Already served 10 days out of 15 days Notice period, but have still not got LWD.

Company A has hired me on contract to fill a C2H role for Company B. My payroll company is Company A. I submitted my resignation to Company A ten days ago. However, I have not yet received my Last Working Day (LWD) from Company A as they claim it is dependent on Company B. With only five days remaining in the notice period under Company A, the offer letter states a notice period of 15 days without mentioning that the LWD is contingent on Company B's decision. Until the LWD is provided by Company B, they are unable to release me.

I am scheduled to relocate to a different city and commence a new role at Company C on the 6th of May.

In this situation, what options does an employee have?

Responsibility for Relieving

The Company B is only the principal employer and cannot make a decision about your relieving. It is the responsibility of your employer, Company A, to handle it. However, you can informally inquire with your reporting officer in Company B about your relieving. After 15 days, you can personally hand over the charges and complete the handover.

So if they do not give me an LWD, I can submit my laptop and ID card for Company B (principal employer) and then go to Company A's office and inform them of the same via an email. If I do this, will they send me an exit email and relieving documents along with FnF? Will they verify my employment when the BGV is done from my new employer?

I am worried that they should not mess with my BGV verification, and if they do not provide me with relieving documents, what happens then?

Background Verification in Complex Employment Arrangements

What kind of background verification can be done when the company itself is doing wrong? Who is your employer? Company A. Then who should relieve you? Company A only. If, in order to leave your employer, you need the permission of another person, i.e., Company B, that itself shows that the contract is just a sham. If that is the case, you should be taking permission from the officers of Company B only for leave, right? Therefore, there is no relevance for any background verification in this kind of arrangement.

Unfortunately, your relieving letter, F&F, and BVG will always depend on the goodwill of your employer. This is not the USA where you can sue them for giving a bad review, and therefore, they are scared to do anything other than verify the working period.

How much of a difference it makes in your new company, that I can't say because I do not know them. You need to take that call. You can speak to HR there, tell them you have officially resigned (I hope you have a signed letter or an email confirmation that you have resigned) and what to do if they do not give you a relieving letter.

You need to decide on your action keeping in mind what is best for you, irrespective of how illegal the action of the employer is.

As proof, I have:

1) Offer letter from Company A.
2) Payslips from Company A.
3) EPFO statement showing that PF was deposited every month from Company A.
4) EPFO service history listing the date I started working at Company A.
5) Bank statement showing salary credited from Company A.
6) Resignation email and HR's reply agreeing that the notice period is 15 days.
7) Entire email chain where I asked for LWD since Day 1 of the notice period and the response I received while waiting for LWD from Company B.
8) Photo of ID cards from Company A and Company B.

I have already submitted the offer letter and salary slips to Company C for BGV.

Now, how can they lie in BGV saying I didn’t work? I have proof of employment, and secondly, they might say I didn’t serve the notice period or absconded; that also I can contest with the resignation email and email chain that show I served a notice period of 15 days.

Hopefully, Company C can understand I have not lied and also served the full notice period, but it’s Company A who is committing fraud and a scam.

As I already mentioned, the best approach is to talk to HR in your new company and inform them of the situation. However, this issue may arise in future jobs as well. You have enough proof that you worked there and offered to complete the notice period. Unfortunately, there is no real proof that you completed it. Try to collect some evidence. During background verification (BGV), they may not deny that you worked there but might say you absconded, were bad at work, or were removed due to bad behavior. It depends on how professional the company is. It's possible that the HR personnel will be long gone, and no one will know of you, so they will simply look at records. But we are only speculating here.

The biggest problem with refuting a bad BGV

You can only refute a bad BGV if the company provides all details. If they simply say you failed BGV and are being terminated, you don't get a chance to explain. Remember that always. I am not suggesting you bow down to a bad company, just advising you to be aware of the possibility so you can prepare for the responses.

I would inform HR of all prospective employers that you had a problem with this particular contractor employer.

If you have email communications regarding your last working day, that would prove that you were an employee of Company A working for Company B. The background verification is just to observe whether the employee has worked in a particular organization or not, and if they worked, whether they were a good or bad employee. If a bad employee submits their resignation, naturally, the employer will ask them to leave immediately. The maximum the company would do is ask them to serve the notice period. A company will never ask a bad employee to continue beyond the notice period. However, a good employee who contributes to the company's goals will not be allowed to leave easily. A good employee will always be employable. If they get a good opportunity and leave the company after completing the required notice period, how can the employer give negative feedback? Even if a company provides negative feedback, how can another company believe it to be correct?

Therefore, if Company C is convinced that Company B is not relieving you, why should you wait? Complete the notice period and just hand over the necessary items. Take a photocopy of the ID card if required. If your background verification agency sends a report that you were not a good employee, simply ask, "Then why didn't that employer relieve me when I submitted my resignation? Obviously, if I were a bad employee, they should have accepted my resignation immediately and relieved me."

Update on Resignation and Notice Period

There is one major update. I had conversations with both Company A and Company B today.

Company A's Response

First, HR from Company A told me they are aware that my joining date is the 6th of May and will definitely get me released before that.

Company B's Response

Then the Manager from Company B is saying that I have to serve a minimum notice period of 30 days since I officially submitted my resignation on April 16; therefore, they can release me on May 16.

Current Situation

I called HR from Company A, and she informed me that they have received an email from Company B stating that my resignation is accepted and have asked Company B to initiate the exit process. However, they have not shared the Last Working Day (LWD) yet. She reassured me not to worry and provided me with assurance.

This is such a critical and weird situation. I am a direct employee of Company A, and their official notice period is 15 days. Why is Company B even asking for a notice period of 30 days?

God knows what will happen; will I even get a proper release from the organization?

You have a commitment only with Company A. As per the contract of employment, you are expected to serve only a 15-day notice. That will satisfy the legal requirements as well. As I said earlier, if Company B is not willing to relieve you, it should be taken as a positive aspect of your candidacy and not a negative one.

One More Update

I spoke with the Hiring Manager of the new Company C. I also forwarded the entire email chain from Company A, which includes my formal resignation and Company A's agreement on the 15-day notice period. I submitted my resignation on April 16th but also mentioned that the Last Working Day (LWD) is pending from Company B.

Fedex HR has informed me that my Background Verification (BGV) is cleared, and I can now join them directly.

When I inquired about not having a proper exit mail with the Last Working Day (LWD), she mentioned that the company agreed to the 15-day notice period, considering my formal resignation on April 16th. Therefore, it should not be an issue for the new Company C.

As a result, I will be joining Company C on May 6th.

My next challenge will be regarding obtaining the Relieving Letter and Full and Final Settlement (FnF).

I will keep you updated on any further developments.