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vivek (audit manager)     21 December 2012

Difficulty in getting a relieving letter

hi,

I am working in a ca firm for the past 1 and half years.Initially when i joined i indicated that i would stay for a period of 3 years.Now i have a better opportunity but the firm is refusing to give me a relieving letter unless i serve another 1 and half years. But the firm is opting to enforce this selectively where in the case of certain persons they are relieved even within 6 months of joining. Also the firm has the option to fire me but i dont have the option of quiting.

The propspective employer is refusing to accept my explanation and is inisisting on a relieving letter. Can an employee be forced to work against his wishes and also is there any legal action which can be initiated to direct the firm to give me my relieving/experience certificate.

 



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 1 Replies

Kumar Doab (FIN)     21 December 2012

You have posted that:

--“Also the firm has the option to fire me but i dont have the option of quiting.”

 

Is it mentioned in your contract of employment/appointment letter?

What kind of employment contract it is?

--“Initially when i joined i indicated that i would stay for a period of 3 years.”

How did you indicate, verbally or in writing?

Did you sign a service agreement or bond?

--“Now i have a better opportunity but the firm is refusing to give me a relieving letter unless i serve another 1 and half years.”

 This is to enslave the employee. Employee can not be forced to serve the employer.

--“But the firm is opting to enforce this selectively where in the case of certain persons they are relieved even within 6 months of joining.”

Company can waive off the terms and conditions as its discretion and pleasure.

--“The propspective employer is refusing to accept my explanation and is inisisting on a relieving letter.”

The copy of resignation proof of its dispatch and delivery, last salary slip showing DOJ and DOL, FNF statement showing DOJ/DOL can be deemed as good as reliving, and

Acknowledgment of resignation, acceptance of resignation, may satisfy the new employer. The new employer may ask to sign an affidavit/indemnity mentioning employee is not employed elsewhere.

--“ Can an employee be forced to work against his wishes”

No. If the contract of employment has a clause on penalty e.g. notice pay that is the max. Penalty employee has to pay.

If employee has signed some other contract/agreement e.g. service agreement, bond, the employer may press for liquidated damages/amounts mentioned in such contract/agreement. Employer may also press for loss if any caused by employer. However company shall have to prove it.  

 

“and also is there any legal action which can be initiated to direct the firm to give me my relieving/experience certificate.”

 

Reliving letter is issued post all settlements signifying that nothing is due against employee.

If there is nothing due against Employee Company should happily issue service certificate/work experience certificate, reliving letter, along with correct FNF statement, payment of FNF dues, Form 16, etc.

IESO Act/Model Standing Orders specify to issue service certificate.

Such matters are best resolved by applying exceptional levels of persuasion, persistence, negotiation, reasoning skills, while in service.

If you have some handle on the company and you can bring the good offices on negotiation table you may apply it and resolve the matter in your favor.

In a given situation employee can approach trade union, and/or invoke the provisions of ID Act, IESO Act, Payment of Wages Act, SE Act etc………as per explanation of employee under the provisions of these enactments or approach civil court. Designation alone does not decide that employee is a workman or not.

If nothing works it shall be appropriate to approach a competent and experienced service lawyer/labor consultant with copies of all of your documents salary slips appointment letter, standing orders, service rule book, HR policy, exit policy, emails etc and give inputs in person and proceed under expert advice of your lawyer. Your lawyer shall evaluate the merits and may opine that you fall within the category of workman.

Company may yield to legal notice of your lawyer or you may have to agitate in the appropriate forum. Company may yield to your demands during conciliation proceedings in o/o ALC or the ALC shall issue reference to Labor Court.

Or you may have to agitate in civil court.

 


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