Notice Period Dilemma: Can Companies Legally Withhold Relieving Certificates?

G Nachiar
What is the procedure for the notice period if an employee quits the organization? If in the appointment clause, it is stated to give a 3-month notice period in lieu of 3 months of basic salary, and if an employee is willing to pay 3 months of basic salary to the company, can the company require the employee to stay for 3 months and withhold the relieving or service certificates? Can the company face any legal action from employees for not providing the relieving and service orders? Please clarify.
vmlakshminarayanan
Hi, As per the terms and conditions of the appointment order, if either party can terminate by giving 3 months' notice or 3 months' salary, then you cannot hold the relieving of the employee. Because the employee is willing to follow the separation clause by giving 3 months' basic salary or whatever it may be.

The only thing you can do is call the employee for a discussion and explain that the company requires some breathing time to look for a replacement. Also, he needs to hand over his responsibilities and ask him to support for 30-45 days, with the balance of days adjusted from his settlement.

Being in HR, our role is to look for an amicable solution wherever possible and should not complicate the issue further.
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute