Hi, I have been working with a Hyderabad-based company for the past 17 months. Currently, I have been onsite for the past 10 months. In my appointment letter, the following was written:
Commitment Period:
i. As the company has invested in your training, you will be required to serve the company for a period of at least 30 months from the start date of this letter.
ii. In case you leave before the stipulated agreed commitment period of 30 months (ending on July 31st, 2014), you will be required to pay a penalty of Rs. 350,000 (Three lakhs Fifty Thousand only) or the salary equivalent to the preceding 12 months of your salary paid to you by XYZ company, whichever is higher.
I have not received any formal training; it was on-the-job training, and I was sent to the client side before my internship was over. Now, I have received a good offer since my current employer has included a lion's share of my CTC in bonus. I want to leave this organization on good terms. I have spoken to a couple of previous employees, and they have all mentioned that this company may not provide a relieving letter or experience certificate upon leaving; instead, they may treat you as absconding. I have a 2-month notice period after the 30 months mentioned above. I am willing to serve one month's notice and compensate for or buy out the second month. My current employer does not provide salary slips and only offers them upon a written request.
Is there any way I could obtain the relieving letter and experience certificate?
I have all other documents such as the joining letter, salary slips for the past 2 months, bank statements, and can forward my resignation letter to the new employer. Will this be sufficient?
Will going to the labor court to settle this issue be of any help to me?
Please reply.
Thanks,
Joey
From India, Pune
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Commitment Period:
i. As the company has invested in your training, you will be required to serve the company for a period of at least 30 months from the start date of this letter.
ii. In case you leave before the stipulated agreed commitment period of 30 months (ending on July 31st, 2014), you will be required to pay a penalty of Rs. 350,000 (Three lakhs Fifty Thousand only) or the salary equivalent to the preceding 12 months of your salary paid to you by XYZ company, whichever is higher.
I have not received any formal training; it was on-the-job training, and I was sent to the client side before my internship was over. Now, I have received a good offer since my current employer has included a lion's share of my CTC in bonus. I want to leave this organization on good terms. I have spoken to a couple of previous employees, and they have all mentioned that this company may not provide a relieving letter or experience certificate upon leaving; instead, they may treat you as absconding. I have a 2-month notice period after the 30 months mentioned above. I am willing to serve one month's notice and compensate for or buy out the second month. My current employer does not provide salary slips and only offers them upon a written request.
Is there any way I could obtain the relieving letter and experience certificate?
I have all other documents such as the joining letter, salary slips for the past 2 months, bank statements, and can forward my resignation letter to the new employer. Will this be sufficient?
Will going to the labor court to settle this issue be of any help to me?
Please reply.
Thanks,
Joey
From India, Pune
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Let us discuss the issue, point-wise:
Commitment to the Company
The company wanted you to work for a minimum period of 30 months from your date of joining (DOJ). You agreed and accepted this by signing the appointment letter, as it was your priority to secure a job at that time. Therefore, in my view, you have a moral responsibility to stay with the company for at least the agreed period.
Training Expenses and Legal Considerations
Expenses towards training are generally included by employers to legally justify the penalty clause. However, typically (with exceptions), no training except on-the-job training (OJT) or induction training is provided to new entrants. In my opinion, pursuing legal action will not resolve your problem as it can be a lengthy process.
Maintaining Good Relations with Your Employer
Since you wish to maintain good relations with your employer, you may speak to your HR representative instead of discussing it with friends. Request to reduce the penalty clause amount, pay the same, serve the required notice period, and obtain the relieving letter, etc. However, I would like to reiterate my stance as mentioned in the first paragraph.
Joining a New Company
It is up to the HR department of your new company to decide whether to allow you to join based on your submission of a copy of the resignation letter, bank statement, and other documents. However, in my view, very few organizations allow joining without a relieving letter or a copy of resignation acceptance.
Regards.
From India, Jaipur
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9Commitment to the Company
The company wanted you to work for a minimum period of 30 months from your date of joining (DOJ). You agreed and accepted this by signing the appointment letter, as it was your priority to secure a job at that time. Therefore, in my view, you have a moral responsibility to stay with the company for at least the agreed period.
Training Expenses and Legal Considerations
Expenses towards training are generally included by employers to legally justify the penalty clause. However, typically (with exceptions), no training except on-the-job training (OJT) or induction training is provided to new entrants. In my opinion, pursuing legal action will not resolve your problem as it can be a lengthy process.
Maintaining Good Relations with Your Employer
Since you wish to maintain good relations with your employer, you may speak to your HR representative instead of discussing it with friends. Request to reduce the penalty clause amount, pay the same, serve the required notice period, and obtain the relieving letter, etc. However, I would like to reiterate my stance as mentioned in the first paragraph.
Joining a New Company
It is up to the HR department of your new company to decide whether to allow you to join based on your submission of a copy of the resignation letter, bank statement, and other documents. However, in my view, very few organizations allow joining without a relieving letter or a copy of resignation acceptance.
Regards.
From India, Jaipur
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Relieving & Experience Letter.doc