How Can We Legally Protect Our Company When an Employee Leaves? Seeking Advice!

Dear Professional,

Is there any format for which we can have the employee sign upon leaving the job to ensure they cannot take any legal action against the company? Please provide.

Thank you.

Hi, what is the requirement for that? Why are you anticipating that the employee might take legal action after exit?

Even if you take a self-declaration or undertaking from the employee during the exit, tomorrow after relieving, the employee might claim that he was forced to sign the declaration/undertaking at the time of exit. So please share the actual purpose behind this.

Dear Sir, We are looking for a format of self-declaration or undertaking from the ex-employee after exit.

In the normal course, no employee shall initiate legal action against their employer company unless the company resorts to unethical labor practices against the concerned employee.

As a citizen of our country, one has certain rights, one of which is the right to pursue legal remedies. Such a right cannot be taken away by an agreement with the employee. Such agreements are a nullity in the eyes of the law as per the Contract Act of 1872. So, it is strictly advisable not to venture into it.

However, when paying the terminal dues of the employees, you can take a written declaration that with the final settlement, all the claims and other dues regarding the employee's employment in the firm are considered settled, and there are no claims left. In the event of any subsequent claim being made, an objection to its maintainability can be raised that the claim is barred by legal principles of estoppel and acquiescence.