Looking for advise from community on the legal remedies that may be available (as last resort) where there is a disagreement with employer, on exit formalities.
Employer had been given notice a month back about the intent to quit the current job. Employer is a startup who is financially and business-prospects wise is far from being in the pink of health.
Several employees have quit the organization, but myself being one of the remaining key senior executives, employer is threatening legal action, for non fulfillment of 3 months of notice period, or at least witholding relieving letter.
This, even though I am willing to pay to the organization, balance of renumeration for the shortfall of notice. However, present contract doesn't have such a provision mentioned explicitly.
Employer is citing absence of such clause and not letting go. The environment at work is extremely stressful, hostile and I have no wish to continue here.
My key concern is about getting the relieving letter and ensuring that IT deductions are submitted properly (s.t. next year Form-16 can be generated).
From India, Bengaluru
Employer had been given notice a month back about the intent to quit the current job. Employer is a startup who is financially and business-prospects wise is far from being in the pink of health.
Several employees have quit the organization, but myself being one of the remaining key senior executives, employer is threatening legal action, for non fulfillment of 3 months of notice period, or at least witholding relieving letter.
This, even though I am willing to pay to the organization, balance of renumeration for the shortfall of notice. However, present contract doesn't have such a provision mentioned explicitly.
Employer is citing absence of such clause and not letting go. The environment at work is extremely stressful, hostile and I have no wish to continue here.
My key concern is about getting the relieving letter and ensuring that IT deductions are submitted properly (s.t. next year Form-16 can be generated).
From India, Bengaluru
Another important piece of information to add here is that, I am willing to give another 2-3 weeks to this company, but if I were to serve the entire duration of 3 months of notice period, I would lose the other offer I have in hand now. At my age and experience level, and in prevailing market circumstances, it would be extremely difficult to have such an offer again.
From India, Bengaluru
From India, Bengaluru
It is important what is written in your appointment letter / agreement accepted by you. If it is three month's notice period, with no provision of paying off the shortfall in notice period, I think, you are obliged to serve the notice period. Relieving letter is issued only when an employee is formally relieved / separated from the company. If you stop attending office, you can be treated as unauthorized absentee or an "absconding" employee.
The company's financial health will have no bearing on the case, if they are paying your salary in reasonable time. If they are not paying salary, then you have a case. You can demand to be relieved, as the company is not keeping its part of the promise.
Avoid going to court, if you can. If the word goes around, it may be detrimental to you. Employers do not like to engage people who go to courts for such reasons.
From Qatar, Doha
3The company's financial health will have no bearing on the case, if they are paying your salary in reasonable time. If they are not paying salary, then you have a case. You can demand to be relieved, as the company is not keeping its part of the promise.
Avoid going to court, if you can. If the word goes around, it may be detrimental to you. Employers do not like to engage people who go to courts for such reasons.
From Qatar, Doha
Dear KattHR,
Your post needs further clarification. The paragraph-wise replies are as below:
Employer had been given notice a month back about the intent to quit the current job.
Comments: - "There is nothing like notice about intent". As an employee, you need to subject letter of resignation. Did you do that?
Employer is citing absence of such clause and not letting go. The environment at work is extremely stressful, hostile and I have no wish to continue here.
Comments: - What exactly is the clause of separation in your appointment letter? What is the wording?
My key concern is about getting the relieving letter and ensuring that IT deductions are submitted properly (s.t. next year Form-16 can be generated).
Comments: - If the employer has deducted TDS, and if the TDS is deposited too then it will be reflected in AS-26. You need not worry about Form 16. You can file IT return based on AS-26.
Kindly note that the current agreement, signed between the MD/CEO and myself, is done on Company Letter-head, and not on legal bond-paper.
Comments: - When employers issue communication to the employees on company's letterhead, it is valid and legally accepted communication in court of law. This is not an agreement as such. Agreements are done on the bond paper.
Thanks,
Dinesh Divekar
From India, Bangalore
Your post needs further clarification. The paragraph-wise replies are as below:
Employer had been given notice a month back about the intent to quit the current job.
Comments: - "There is nothing like notice about intent". As an employee, you need to subject letter of resignation. Did you do that?
Employer is citing absence of such clause and not letting go. The environment at work is extremely stressful, hostile and I have no wish to continue here.
Comments: - What exactly is the clause of separation in your appointment letter? What is the wording?
My key concern is about getting the relieving letter and ensuring that IT deductions are submitted properly (s.t. next year Form-16 can be generated).
Comments: - If the employer has deducted TDS, and if the TDS is deposited too then it will be reflected in AS-26. You need not worry about Form 16. You can file IT return based on AS-26.
Kindly note that the current agreement, signed between the MD/CEO and myself, is done on Company Letter-head, and not on legal bond-paper.
Comments: - When employers issue communication to the employees on company's letterhead, it is valid and legally accepted communication in court of law. This is not an agreement as such. Agreements are done on the bond paper.
Thanks,
Dinesh Divekar
From India, Bangalore
Thank you for the answers and appreciate your views. Could you also please shed light on the legality of having three months of notice period, while company seems to reserve the right unfairly to terminate the services of employee at a month's notice. They can cook up a cock & bull story about disciplinary action and use the ruse to terminate quickly, as it feel the need, and when it feels the need.
From India, Bengaluru
From India, Bengaluru
Dear KattHR,
While designing the terms of separation, both the sides should have equal terms. One party cannot have 30 days and 90 days the other.
Secondly, termination from employment is the punishment of the highest kind. Therefore, it needs to be preceded by the domestic enquiry. In the enquiry, a fair chance needs to be given to the accused and it should be ensured that the enquiry is not vitiated in any manner. If the principles of natural justice are followed to the core, the dismissal from employment is not that easy.
Since you are a senior person, I recommend you not to follow a route of legal means. If labour laws were to be that strong, then about quarter of companies could shut down. It is the slowest moving judiciary that favours the employers. Bark is worse than bite is the age old adage. In Indian judiciary, the wait for verdict is far more than excruciating than the verdict itself. It appears that you have not visited the labour court any time. You may have a visit there sometime to understand how do they function anachronistically!
Therefore, you may sit with your employer and negotiate for the notice period. Be persuasive at your best but if he remains intransigent, then to scare the employer, you may tell that you will be forced to make a complaint to the Labour Officer (LO). Since you are senior, LO may not entertain your complaint, however, your employer's company could come under their scanner after your complaint.
Thanks,
Dinesh Divekar
From India, Bangalore
While designing the terms of separation, both the sides should have equal terms. One party cannot have 30 days and 90 days the other.
Secondly, termination from employment is the punishment of the highest kind. Therefore, it needs to be preceded by the domestic enquiry. In the enquiry, a fair chance needs to be given to the accused and it should be ensured that the enquiry is not vitiated in any manner. If the principles of natural justice are followed to the core, the dismissal from employment is not that easy.
Since you are a senior person, I recommend you not to follow a route of legal means. If labour laws were to be that strong, then about quarter of companies could shut down. It is the slowest moving judiciary that favours the employers. Bark is worse than bite is the age old adage. In Indian judiciary, the wait for verdict is far more than excruciating than the verdict itself. It appears that you have not visited the labour court any time. You may have a visit there sometime to understand how do they function anachronistically!
Therefore, you may sit with your employer and negotiate for the notice period. Be persuasive at your best but if he remains intransigent, then to scare the employer, you may tell that you will be forced to make a complaint to the Labour Officer (LO). Since you are senior, LO may not entertain your complaint, however, your employer's company could come under their scanner after your complaint.
Thanks,
Dinesh Divekar
From India, Bangalore
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Resignation cum relieving letter.doc