Is it mandatory for employer to give relieving letter?

I'm an employer. My employee resigned from the company and sent a resignation mail. As per the company policy, I requested him to serve the notice period of 1 month. The same was mentioned in the resignation acceptance mail. But after sending the resignation mail, he didn't do office work (WFH) nor did he attend any calls from our side.

After 15 days, he asked for a relieving letter. When questioned about why he is not serving the notice period, he threatened that he will return company property only when we provide him with the relieving letter. He had the company's computer, desk, and chair. After several calls and heated discussions, he finally returned the company property. During these discussions, he was ill-mannered and spoke badly about the company.

Is it mandatory to give him the relieving and experience letters in this case? Can we include this bad experience in the relieving letter?

Note: He is skillful at his job, but his attitude towards the company was not right.

Dear member,

It may be noted that the behavior of the employee and the issue of the relieving letter (on his separation from the company) are two independent things. These cannot be clubbed together. Anyway, paragraph-wise replies or suggestions are as below:

a) I'm an employer. My employee resigned from the company and sent a resignation mail. As per the company policy, I requested him to serve the notice period of 1 month. The same was mentioned in the resignation acceptance mail. But after sending the resignation mail, he didn't do office work (WFH) nor did he attend any calls from our side.

Reply: - You had mentioned serving the notice period in the resignation acceptance email. However, what about the terms of separation which are generally mentioned in the appointment letter? Conditions of the separation mentioned in the appointment letter are binding on both sides.

Secondly, if he did not complete the work allotted to him, then it becomes a matter of indiscipline. Why did you not issue a show-cause notice for not completing the assigned work? In the same show-cause notice, you could have asked for an explanation for not attending the official calls from the company.

b) After 15 days, he asked for a relieving letter. When questioned about why he is not serving the notice period, he threatened that he will give company property only when we give him the relieving letter. He had the company's computer, desk, and chair. After several calls and heated discussions, he finally returned the company property. During these discussions, he was ill-mannered and bad-mouthed about the company.

Reply: - It appears that the conditions of separation are not framed properly in the appointment letter. Why did he feel it appropriate to ask for a relieving letter just after 15 days? What was his take?

Secondly, while issuing the company assets to an employee, did you obtain a proper receipt from him on the "Asset Allocation Form"? Have the conditions of returning the company's assets at the time of separation been mentioned in the appointment letter? The bitter incident is probably because of improper or incomplete documentation.

If you had proper documentation, you could have told him that the administration of your company reserves the right to file a police complaint about not returning the company's assets. This threat could have mellowed him down.

c) Is it mandatory to give him the relieving and experience letter in this case? Can we include this bad experience in the relieving letter.

Reply: - As explained earlier, the issue of the relieving letter and the bad behavior of the employee are two independent things. There cannot be a trade-off between the two. For bad behavior, your company has the right to initiate disciplinary action. However, withholding the relieving letter will nullify his tenure at your company. It could destroy his career as well. By the way, no law mandates the compulsory issue of the relieving letter. However, it is a secondary matter.

d) He is skillful at his job, but the attitude towards the company was not right.

Reply: - If you knew well that his attitude about the company is not good, then you had sufficient time to avoid the bad incident at the time of separation. You could have clarified the conditions of separation well in advance to him.

Final comments: - Whether the organization is small or big, workplace fracas is common. Therefore, without thinking much, move on. Nevertheless, improve on your administrative practices. Improve the documentation to bring clarity.

About competence and adamant nature: - This is common in smaller companies. Smaller companies find it difficult to attract talent. Therefore, the employee whose performance is above average, though a duck, starts thinking that he/she is a swan among the ducks. Bigger companies have the financial muscle to arrange the replacement as early as possible. Their systems and processes are also stabilized. However, this is not the case with the smaller company. In the bargain, they have to depend more on their people than the processes. An over-smart chap takes undue advantage of this organizational weakness!

Thanks,

Dinesh Divekar

Dear Colleague,

We understand the challenges faced by employers, and such incidents occur across industries. The "Typical Mentality" surfaces in employees when they feel cornered and confident of securing employment elsewhere. They may overlook the goodwill you have shown. In today's world, the sense of "Loyalty" that once existed is no longer as influential.

There is no legal requirement, under any law, to provide a relieving letter unless specified in your establishment's Service Rules or Standing Orders. However, if you choose not to release the employee, your statutory obligations will persist, potentially leading to future benefits. Handling this situation requires a tactful, rather than emotional, approach. It is advisable to release such individuals and prevent re-hiring opportunities.

While you can mention the employee's negative attitude in the relieving letter, consider the long-term impact. Criticisms, though emotional now, can have lasting effects on the individual and send the wrong message to your organization's other employees. Therefore, it is wise to release the employee, having already recovered your company assets. You may choose to blacklist them from future employment within your company or your network. Moving forward, focus on your business and leave behind such individuals.

Consider the wisdom of Thirukkural, the revered guide to life in Tamil by the Great Saint Thiruvalluvar:

Thirukkural:
"To punish wrong, with kindly benefits the doers ply;
Thus shame their souls; but pass the ill unheeded by"

Meaning:
The most suitable retribution for those who wrong you is to shame them with kindness, letting go of both the harm and the good on both sides.

By handling this situation with grace, you can showcase your leadership to all team members under your guidance.

Issuing a relieving letter is a practice to confirm that the concerned employee is not working from the recorded date. This helps avoid future issues, if any. Due to various legal complexities, the majority of organizations issue an offer letter that details all employment conditions. Only when the proposed candidate accepts the offer letter by signing it, does it indicate acceptance of the appointment terms. These terms typically include the notice period, returning the employer's assets, non-disclosure agreements, etc. In the absence of such conditions, former employees, knowingly or unknowingly, may create unnecessary issues.

Dear Sir,

I endorse all the above views of my learned colleagues, but at the same time, I would like to mention a point here. In a relieving letter, it is generally written that the individual worked from [start date] to [end date] in the position of [Designation], and they resigned and were relieved on [specific date]. Their salary at the time was [amount] Rs. per month. There is an expectation from the employer or the signing authority that a statement regarding the individual's conduct needs to be included. However, it is advised not to mention any specifics about character or conduct and simply provide the necessary details for the relieving process.

Regards,
RDS Yadav
Director,
Future Institute of Management and Technology, Bareilly
and
Labour Laws Adviser,
NAVTARANG HR SERVICES
Email: navtaranghrs@gmail.com

Hello,

Well, this problem can be resolved in two ways:

Either you can be professional and give him the relieving letter or not provide him with the letter.

For the uninitiated, providing a relieving letter is not legally mandatory in our country.

In my opinion, you should give the letter to avoid any issues in the future. Not to forget, the employee has nothing to lose, but not providing him with the letter can impact the reputation of your organization. So, just give his relieving document and finish all formalities once and for all.

Additionally, if you decide to do the same, make sure not to include any negative remarks in the letter.

I hope this answer helps you.