3 Months notice period with absurd Buyout & experience letter

Hello Everyone,

Please advise on my current situation. I have received an offer from a company based in India with a joining date at the end of June 2018. The notice period at the Indian company is 3 months, and if one wishes to buy out of the notice period, the amount required is 3.5 times the basic salary for a period of 2 months. This buyout amount seems to be excessively high. I have already served 1 month of notice, during which they deducted 30 percent of my previous month's salary due to my resignation date of April 12, 2018. Currently, I have 7 days of vacation remaining.

Due to my current financial circumstances, I need to repay some home and car loan dues before moving out. This leaves me with little money to support my expenses outside India since the new company's salary will only be credited after a month.

For the visa processing of the new company, I have a letter issued to me in April 2018 stating that I have been employed with the Indian company since last year. The letter is primarily for visa purposes.

I have requested the company to consider taking my 30 percent holding and 1 month's salary for May 2018, along with my 7 days of vacation, in exchange for the relieving letter, as I am unable to afford the buyout amount.

Please advise on the options available for an early resolution and obtaining the experience letter.

Thanks in Advance

Dear friend,

I have a doubt whether any inadvertent mistake had crept in the drafting of the post. If the notice on resignation is a maximum period of three months and the buy-out to facilitate immediate or early exit is three months pay (may be either gross or basic only as stipulated in the contract of employment), the formula can be Current Monthly Gross/Basic pay X 3 only. In the case of part compliance of 1 month's actual service, it can only be Current Monthly Gross/Basic pay X 2 only. How can it be 3.5 X Basic X 2? What does the "3.5" actually denote?

Similarly, any prospective resignation on its acceptance would take effect only from the actual date of relief. As such, the employer is bound to pay for the actual period worked up to and inclusive of the date of relief. If the relieving date falls in the middle of the month, of course, the employer may hold it till the regular date of disbursement of salary.

If the version of your description is correct contrary to my doubt, then the stand of the management is totally wrong as well as illegal. Try to politely explain the position to convince the management and get your legal dues as well as experience certificate. If it is not possible, inform the new employer about the problem and join the new Company with the available credentials of your previous service. Later you can recover your dues by appropriate legal means.