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C P Sridhar (Director)     10 December 2010

Releving letter from a compnay

An employee has signed an agreement to work with a company for 5 years. Company sends him abraod for training. 

He does not complete the agreed term and wants to leave. He is insisting on a releving letter.

Can we give a releving letter subject to settlement of eveything except non fulfilment of agreement period.

If we releive him, does our agreement become invaild? Can we still taje legal action against him?

Are we supposed to give releving letter as a matter of right of the employee ?

What is the legal validity of such employee-emplyer service related agreements?

Regards

Sridhar  



Learning

 7 Replies

SALA SATEESH (lawyer)     10 December 2010

Dear sir,

this query needs to substantiate with the executed documents of employment agreement.

as it is to critically examined by studying the clause of agreement hence kindly furnish in detail.

Regards,

S.Sateesh

SALA SATEESH (lawyer)     10 December 2010

Dear sir,

this query needs to substantiate with the executed documents of employment agreement.

as it is to critically examined by studying the clause of agreement hence kindly furnish in detail.

Regards,

S.Sateesh

1 Like

Sumit Gupta (Director)     12 December 2010

If you give him relieving letter, it would mean that you are relieving him of any pending responsibilities as well. If he is breaking a bond that was legally bound to, then you should not give him the relieving letter and it will be in your and his best interest if you tell him that you intend to pursue to case legally if he leaves without fullfilling the terms of the bond.

Advocate. Arunagiri (Advocate High Court Madras.)     14 December 2010

The agreement should give exit option on both sides. That is notice period for termination of the contract. If the termination is not provided, it means that the contract should be completed for the whole term. Any breach is liable for compensation. If you releave him, it clearly will say that you have accepted to releave him without any compenation, for breach of contract.

You have every right to reject his resignation letter.

You have every right to claim compensation if quits the job without releaving letter.

Employee and employer agreements imposing compensation clause is valid.

Vigneswaran (Lawyer)     14 June 2011

If the clauses of the agreement between the company and the employee specifies any remedy for breach, For. E.g. 2 months notice, payment of certain amount for breaking the bond or Salary cut then it would have to go by the agreement so all depends upon the agreement.The company should give the experience certificates for the employee since its the right of the employee.   

Kumar Doab (FIN)     19 June 2011

You have mentioned:

"Can we give a releving letter subject to settlement of eveything except non fulfilment of agreement period."

If everything has been settled by the employee, then you should also provide F&F,relieving letter,NOC/NDC,experience certificate,PF accumulation reports,PF withdrawl/transfer forms,for 16,etc.

It is believed that you did not prepare agreement without exit option for both parties.

Johndel Clay (Account Officer)     22 June 2011

In my own point of view, I guess it would not be good if you would give him the "relieving letter" because he breaks the contract that was legally signed by him, and it's up to you to pursue a case against him because of leaving without completing his contract.


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