Can We Legally Withhold a Relieving Letter Due to Employee's Gossiping?

Hi,

We have a policy of a one-month notice period for resigning from the company. If a short notice period is given, they have to pay one month's salary to the company. One of our employees has resigned and is willing to give one month's salary. However, my management does not want to accept the money from him because they do not want to complete his relieving formalities. This decision is due to the fact that he has a tendency to gossip and spread rumors within the company. He has been with us for two years, but his recent behavior has caused concern.

We would like to know if there are any legal obligations if we choose not to provide him with a relieving letter. Kindly advise.

S. Rajeswari

Dear Rajeshwari,

What are you going to do with the guy who is a loose talker and has resigned from the services of the company? Also, why should you retain him if he is not going to contribute his knowledge for the growth of the organization?

If he is ready to refund the notice period money, please accept the same and relieve him. Otherwise, he will become a nuisance to others and will spoil the morale and environment of the company.

With regards,

L. Kumar

Hi Kumar,

Thank you for your kind words. My management wants to punish him by not giving his relieving letter. I would like to know if there are any chances that he can take any legal action against the company. Please advise.

Thank you,
S. Rajeswari

Dear Rajeshwari,

Yes, there are chances if he approaches the labor court and a lawyer. He may serve notice to the company that, because of not issuing his relieving letter, he may claim the monetary loss sustained by him. Since the obligations of both the employer and employee have been mentioned in the appointment letter, and if the employee is ready to pay the notice period money, it is my advice to please accept and issue the relieving letter to him. Otherwise, if he approaches legally, he may get his relieving letter without paying the notice period money, which please make a note of.

L. Kumar

Hi Rajeswari,

Since that guy is a loose talker, and if the company and yourself want to punish him, find a way where he has talked wrongly about the company. Take into account his performance during the last month, timings, leaves, and terminate him on those grounds. Let him repent for his actions and provide him with the money for the notice period. After the notice period, relieve him of his formalities.

Though it may be challenging to digest, the approach you should take is to call him at the end of the day and inform him that he has been terminated based on these grounds. Obtain a signed copy from him. If he refuses to take it, send him a registered post with acknowledgment. This will serve as a lesson for others in the company who might engage in similar behavior. Send an email stating that he has been relieved from the company and wish him well.

This is my suggestion.

Regards,
Vls