Feeling Trapped: How Should I Handle My Company Refusing My Resignation?

I am completely frustrated and seek your suggestion. I have submitted my resignation letter to HR, and HR took me to our CEO for further processing. However, our CEO strictly denied approving my resignation and instructed me to withdraw the same, holding my payment. Now, when I submitted my withdrawal letter from the resignation, they are pressuring me to sign a bond stating that I will commit to staying for one year before they approve the withdrawal letter.

They are neither accepting my resignation nor approving my withdrawal letter. Kindly guide me! PLEASE

Regards

You have not mentioned why your CEO wanted to retain you. What is your designation? How many people report to you? What is the nature of your industry?

What is happening with you is quite unfortunate. Nevertheless, you have approached this forum too late. When your salary was put on hold, you should have immediately approached this forum.

There is nothing like forced employment in India. Terms and conditions of employment should be acceptable to the employee. If these are not acceptable, then the employee is free to say no. I do not know whether yours is a case of joining a competitor; however, courts have given a ruling that no employee can be restrained from joining a competitor. Ref: American Express Bank Limited Vs Ms Priya Puri 2006 LLR 682 (Del HC).

Against this backdrop, I recommend you approach the labor office of your area and explain your problem to the Labor Officer (LO). Generally, LOs prefer to communicate in the local language. Carry with you evidence of your employment like an appointment letter, identity card, etc. Overall, the LOs help employees over employers. Most companies do not muster the courage to go against what LOs say.

All the best, and come back to us when you solve your problem.

Thanks,

Dinesh Divekar

Understanding Your Resignation Rights

Resignation is your right, and you can resign anytime you wish, provided that you have served the agreed notice period or paid the equivalent amount in lieu of the notice period.

If you have submitted your resignation (assuming that you have proof of such submission), then unless the company rejects your resignation in writing for reasons like the continuance of any domestic inquiry against you, it will be deemed that your resignation has been accepted even if there is no communication in writing.

Proof of Resignation Submission

Do you have any proof of sending the resignation to the company? Like an email or an acceptance stamp.

Communication from the CEO

Did the CEO ask you verbally to withdraw the resignation? Or is there any written communication?

Withdrawal of Resignation

Have you withdrawn the first resignation? Was it in writing? Do you have proof of acceptance of such resignation?

Validity of Employment Bonds in India

Please note that a bond/agreement to withhold any employee is not valid in India, as already pointed out by Mr. Dinesh above. The company can recover the amount of any special training, if any, given to you through this bond and nothing more. So do not worry about it.

Steps to Finalize Your Resignation

Since you have already decided to resign, please send the resignation through registered post/speed post (provided that you have no documents of the earlier resignation) and also mention that you are ready to serve the notice period or ready to pay the equivalent amount as per the appointment letter at your convenience.

Communicate carefully and communicate in writing. Also, note that your employer cannot withhold your salary irrespective of the resignation issue. You can also ask in writing with proper acknowledgment to clear any outstanding salary.

Regards

Don't make any commitments, please. When you joined this post, you did not sign any agreement, so there is no need to give one now. As there was no legal binding for you to resign, you have every right to approach the police for help to avail your constitutional right of freedom to work anywhere, as per your wish, since there was no previous agreement.

Go ahead and approach a lawyer. Giving notice time is taken into account in your current stage, so go for a police complaint to protect your constitutional right to work freely. All the best. The employer has no legal right to stop your decision.

Dear friend, our learned friends Dinesh and Ritesh have provided invaluable advice on the query from the legal perspective, which I fully endorse. However, since you seem to be highly confused due to frustration, I would like to add to their response for the simple reason that nobody can give you better advice than yourself. It is your problem, the intricacies of which cannot be fully disclosed at times.

The situation described in the post reminds me of the proverb: "You can lead a horse to water, but you can't make it drink!" So, have some introspection—why do you want to resign? Is it because of a better job? Or do you not want to be a working woman anymore due to any family problem? Or is your present work atmosphere not suitable? And why does your CEO refuse to accept your resignation and want to retain you with your guarantee for a minimum stay of one year? Is it because you are a star performer? Or is this the usual practice followed in the organization? Are there any likely practical impediments in executing such a bond? Think about the consequences of your sudden exit without an approved resignation and whether it is worth it.

If you are still persistent, it would be better to approach the CEO once again and try to convince him politely about the need for your exit or the reason for your continuity without any condition.

Regards

They are arguing that I have signed a bond of three years, but there is no proof of any bond nor any signature of mine. Since they recruited me from the college campus, they are claiming that I have signed with the company.

The second issue is that I have family problems due to which my parents need my support. They are just postponing my start date, and to date, they have not given me my salary. I am an engineer here.

Kindly guide me, please.

If they are arguing, let them. Without any documents or signatures, nothing is valid. Even your college cannot enter into a bond in your favor. There may be a bond or agreement between your college and employer (related to campus interviews or recruitment), but that has nothing to do with your employment.

I once again say that resignation is deemed to have been accepted if not denied by the employer for a proper reason.

Hi,

As advised, they cannot forcefully stop you from leaving. You either need to tender notice pay or serve the notice period. If a bond is signed, a copy of the same should be provided to you, and you should have signed it as well. The college cannot sign on your behalf while keeping you in the dark. Go ahead and take steps to come out of this situation.

Regards

Contextually, a vital piece of information, i.e., your length of service in the organization as of the date of your resignation, has been omitted by you. Anyway, if there is a genuine bond for three years of compulsory service, what is the necessity of a fresh bond for a period of one more year? I don't think any educational institution will execute such a bond on behalf of its student upon her campus recruitment by an employer. Even if done, it will not bind the student/employee. So, the bond issue seems to be a hocus-pocus for the sake of threatening you as well as retaining you. Certainly, there would be an exit clause of employment on mutual terms in your letter of appointment. If your family circumstance necessitates your immediate resignation, submit a fresh resignation setting forth all that happened consequent to your earlier one and buy out the notice period if mentioned in your appointment orders. (Prior to that, ensure whether your original educational certificates are still with the employer). Since you are an Engineer by qualification and likely to pursue a career outside of employment, avoid confrontation and approach the issue tactfully in view of your future employment. As far as employers are concerned, they prefer only brilliant employees and not just intelligent ones!

Regards

Dear Anon Friend, Is your price only one month's salary? Why are you underestimating yourself? Cool, go home and forget you joined them. Let the employer and CEO go to court and take you to task. No bond is valid, and no company can enforce it on your behalf. Just give a letter on the 30th day after you gave your resignation and go home to relax. By the way, as per you, your family needs you now, which is much more valuable than one month's salary. I hope none of your original degrees and documents are with them.

Blessings,

Dr. Ram

No bond is valid in India. Please see the attachment.