Stuck Without an Experience Letter After Resigning: How Can I Handle This Unfair Demand?

Hi all,

I have been working for X company for 1.8 years as a Y contract employee, essentially a third-party employee.

Now, as I am exploring new opportunities, I resigned, and the client has released me after my 29-day service at their location. However, the Y contract employer, in the appointment letter, stipulated a 3-month notice period or a buyout option. Despite the client releasing me without any negative feedback, the Y contract employer insists that they terminated me and demands 2 months' CTC + GST payment for providing an experience letter; otherwise, they will label me as absconded.

Due to personal reasons, I am unable to pay the requested amount. This situation has made me mentally weak. I seek guidance on what steps I can take. Please assist me.

I have previously worked in an OEM company.

Hi, With regard to the separation clause, you need to follow it compulsorily as per the terms and conditions of your appointment letter. If it is mentioned as 3 months, you need to honor it. Serving one month's notice will not be sufficient. As Client X didn't hire you, they don't have any say on your notice period. Now you have two options: either serve two months or pay the salary in lieu of the balance notice period. You may also negotiate with the employer for a lesser notice, say 2 months or 1 month's pay. But it depends on the employer whether to accept or not.

All the interviews were conducted by the client's personnel only. The CTC discussion was with the contracted employer. If the client has been satisfied and released me, I could serve another 2 months' notice period. Even though I am willing to comply, they are not willing to consider it. The client X has provided me with an appreciation letter for my work, while the contracted employer Y is claiming that the client terminated me and that I need to pay a penalty for that. Witnessing this situation, I am unable to join a new company or afford my daily needs. Furthermore, I am puzzled as to why GST would apply to the employee and employer; this is my biggest doubt.

Hi, An employer can demand salary in lieu of a notice period, but GST is not applicable here.

As the Principal Employer is Company Y, client company appreciation or client relieving you will not make sense here. Since you were hired by Company Y, relieving will also be through them only.