Act.

Additional Resources

You can also download the Act, role, and contact details of Labor Officials from: https://www.citehr.com/294048-notes-...t.html#1957783, http://www.hrindya.com/wp-content/up...t-Act-1947.pdf, http://www.tn.gov.in/rti/proactive/l...ook-labour.pdf

You will find the information posted as useful: http://legalpagal.blogspot.in/2012/0...actory-or.html

It is an illegal condition that your employer has included in your appointment letter. You can definitely take legal action against your employer as per details provided by Mr. Saswata Banerjee and others. However, all this unfortunately takes time and also costs money towards lawyer's fees and other associated expenses. The first priority for you is to join your new company, and once you are settled there, you can think of taking action against your past employer.

I would suggest that you speak to your new employer and discuss this matter. Show them your past appointment letter, payslip, PF account details (provided your last employer was registered with PF authorities), etc., to prove your employment and the period of your service. Nowadays, many companies do not insist on a relieving letter because, for many reasons, a lot of companies harass employees who have left employment and do not issue or delay the relieving letter and full and final settlement. I am sure the HR people in your new company would be aware of this. So go ahead and speak to your new employer.

Best of luck.

Regards,
Bhaskar J. Roy

As discussed and advised by our Citehr experts, refusing to provide an Experience Certificate and Relieving Letter is illegal. If it is mentioned in your appointment letter, it serves as proof to file a suit against the employer. However, in practice, when an employee resigns at a time when the employer requires their service, the employer typically refuses to issue these documents. I am aware that in some employment agreements, there is a stipulation that the employee must work for a minimum period, and resigning before that period is considered an offense, giving the employer the right to withhold the relieving letter. This is often due to the significant investment made in training the employee.

In reality, many employers understand the circumstances surrounding resignations and do not insist on a relieving letter or experience certificate. As mentioned earlier, the appointment letter and pay slips are usually sufficient documents for job offers. If an employer does insist on these documents, it is advisable to explain the situation, as employers are familiar with the job market. If you possess the qualities that an employer is seeking, they are unlikely to be concerned about these formalities.

All the Best!

Regards,
P. Paraman.

Inspector's Role Under the Shops and Establishment Act

It is the duty of an inspector under the Shops and Establishment Act to ensure that an employee receives their relieving letter and dues. If an employer fails to do so, the inspector, being a public authority under the Right to Information Act, 2005, can request a copy of the relieving certificate from the employer, which the employer will not be able to refuse.

I have a few suggestions. First of all, you should send a request letter asking for a minimum of a 'relieving letter' with a rider that failure will be taken to court at their cost and risk. After a week or so, if it's not forthcoming, you should issue a legal notice through an advocate. If it fails, you can file a suit in a civil court of appropriate jurisdiction as mentioned in the appointment letter. I think you'll have a fair chance of getting it provided you have all documents with you to support your cause.

On the other hand, had you resigned and the same was accepted by them by way of mail or an acknowledgment or communication to show they accepted your resignation, it should serve your purpose. Moreover, to support your litigation, you need a 'document from your prospective employer demanding such a relieving letter failing, which you stand forfeited'. This will serve as a 'cause of action' and the court can act on that. Try this.