How to Handle a New Hire Without a Relieving Letter and Protect Your Company from Legal Risks?

Dear All,

A candidate accepted our company's offer and submitted her resignation to her current organization. She served her complete notice period and also settled all her dues (loans/advances) with her company. However, she was then denied relieving from her current organization without any reasons mentioned.

The candidate is interested in leaving her current organization and joining our company even without the relieving letter. Her current company has warned her that legal actions will be taken against her, and her Full and Final settlement will not be cleared.

While our company is prepared to onboard the candidate, we would like to ensure the company's interests are protected so that the previous company does not initiate any legal actions against us.

We require an Indemnity Bond format, which is a contract through which the candidate pledges to safeguard our company from any losses incurred due to her actions or the actions of any other individual or entity.

HR#

Hi, I think you are trying to refer to the indemnity clause. You may take a self-declaration from that candidate stating that she has been relieved from her previous employer but has not yet received the relieving order. The content of the letter can be:

"I, [Candidate's Name] D/o [Candidate's Father's Name], residing at [Candidate's Address], hereby state that I'm joining [Name of Your Company] as [Candidate's Designation] w.e.f [Joining Date]. Further, I confirm that I have been officially relieved from my past employer, [Name of the Company], on [Last Working Day with Previous Employer], however, I have not received the relieving order from my past employer. I hereby indemnify and safeguard the interests of M/s. [Name of Your Company] in case of any legal action initiated by my past employer in the future."

Hi, Further to the above, I want to clarify that the candidate's past employer cannot initiate legal action without proper proof or justification as she had completed her notice period properly. However, please inquire and find out if she was involved in any misappropriation of funds with the past employer.

Dear Sir, Thank you, sir, for the Declaration format. But what relief is available in case an employee takes legal action against a previous company for their Full and Final (F and F) settlement and gratuity? Similarly, the previous company sends a legal notice stating dual employment, as the employee has not been officially relieved from the company. Can we have an indemnity bond signed by this candidate, not binding our company into any legal proceedings and also covering any costs related to legal expenses if the candidate or her previous company files any lawsuit in the future?

HR#