Ankish Chaudhari (SAP Consultant) 24 June 2011

Non Issuence of Service/Releaving Letter

Hello,

I was working with one of the IT Company in India. Company processed my H1 and deputed me to client location in USA on 19th January 2007. For this they signed one undertaking mentioning this undertaking is for initial 9 months and will be deemed extended if I continue after 9 months in US. As per this undertaking, I cannot leave the company in USA and if i do so i will have to pay 5 lacks to the company.

I resigned the company in USA on 24th June 2008 and joined another company there. For this my company did not issue me any relieving/experience Letter. When I came back to India and asked to do the full and final settlement, they demanded Rs. 5 lacks. All this conversation happened through email and no legal notice has been issued till date. Now I have following questions:

1. Is an undertaking valid for travelling outside India for more than a year. I served 17 months in US for the company. I also visited back to India once on vacation and went back to US.

2. Am I legally liable to pay 5 lacks to the company?

3. As per US law we do not need to give any notice and we can leave the company any time.

4. I have all of my Pay slips, TDS certificates from my company of India and USA.

5. Is there any possibility to settle this amount with the company.

6. Whether this undertaking is still good in law even after 3 years with no legal notice from company side

Thanks,

Ankish

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6 Replies

Sajeev Menon (Legal Consultant Dubai 00971 508836442) 27 June 2011

Dear Ankish,

Please be noted that the clause which you have mentioned in your undertaking ' for initial 9 months and will be deemed extended if I continue after 9 months in US', is not valid because the undertaking which you have signed is not for a sepcific period. An employer cant restrain an employee from leaving the job for an unlimited period. If both party decides they can treat that undertaking as extended. Eventhough you have completed the 9 months with your previous employer and you got the previlege to choose another employer and you can claim your monetary benefits with the previous employer.

Just send a legal notice requesting your end of service benefits with the other allowances due. If it not settled in the specified period, you can file petition before the Labor Court for the redressal.

Deepak Vasudevan (Tech Architect) 27 June 2011

Desi companies operating in United State often nurture a vicious view that they actually represent the nation in the Congress and senates. I think you should report that organization to Labor Department and get them off the business ASAP. I would also suggest in informing Better Business Bureau so that their clientele interest is safeguarded.

Kumar Doab (FIN) 03 July 2011

Learned Mr. Menon and Mr. Vasudevan have given valuable advice. Kindly follow it.

You are within your rights to ask for settlements of your dues, F&F, experience certificate, form 16, PF accumulation reports, NOC/NDC if you have already submitted company property, etc.... , and it is imp. for you to get these.

Company may sit on relieving letter.

In US huge penalties are awarded and that is why companies are wary of lawsuits/complaints.

If you are in US you can report to labor dept., or consult an attorney, or issue them a notice. You shall get your dues and docs and you shall be off the hook.

(Guest)

Dear Menon,

Although period of extention not specified, it all depends upon the interpretation taken by the learned court of law, as the term "DEEMED extended" may go in favour of the employer, as the undertaking was duly signed and accepted by the employee. However, if there was no claim for the compensation by the company for complete 3 years and more that may go in favour of Mr. Ankish.

(Guest)

Dear Deepak & Kumar,

Since the employment/ deputation terms were settled with the Indian company in India, 'Better Business Bureau (BBB)' the issue may not be within the domain and scope of BBB of USA.

As already discussed above, if compained, even the Labour department of US cannot extend its jurisdiction over the Indian company, as Mr.Ankish was employed by Indian company in India and the MOU was also signed with that in India only.

Kumar Doab (FIN) 22 July 2011

Learned Mr. Dhingra has given valuable advice and clarified the matter.

From the date of your resignation, 3 years are over. It is not known on which date they communicated their demand of Rs.5.00 lacks by email, and the period with in which you were asked to submit this amount..

You are with in your rights to obtain , letter of acceptance of your resignation,work experience certificate, F&F statement, form 16, PF accumulation reports, PF transfer/withdrawal forms etc. Company can sit on relieving letter, which is different from experience certificate.Company is not supplying you the F&F statement probably since they are wary of claiming the amount of 5 lacks in writing in F&F. However it does not imply that they can deny supplying F&F statement.

You can exercise your rights.

Keep the copy of resignation, dispatch proof, POD safely with you.