Startup Dilemma: Can We Backdate a Relieving Letter Before Our Official Launch?

Hi,

I am working in a startup and joined it in October 2019.

Question: An employee who was part of the core team has resigned. He joined in 2018, but the company's incorporation date is September 2019. Is it okay to issue the relieving letter with the joining date as 2018? If not, what is the solution? (Please mention the supporting reason for your answer.)

Regards,
Alisha Zaidi

Dear Bijay,

Incorporation of a business entity under the Companies Act, 2013 is a legal requirement for its existence as a body corporate under the law. Therefore, employing people for the tasks connected with forming the entity is an inevitable aspect. Consequently, the company, after its incorporation, can rightfully specify the joining date of employees who were hired before the actual date of incorporation in case of their termination of employment later.