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Mohanish Mahajan (senior system engineer)     21 June 2014

Need relieving letter have resigned

Hi,

 

I am in an urgent need of some legal help.

I am currently working for a CMM level5 software service company.

I had resigned on 11th June and as I am going for higher studies abroad had asked for an early release from the company on July 4th.

However my Managers and HR's are not approving my resignation and are not allowing me to relieve by 4th July

I have a notice period of 3 months.

I am ready to pay the salary in lieu of my notice period and have communicated the same to my managers and HR via mail but I am  not getting response from them.

Upon a verbal communication with my managers they are straight forwarding refusing to release me stating that they are not getting replacement for me. However they On the mail they are only saying that "they cannot compromise on my notice period and I need to complete full 3 months"

 

PLease advice as to what legal options do I have here.

Thanks and Regards



Learning

 5 Replies

Kumar Doab (FIN)     21 June 2014

>>> Notice period of 3 months may not necessarily be applicable in your case.

 

Resignation can be without permission and notice.

 

Your manager and HR are not your employer and may not have any power to accept or reject the resignation, until or unless such power is granted by Board of the company.

 

Hence represent to appointing authority, MD in writing under proper acknowledgment.

 

If possible suggest some candidates internal/external and help to find your replacement and do the KT.

 

 

 

>>> What is this CMM lEvel5 company/establishment registered as: Commercial, Industrial, Small Enterprise?

 

It should have displayed its registration Certificate at a conspicuous place e.g near entrance/on notice board! Or You have to find out on your own.

 

How many employees are employed in it?           

 

What is your designation and nature of duties?  

 

Has your service been confirmed in writing?        

 

 

Do you have proper acknowledgment of notice of resignation?

 

You are in which state?

Redg. office of the company is in which state/

 

This information shall help you, hence post it.

 

 

 

>>> Notice period, Notice pay in lieu of notice period is part of service conditions and does not depend upon T&C inserted by employer in appointment letter drafted by it  or any other private agreement that employer has signed with employee, alone.

Service conditions are governed by statues, instrument of law, enactments applicable to the establishment.

 

Your company may most probably be covered by (Name of the state) Shops and Commercial Establishments Act that was enacted to govern service conditions in such establishments. Notice period and notice pay in lieu of it is stated in this enactment.

 

There are many threads on it that you may find relevant and can pick up points that are useful to you e.g:

 

https://www.lawyersclubindia.com/forum/Notice-period-102337.asp#.U51N3pSSwb8

https://www.lawyersclubindia.com/forum/Whether-notice-period-has-to-be-given-during-probation-91808.asp#.UwDFP0eBmXU

https://www.lawyersclubindia.com/experts/Employer-not-giving-relieving-letter-476871.asp#.U51fPpSSwb8

 

https://www.lawyersclubindia.com/forum/3-notice-period-relaxation-advice-103873.asp#.U6Uei5SSwb8

https://www.lawyersclubindia.com/forum/Notice-period-104062.asp#.U6WB45SSwb8

 

 

It has been mentioned in one of threads that Chief Inspector under this Act stated that notice period stated in the Act shall prevail upon notice period stated in appointment letter.

https://www.lawyersclubindia.com/forum/Employer-not-relieving-employee-contt-89308.asp#.UkP5C9KAqWM

Your lawyer may ask you a set of structured questions and can opine that you would be covered as  ‘Workman’ as in ID Act, ‘Employee’ as in (Name of the State) Shops and Commercial Establishments ACT or not!

Designation alone does not decide it.

If you are not covered as ‘Workman’ as in ID Act, ‘Employee’ as in (Name of the State) Shops and Commercial Establishments ACT, LABOR LAWS THEN THE SERVICE CONDITIONS APPLICABLE TO YOU MIGHT BE AS PER SERVICE RULES AND REGULATIONS OF THE ESTABLSIHMENT.

USUALLY IT IS STATED IN APPOINTMENT LETTER THAT SERVICE CODNTIONS SHALL BE GOVERNED BY HR POLICY/ SERVICE RULES AND REGULATIONS………………………ALTHOUGH THESE ARE NORMALLY NOT SUPPLIED ALONG WITH APPOINTMENT LETTER AND ILL INFORMED EMPLOYEES SIGN ACCEPTANCE OF THE APPOINTMENT LETETR WITHOUT AVAILING HR POLICY/ SERVICE RULES AND REGULATIONS REFRENCE OF WHICH IS MADE IN APPOINTMENT LETER AS THAT THESE SHALL GOVERN SERVICE CODNITIONS.

YOU MAY DOWNLOAD THE HR POLICY/ SERVICE RULES AND REGULATIONS………………………….AS APPLICABLE ON DATE OF JOINING, AND if AMNEDED THEREAFTER…………………………

 

 

Mohanish Mahajan (senior system engineer)     21 June 2014

Hi Kumar,

Thanks a lot for your Quick reponse.

As separation process set by the company I have to submit my resignation on a web based application in which I need to enter my First Level approver as my immediate Manager and second level approver as the Delivery Manager. Also the form needs to be approved by the HR and moved to Project Manager and Delivery Manager for Approval. However in my case HR has also not moved the form to Manager and Delivery Manager which for other cases have been done on the same day they submited resignation. But its been two seeks since I submitted resignation but the form has not been moved. Upon asking HR says its Delivery call.

However on the day I submitted resignation via application I also sent a mail loopoing in my Manager, Delivery Manager and HR updating about my request to grant release by 4th July and that I am ready to pay Salary in lieu of the notice period.

Please advice if I should go ahead in sending a mail to MD informing about my resignation.

PFB the answers to above questions

What is this CMM lEvel5 company/establishment registered as: Commercial, Industrial, Small Enterprise- It was initially established intially as a Consultants limited under Indian Companies act 1956, then became XXXX private limited and then with the IPO became XXX limited. Currently its XXX limited listed on the board with nothing else mentioned. Hope that helped. Please let me know if this helped or if you require more info on it

How many employees are employed in it? over 1,50,000

What is your designation and nature of duties- My Designation is Senior Systems engineer and my nature of Duties is Daily production support for any issues reported.

Has your service been confirmed in writing? Yes

Do you have proper acknowledgment of notice of resignation? I have a system generated mail sent in reponse to my resignation submitted over application. Please let me know if I need to do anything else on this part.

You are in which state? Maharashtra

Redg. office of the company is in which state: Karnataka.

Please if you can let me know which states labor laws will be applicable here. Also does that state has a minimum notice period of 1 month as per labor laws. I am flexible with extending for 3-4 days more in case its absolutely neessary to fulfill the minimum requirement of 1 month as per states labor laws.

Thanks and Regards

Kumar Doab (FIN)     21 June 2014

Resignation is a personal matter and can be (rather should be ) communicated from personal email id and preferably should be addressed to appointing authority/MD and submitted by letter thru redg. post.

The access to official email id may be blocked anytime…………………………….hence download the screenshots/printouts from resignation tool and also all data e.g. Tgt Vs perf, KRA’s, appreciation/commandments/appraisal  etc……………..

By submitting thru Resignation Tool you have granted intervention to Line Manager/HR and as per employer’s policy for them, they are defending their interest.

Therefore if feel it deemed as fit you may submit notice of resignation citing notice of resignation with notice of ……………………days, as per clause number……………………………..in appointment letter dated…………………..submitted on dated……………………….in Resignation Tool and reminded by email dated………………………….and emphasize that NO Tasks are pending at your end and notice pay as per applicable enactments be adjusted in correct FnF statement and same be supplied to you for verification and acceptance by you thru Redg. post……………and demand all docs and payouts due to you as cited in threads mentioned above and that to whom you should handover the charge…………………………..and request to make the arrangements so that you are relieved on dated………………………….as per notice tendered by you and seek their intervention and relief from them.

You may attach the email confirmation of having received your notice of resignation.

You may cite the difficulties being faced by you  due to Non Action by Line Manager/HR etc……………and representations made by you in office on dated………………………..to Mr/Ms……………designation/dept………………..and brief minutes of discussion……………

It is none of business of the employee that if it is ‘delivery call’ or some other call.

The notice has started from the day it is tendered by employee………………………….and notice period shall expire on dated………………………..as chosen by employee.

The effective date of resignation as per notice of resignation can not be preponed or postponed by employer and notice of resignation can not be accepted before it!

Don’t remain entangled with Line Managers/HR!

YOU MAY DOWNLOAD THE HR POLICY/ SERVICE RULES AND REGULATIONS………………………….AS APPLICABLE ON DATE OF JOINING, AND IF AMNEDED THEREAFTER…………………………or demand printed version of it in writing from appointing authority.

 

Is it stated in appointment letter issued to you that employer and employee can tender notice pay in lieu of notice period?

Since how long (months) you are working in this company?

Does the company have an office at your location in Maharashtra or are you attached-reporting to office in Maharashtra? How many employees are employed in Maharashtra?

This office should have been registered under  Bombay Shops and Commercial establishments Act. Such companies are covered by Shops and Commercial establishments Act………………………..and registration certificate should be displayed………………………..You may confirm it.

You may go thru Bombay Shops and Commercial establishments Act that is so employee friendly:

Sec:2(4,6,7,22,30,..), 7,13,14,18,35,37,38 and 38-B in particular………………………as per which standing Orders shall be applicable and if standing orders are not certified Model Standing orders shall apply……………..43,49,51,55,58,62,63,66 ………………………the max. notice period is 1 month………………….69

{ You may also include the name of Employer/Manager as inserted in registration certificate)

And

Bombay Shops and Commercial establishments Rules………………..

And

Model Standing Orders:13……………… the max. notice period is 1 month, 15, 16………….. {NOTE. - There is a provision under  this  Act for issuing a service certificate at the time of  dismissal, discharge or retirement and every person is entitled to take such certificate.}, 17, 18………….

 

IT/ITeS employees have formed unions and in Maharashtra in addition to Trade Unions Shiv Sena also supported the cause……………………..You may go thru Threads referred to you.

 

You may AS AP consult a local Labor Consultant/Service Lawyer with all docs on record, give inputs in person, and spend quality time with your lawyer to understand the merits.

 

It shall be appropriate if all of your representations are drafted by your lawyer to build written record and suit your long term interest.

Mohanish Mahajan (senior system engineer)     22 June 2014

Hi Kumar,

Thanks a lot for your valuable advice!

Surely will proceed as you mentioned above.


PFB response to other questions. PLease if you can advice as
to how to proceed forward.

Is it stated in appointment letter issued to you that employer and employee can tender notice pay in lieu of notice period?
This is what was stated in the initial offer letter issues prior to joining about separation
"
 During the probation period, if your performance is found to be unsatisfactory or if it does not meet the
prescribed criteria, your training / employment can be terminated by the Company with one month notice or
salary thereof. On confirmation as a regular employee, you will be required to give three month’s notice or
salary thereof in case you decide to leave our services. In the event of you having any incomplete assignment,
the Company will have the discretion to relieve you only at the end of the three month’s notice period.
Similarly, the Company can terminate your services by giving you three month’s notice or salary thereof. The
Company may terminate your services immediately on disciplinary grounds."

However upon my confirmation I was issued another confirmation letter which stated the below as for notice period

"As you must be aware, the confirmation of your services results in a change in certain terms of your employment.
As a regular employee, you will be required to give three month's notice or salary thereof in case you decide to
leave our services subject to the Company's discretion; in the event of you having any incomplete assignment, the
Company will have the discretion to relieve you only at the end of the three-month notice period. Similarly, the
Company can terminate your services by giving three month's notice or salary thereof"


Also the separation policy which has been posted on the company's intranet portal states the following
"Confirmed Employees: All confirmed employees have to serve a Notice Period of three months or pay salary in lieu of the Notice Period thereof.
ï‚· An employee can initiate the separation process by raising a resignation request on the e-Separation system. Any request of resignation,
verbal or over email will not be considered as a proper communication of resignation and the Company will not act upon such notice.
ï‚· It is mandatory for all employees to serve the Notice Period as defined in their employment contract which may be extended based on mutual agreement
between the Company and the employee. Any reduction in the defined Notice Period is an exception, solely at the discretion of the Company.
Waiver of Notice period and payment of Salary in lieu of Notice Period
ï‚· The Notice Period and/or Salary in lieu of Notice Period (complete / partial) can be waived entirely at the discretion of the Company with necessary approval
from the respective Delivery Manager or from an employee in an equivalent Role.
ï‚· Any employee with any incomplete assignment(s) has to compulsorily serve the complete notice period. Relieving such an employee prior to completion of their entire
notice period, is solely at the discretion of the Company and any decision of the Company on the release date and incomplete assignment is final."

Please if you can advice if we have any legal standing on the above company policy and how to proceed forward.
Also I would like to add here that I resigned on 11th June and submitted my last working day as 4th July which is less than a month.
Is it a good Idea if I continue till 10th July so that I fulfill 30days notice period criteria as per labor laws or is it fine if I stick to 4th July.
Do the IT services company in Maharashtra still enjoy a Blanket ban from the Standing Orders or the labor laws?

Since how long (months) you are working in this company?- 44 months

Does the company have an office at your location in Maharashtra or are you attached-reporting to office in Maharashtra? Yes the company has its permanent office at
location from where I am working in Maharashtra

How many employees are employed in Maharashtra?- Over 20,000

PLease if you can guide

Thanks and Regards
 

Kumar Doab (FIN)     22 June 2014

The company does not recognize resignation by email. The company has not declined to accept resignation by signed letter thru  Redg. Post and company can not.

 

If there no incomplete/unfinished Tasks then: What is the issue?

You can state that there are no unfinished tasks at your end.

 

In case due to unfinished tasks employer is likely to suffer financial or some other loss it may emphasize upon employee to serve full notice period………………………………….It can not be beyond that………………………….Beyond notice period NO employer can force employee to serve……………………..without concurrence of employee……………………..

 

Assuming that employer claims there are unfinished tasks…………………..then employer has to announce what are these………………………………and the loss it can/has suffered………………………..and then it has to prove also……………….the loss and a numerical figure attributable to it………………………say liquidated damages…………….. and then once again may have to prove it.

 

Has the company stated that there are unfinished tasks at your end?

 

Have you stated there are no unfinished tasks at your end?

 

Have you sated that 30 days by all counts is sufficient for you to handover the charge/complete all tasks????????????

 

 30 days by all counts is sufficient for employer to put his house in order.

 

The T&C in contract of employment should be equitable OR THESE CAN BE EASILY TERMED ARBITRARY.

It is not stated in offer letter/confirmation letter/Separation policy that employee can reject to accept notice pay in lieu of notice period if employer has initiated termination by notice of termination……………………….. and claim to serve full notice period and earn full wages for 90 days or by claiming that he/she has not firmed up his next venture………………

 

While company has stated that it can reject to accept notice pay in lieu of notice period and acceptance of notice pay in lieu of notice period is its discretion …………………………………if there are incomplete tasks at the end of employee.

 

The waiver of notice pay in lieu of notice period can be at the discretion of employer if employee makes a request for it……………………………….OTHERWISE IF EMPLOYEE HAS TENDERED NOTICE PERIOD OF 90 DAYS THE EMPLOYER CAN NOT ACCEPT RESIGNATION BEFORE 90 DAYS.EMPLOYEE C AN WITHDRAW RESIGNATION BEFORE 90 DAYS AND EVEN AFTER THAT BEFORE THE RESIGNATION IS ACCEPTED.

 

Does this company have a policy that all incoming employees shall be provided with joining period of 30 days while all outgoing/exiting employees shall be made to give 90 days notice period?

 

Employee shall be at loss since all future/next employers shall not wait for 90 days………………and you shall loose the offer.

 

Why are you awarding the next employer by being at personal loss? Did the next employer buy out the notice period without any conditions? Did the next employer agree in writing to absorb you without copy of acceptance of resignation, relieving letter, service certificate?

 

The next employer may also have a policy that all incoming employees shall be provided with joining period of 30 days while all outgoing/exiting employees shall be made to give 90 days notice period?



Are you aware that employer’s in AP formed a unions and decided that notice period shall be increased to 90 days and all employee’s shall necessarily have to serve 90 days notice period?

 

If yes why can’t community of employers form unions to counter the employers and thus defend their interest!!!!

 

 

 

IT SHALL BE MATTER OF UTTER SHAME IF ALL STATES PROVIDE BLANKET EXEMPTION FROM PROVISIONS OF STANDING ORDERS (INDUTRIAL EMPLOYMENT STANDING OREDERS ACT ) TO IT/ITeS COMPANIES………………………………………….

 

It is need of the time to unite and fight for the rights.

The more the numbers of employees in your trade remains away form unions more you shall suffer.

 

 DESIGNATION ALONE DOES NOT DECIDE A WORKER SHALL BE COVERED AS ‘WORKMAN’ AS IN ID ACT,’EMPLOYEE’ AS IN Shops and Commercial Establishments Act………………………

If you are covered by Bombay Shops and Commercial Establishments Act then you must have noted that Max. notice period is 30 days……………

 

 

Are you aware that employees can form ‘Works Committee’ and it is an authority and President /Chairman is on rotation from employees/employer and it has equal number of employees from employer/employees?

 

The Industrial Disputes Act, 1947

CHAPTER II: AUTHORITIES UNDER THIS ACT

3. Works Committee

 

The employee’s can negotiate their service conditions with employers.

 For any change in service conditions a prior notice of 21 days has to be given as per sec9A…….

 

Employee’s are a huge vote bank that no political party or govt. can ignore.

In other threads you must have noted that IT/ITeS employee’s formed unions and Shiv Sena formed first union of IT employees in Maharashtra.

 

You may AS AP consult a local Labor Consultant/Service Lawyer with all docs on record, give inputs in person, and spend quality time with your lawyer to understand the merits.

 

It shall be appropriate if all of your representations are drafted by your lawyer to build written record and suit your long term interest.

 

 


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