Problems in relieving and settlement

Rajesh (Querist) 16 April 2014 This query is : Resolved
I was working with a software company and deployed in one of their client location.
I have attended interviews in both in my parent company and the client company. I was selected on 3rd Oct 2014. I have not received any mail regarding my selection or softcopy of my offer letter. I was forced to come on 4th Oct 2013 to finish the joining formalities in my parent company. But I was given the hardcopy of the offer letter and the appointment letter with 15th Oct 2013 as my joining date, since the client projects starts on that date.
I was also told by the HR that the joining date may be postponed if there is a delay from the client. But I have demanded the HR that I need my joining date to be 15th Oct 2013 and my payroll has to start by then. Since I had two more offers in hand and I had informed the same to HR, they have accepted to pay me from 15th Oct 2013. But the client project started only on 4th Nov 2013. I was recognized by the people in Client location for my work.
In Feb 2014, I got an offer in a startup company and I wanted to join there, since I thought it will help in my career growth. I have sent a resignation mail to my parent company on 10th Feb 2014 stating the same true reason. HR discussions were happened both over phone and in person. But I was firm in my decision to move out. I was first told that, it is not easy to relieve me before the project ends (Client project ends on June 2014). HR was demanding that the mandatory notice period is 60 days and if needed the company can extend it (It was in a hard tone). On my continuous requests, finally they agreed on 60 days of notice period and my last working date might be on 10th Apr 2014. But I have not received anything in written or mail.
During the mid of Mar 2014, they found a replacement and told me to give KT to that person. I was working on weekends also so that there will not be any delay in the task and project timeline (In my notice period). I have sent a mail with my client project leads in CC to my parent company also. I got some news from my colleagues that I will relieved by March end itself, since they got replacement. On 26th Mar 2014, I was enquiring about my last date to the project manager in Client location. He told that 1st Apr 2014 will be my last working day in Client location. Within 10minutes, HR from my parent company called me and told that 28th March 2014 (29th, 30th and 31st March are holidays) with be my last date and they are relieving me since they got a replacement. He asked me to come to parent company office for exiting formalities on 1st Apr 2014. Everything was over phone and nothing is in written or mail.
On 1st Apr 2014, I went to my parent company. HR gave me the forms to fill it. I already got a “NO DUES” form approved by the Client Company and submitted the same. HR told me then that I need to pay notice recovery for the 13 days, since I didn’t server my complete notice of 60days. Also the settlement will be made only on 25th Apr 2014.
I was surprised and argued with the HR saying that relieving me before the notice was the management’s decision and I will not pay any amount.
HR was stating the following during our discussion:
• I have to pay the notice recovery since I have not served the complete notice period. Management has taken the decision to relieve me only since I have resigned. He was asking why I have resigned before the project gets completed.
• Client don’t want to keep me since I have resigned. (He told that “No company will keep employee thinking that a person in notice will not work as expected. But I have worked for the client even during weekends and the client people know about my work well. I have forwarded the appreciation mails to my parent company also.)
• Also since I told them that I am going to join a new company.
• They paid me without any work when I joined. (From 15th Oct 2013 to 4th Nov 2013)
• If I don’t pay, there will be problem in relieving and for background verification for future.
• Also there will be some Audit problem and will be asked why the notice recovery is waived for the employee. They need to answer that.
I escalated to the HR Manger and she stated as follows:
• Why I have not asked the HR that why the company is relieving me before the actual date, when he called on 26th March 2013.
• It should be understood that if you didn’t serve the complete notice, you should pay the notice recovery amount.
• The replacement person is not billable to the client and the parent company is paying him when I was there (For 15days). That is a loss to the company because I have resigned.
• They are not going to force me to pay. But I won’t get my relieving letter.
After the arguments, HR told that he will talk to the finance and management and try to waive my notice recovery. He asked me to call on 10th Apr 2014 to get the update on this issue. But till today, he is telling that the management is not approving the waiver of notice recovery. I have not received my relieving letter also.
In Meanwhile, I have requested my new company and joined on 2nd Apr 2014. I have told my new company that I will be getting my relieving letter and settlement on 25th Apr 2014.
I am getting depressed because of their behavior even when I was very true and open to them. Please let me know what I need to do further.

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Kumar Doab (Expert) 16 April 2014
You and this company are located in which state?
The employee should always discuss in advance with elders in family, competent and experienced well wishers, lawyer /law firm before acting on his own.
Employee should become member of employees unions, Trade Unions and be properly informed.
You made the first mistake when you accepted appointment letter w.e.f. 15th Oct 2013 as joining date and then working without wages up to 4th Nov 2013. You had two more offers in hand and should have opted to work elsewhere.
You should demand in writing and company should pay you for this period.
The claim for unpaid wages can be lodged with Inspector under Payment of Wages Act, Inspector under (name of your state) Shops and Commercial Establishments Act.
Raise a demand to appointing authority, MD in writing under proper acknowledgment, on all points and do not remain stuck up with HR.
They are doing a fine job for themselves and their employer at your cost!
If you have tendered notice of resignation then you will choose the relieving date, not the HR or employer.
If you have mentioned notice period/last day in office in notice then it can not be preponed or postponed!

The weekly off days/holidays are paid days and your monthly wages have to be paid.

Their agreement with vendor/client has no binding on you. If you were assigned duty of KT then you have done it and wages to your have to be paid.
If company has relieved you before expiry of notice period then it has to pay notice pay to you and not you!
You must explain the situation to new employer preferably in writing and explain that you can not submit relieving letter till it is supplied to you by past employer and can’t submit it if it is not supplied by past employer.
Another point is that you must not restrict yourself to small/start up companies. If you are competent, skilled and your work is appreciated by everyone then aim to be with a company with good HR practices.

Relieving letter is issued after nothing is pending at the end of employee. You have performed KT, handed over the charge, and nothing is pending at your end.
The company and employer are under your debt due to unprofessional approach executed by its HR on behalf of employer.
There are many threads on similar queries that you may find relevant e.g;

http://www.lawyersclubindia.com/forum/Resignation-without-serving-notice-period-94178.asp#.U06PoUeBmXV