Facing False Accusations from Ex-Employer After Resignation: How Should I Respond?

Dear Team, I resigned from my job on 16th June 2019, stating that I am looking for a change. I received my Relieving Letter on 17th June 2019, mentioning that I will receive my settlements on 1st July 2019. They also wished me all the best in the future.

However, today, on 2nd July 2019, I received a Show Cause Notice alleging misconduct, bad behavior with colleagues and juniors, use of foul language, selling products at a lower rate than the market rates, and breaching the trust and confidentiality of the company. I would like to explain why this Show Cause Notice was issued to me.

The notice was issued when I pressed for my salary and gratuity settlement. My wife runs a business in her name, all legally. We have made purchases from my previous employer and cleared the dues promptly. Despite this, they are falsely accusing me of running a parallel company, which is untrue. The business belongs solely to my wife, and I have had no involvement in it.

In the letter, they are threatening me with legal action. I seek your advice on how to address this situation. It is important to note that I have already received my Relieving Letter.

Thank you for your understanding.

Best regards, [Your Name]

It seems like an act of threatening and is not ethical from your ex-employer's side. However, you should be very sure that you have cleared all dues payable to your employer related to your wife's business. Hope you have proof for the same. Showing cause for indulging in other business during the course of employment, even if it is genuine, is not valid when you were already relieved from the services of the company. The employer-employee bond is no more after relieving.

Seek the help of a Labor Advocate and reply to their notice stating that you have already been relieved from their services of the company and all allegations are false. Send them a separate letter to clear settlement and gratuity and keep a copy of the letter. In case of failure from your employer's end, you can take it up further with the Labor department.

Applicability of Service Rules and Standing Orders

The Service Rules or the Standing Orders of establishments apply only to individuals who are currently on the muster rolls of the concerned establishment or are present at their workplace at a specific point in time. Therefore, they do not apply to ex-employees or individuals who are not present at the workplace, either because they are not required by law to be there or their employment has ceased.

Laws may only be invoked against individuals, such as yourself, when there has been an occurrence of any unlawful act, activity, or abetment thereto.

Regards, Kritarth Team

Handling Show Cause Notices and Gratuity Issues

Hope yours is not a Public Sector Company. So long as there is no scope for the previous employer to file an FIR against you, the show cause notice can be ignored completely.

Filing for Gratuity

Regarding gratuity, you can file a case before the Appropriate Authority, which should be the Labor Officer of your area. The employer cannot deny it by saying that you were charged with misconduct because, in order to attract section 4(6) of the Gratuity Act, which pertains to the forfeiture of gratuity, the employee should have been dismissed from service after conducting an enquiry for a charge of gross misconduct. Charging a lower price is considered misconduct, and if the company has incurred any loss due to that, they can recover it from your gratuity. However, the employer cannot relieve you from service, then frame a charge against you, and subsequently forfeit the gratuity. Therefore, having been relieved from service, the employer cannot initiate any disciplinary action against you.

Dear colleague, you have resigned from your job, and your resignation has been accepted. You have also been relieved via the company's release letter. Therefore, the employer-employee relationship has effectively come to an end from the date of release. Any show cause notice issued after this date is not maintainable. Please go on record in your reply by denying all the allegations as they are false and motivated.

Thereafter, do not reply to any subsequent correspondence and move on. Any action taken by the company in this regard is not sustainable in any labor court.

Regards, Vinayak Nagarkar HR Consultant

Maybe the HR in your organization was not aware of the procedures. They should not have issued a formal relieving letter and then charged you for misconduct. Approach a suitable lawyer for redressal.