Can My Employer Delay My Relieving Letter and Final Settlement After Resignation?

I submitted my resignation on 30.06.2023 and am serving the 3-month notice period. On 12.09.2023, the HR department emailed me stating that my last working day would be 29.09.2023. Following this, my senior sent a follow-up email to the HR department and me regarding my pending tasks and to delay my exit. Does my employer have the right to withhold my relieving letter and full and final settlement?

Even after serving a three-month notice period, asking to remain or stay back is unfair.

There is no practical solution for this, though there are legal solutions. However, if you choose the latter, i.e., a legal solution, you may risk your career. Therefore, it is always advisable to convince the reporting officer and get relieved.

The Role of the HR Manager

The HR Manager is often seen as a glorified clerk. He cannot make independent decisions unless he exercises his power. He should have the authority to declare that "his" employee has completed the notice period of three months (which is a long period for a small company with less than 100 employees) and that it would be detrimental not to relieve the employee who has committed to joining another organization. He should have the courage to assert that forcing an employee to remain in service after the normal notice period would send a negative message about the company and its culture.

Communicating with HR

Therefore, you should talk to HR, and while doing so, highlight the responsibilities of HR in creating a fair image in the minds of current employees and those who may join the company in the future. If anyone publishes the attitude of the reporting officer on social media, it will remain there, and any person intending to join the company might reconsider. If necessary, you can approach the higher officials to whom your reporting officer reports.

Very difficult situation you are in. On the one hand, you have completed the notice period on 29th Sept., on the other hand, your relieving is held up. The employer definitely has no legal right to hold your relieving and delay the full and final settlement beyond the notice period. Yet, if the employer chooses to act nasty, then the employee has very few effective options.

Options for Resolution

The query doesn't reveal your status in the organization. Presuming you are a workman as per the ID Act 1947, you have the option to approach the Labor Officer of the local area and make a complaint in writing. Another method could be to threaten the official HR department by exposing the organization on social media, press, local chamber of commerce, etc., about their unhealthy practices.

Hi, here are some general guidelines. In situations like this, it's important to consult with a legal professional who is familiar with employment laws in your jurisdiction for accurate advice.

In most jurisdictions, employers are generally obligated to provide employees with their relieving letter and full and final settlement in a timely manner after their last working day. However, there could be exceptions or specific clauses in your employment contract that might affect this.

Steps you can take

Review Your Employment Contract: Look over your employment contract to see if there are any clauses regarding the notice period, termination, or the issuance of relieving letters and settlements.

Communicate with HR and Management: Have a conversation with your HR department and possibly your immediate supervisor or manager. Ask for clarification on why they are holding back your relieving letter and settlement.

Document Everything: Keep records of all communications (emails, messages, etc.) related to this matter. This can serve as evidence in case you need to escalate the issue.

Consult a Legal Professional: If the issue persists and you believe your rights are being violated, consider seeking advice from a labor or employment lawyer. They can provide specific guidance based on the laws in your jurisdiction.

File a Complaint: If necessary, you may need to file a complaint with the appropriate labor authority or take legal action. Depending on the laws in your area, it's crucial to consult with a legal professional who is familiar with the employment laws in your specific jurisdiction. They will be able to provide you with the most accurate and relevant advice based on your situation.

Thanks

No employer is entitled to deny or withhold an Experience Letter (Service Certificate in legal terms) of an employee or former employee. If the employee demands such an experience certificate during or after the term of employment, the organization is bound to issue one.

Legal Obligation to Issue Experience Certificate

To cite the labor law, 2J(3) of the Kerala Shops and Commercial Establishments Act, 1961 mandates that the employer shall issue the service certificate in Form BE within seven days from the receipt of such a request from the employee. Every state has its own Shops and Commercial Establishments Act, and they will have similar provisions.

Sir, there is one more query here. I was the branch head of a bank branch. Can I file a case in the labor court against the company?