Can a Company Deny Relieving and Experience Letters if I Leave Before 3 Years?

I am to join a company in a month. I am interested in the position. However, in the offer letter, it is mentioned that the company won't be providing a relieving letter and experience letter unless I work for more than 3 years in the company. Can the company not provide me with the relieving letter and experience letter if they mention so in the offer letter, especially if I resign before the specified work time? Kindly provide assistance from your experience and knowledge.

Regards, Vishnu

Company's Policy on Relieving and Experience Letters

The company has made it very clear at the appointment stage itself that it will not provide either a relieving letter or an experience letter if you leave service before the stipulated period of three years. You should accept the terms and join the service only if you agree to them; otherwise, you may look elsewhere.

Ethical Considerations of the Clause

The question of having such a clause in the offer of appointment is a matter of ethics, and the company in question has its view on it. They are trying to implement a negative covenant in the appointment to retain employees for at least three years. This shows how desperate the company is for employee retention. How effective this will be, only time will tell, but certainly, this is not the best way to retain talent. In this way, the company is only exploiting the unemployment situation.

Alternative Approaches by World-Class Organizations

There are world-class organizations that pay compensation to people who leave services within the initial three months, as they would otherwise be a misfit and would cost the company much more at a later date.

Concerns About Employment Conditions

Though I concur with M/S KK!HR and Nathrao on their explanatory note about the unconventional condition imposed by the particular management for the purpose of retaining talented employees in the organization, I would emphasize that such a condition smacks of an indirect bonded labor system. This condition also implies that no resignation would be accepted within the stipulated period.

Suppose an employee finds a better opportunity within a year or two and submits their resignation. Most probably, it would not be accepted but only rejected to avoid documentation of a formal relief. Naturally, the employee would be tempted to walk out without formal relieving orders as well as an experience certificate, deeming the explicit condition in the offer letter already issued as proof of their tenure in the company.

Then, the management can play the game of employment abscondment and torture the employee or spoil the background verification with a wanton claim of the continuation of their services on record. Therefore, I would suggest that if the questioner is optimistic about their employability and shrewd enough, they can negotiate with the management to substitute the condition with a sufficiently long notice period, if any, as they deem reasonable.

Employee Policies and Offer Letter Clauses

Employees are required to work according to the policies and the offer letter. However, the clause mentioned seems tricky to enforce with the employees. Of course, employees should follow the same, but you can request them to provide an experience letter if they do not accept the offer letter clause. You can ask them to provide any letter or an acceptance email of resignation.

Please write an email to your manager mentioning your Date of Joining (DOJ), Name, Designation, Reason for Leaving, and Date of Leaving (DOL), and get the approval. This may help you provide for the next company.

You can also approach the HR department, mentioning the same regarding your issues.

Please consider twice before joining, unless you are hard-pressed for the job or seeking a change in employment.

Warm Regards,

Bharat Gera
HR Consultant
9322404765