HR wants me to sign a document stating I am ok to wait for 180 days for my F&F

I have completed my notice period of one month. On the last day, the HR came with a document that I had to sign, which stated that I am okay to wait for 180 days for my F&F. As this was not mentioned to me in my original contract and is, therefore, against the law, I refused to sign. The HR will not give me my relieving letter until I do so. I will need to submit a relieving letter to my new employer, but since my HR is unwilling to formally release me, what do I do?

Violation of a contract by either party is an offense. However, in your contract bylaws, verify if there is any clause stating that your appointment conditions might be amended by the company, as the company holds all rights in this regard.

Breach of any contract attracts the Indian Penal Code. It is advisable to approach the situation with a legal notice instead of wasting time with the labor department, which may be filled with uncommitted officials.

What the company is doing is wrong. Company cannot unilaterally amend terms of employment. You may have to approach the Labor department with this problem.

Employers have been devising an endless number of ways to safeguard their interests and transfer the onus onto employees, blocking their relieving and payment of dues by making employees wait for legitimate dues. Waiting for 180 days is absolutely not in order.

Dear colleague,

You may like to take the following actions:

1. Write a strong letter to your MD about the unjust and unilateral conditions imposed by HR regarding the issuance of your relieving letter and F&F settlement. Demand the settlement of dues and the relieving letter within the next 3 days, or else you will be compelled to go to the press and take legal action at the company's expense and risk.

2. Simultaneously, explore the possibility of joining a new company by explaining the circumstances leading to the unavailability of the relieving letter, through no fault of yours at this stage. Assure them that you will provide it when received later.

3. I believe that without a strong reaction, the company will not be willing to compromise. I am only suggesting one of the possible courses of action unless you discover better options.

Regards,
Vinayak Nagarkar
HR Consultant

The action of your HR is wrong. What else can you do? Would you please specify on which heads the settlement of F&F needs to be done?

You need to decide which one is your priority, i.e., to join the new job or to settle F&F instantly. Is your new employer ready to accept or provide joining without the relieving letter? If yes, you should resume the job first, then proceed with a legal fight against your previous employer for not paying you the F&F. You can approach the Labor department to see if they can offer any assistance in this matter or recommend a good lawyer who specializes in labor cases to address this issue.

Dear Friend,

Timelines for the payment of Full and Final settlement are not part of the terms and conditions of employment. However, since it's a moral and legal responsibility, they are under obligation to make the payment within a reasonable time.

In the case of an employee who has resigned, it is not defined in any law as to when and how fast the FnF payment has to be made. I personally know many renowned big companies that do not bother to make the payment for 6, 8, 10, or even 12 months. These companies do not consider the impact of such behavior on their reputation, as they are aware of the large scale unemployment, making people easily available.

First, check with HR about the consequences if you do not sign. If they mention that they will not issue your RL, approach the HR Head. If the HR Head shares the same opinion, meet with the CEO and inform him about the case. If you find a solution, it's a win-win situation. If the matter is not resolved as per your expectations, continue reading below.

Here is what I suggest you can do:
a. Sign the document and collect your relieving letter.
b. Since you have not disclosed the industry you are working in, and assuming they do not conduct background checks, as the document you signed does not hold legal sanctity, you can retract that undertaking by sending a letter to them, claiming it was signed under the threat and coercion of withholding the RL. Have the letter drafted by a reputable advocate who specializes in service matters.
c. Ensure you undergo a thorough background verification and proceed accordingly.

Warm Regards,

Bharat Gera
HR Consultant
9322404765

The HR might be a fresher or was guided by someone; that is the reason he asked for the signature. Any HR will not take a signature for processing FNF for a certain period; instead, they will inform you by voice or email that your FNF will be done within 15-45 days as per company policies, not beyond this timeframe.

Maybe he was asking for a signature on the resignation form but not the time period for FNF. Have you read it properly?

If it was as you said, then you can reach out to your HR Head and settle your FNF. Reaching out to LO at the time of joining a new company is not recommended for you. Just reach out to them again, understand, and request.

Dear Friend,

Please speak to the Head of HR or his boss about the issue. Making someone sign a document that is completely illogical and unacceptable is absurd. Normally, the final settlement process does not take that long; it should take a maximum of one month.

If things do not get resolved with the Head of HR, consider sending an email to the boss outlining the facts. It's important to inform your current company about the delay and request some additional time to provide the necessary documents.

Thank you.