Notice period and relieving letter
Anuj Garg
(Querist) 27 April 2012
This query is : Resolved
Hi Experts,
If a company has a policy of serving notice period of 3 months and an employee mention in his email that he will not be able to serve for more than 1 or two months and management does not agree on it.
Even employee is ready to pay the short payout for the remaining days and he has mentioned everything in his resignaion email.
What will be the Consequences for employee and can company stop his relieving letter in this case?
Please share if you have any fact or decision from labour department or court.
Thanks
ajay sethi
(Expert) 27 April 2012
always part with employer on amicable note . you have signed appointment letter it mentions 3 months notice period . serve the same .
if company is insisting that it dosent want any short payout then you ahve to serve . company may not settle your dues easily . nor issue reliving letter
ajay sethi
(Expert) 27 April 2012
the granting of any relief of mandatory injunction directing the Defendant to issue a relieving letter to the Plaintiff would tantamount to granting the final relief itself and this was impermissible in law. Reliance is placed upon the judgment of the Supreme Court in Metro Marins v. Bonus Watch Co. Pvt. Ltd. AIR 2005 SC 1444.
ajay sethi
(Expert) 27 April 2012
Posted On Friday, August 22, 2008 at 09:50:11 PM
bangalore mirror
Justice can sometimes be quick as a petitioner in the High Court found out on Friday. Mechanical engineer Rachan Rajshekar was shocked when his employer, the public sector undertaking Bharat Earth Movers Limited (BEML) refused to give him his relieving letter and service letter after his resignation.
The company wanted him to pay Rs 2.5 lakh as damages for leaving the company. Afraid that an opportunity in the private sector would slip out of his hands Mangalore-born Rachan approached the High Court.
On Friday, Justice Ajit Gunjal passed an order directing the company to give Rachan both the relieving and service letters and also made it clear that he did not have to pay any damages to the company.
Noting that Rachan has been wronged, the court also directed that Rachan be given the letters the same day, prompting him to head for BEML’s KGF facility right after leaving court.
Rachan joined BEML on April 2, 2007 and was an engineer on probation drawing a salary of approximately Rs 22,000 per month. He was still on probation when he resigned from his job on April 8, 2008.
He gave one month notice for resignation as is the norm. But to his surprise it was not accepted. What’s more, he was asked to pay Rs 2.5 lakh as damages to the company.
Some time after his appointment, BEML had issued a company bulletin to the effect that those resigning had to pay damages.I had a very good offer from a private company. And it was the question of my career. Paying Rs 2.5 lakh as damages would have ruined me financially. I had no option but to approach the court through my advocate Pawan Chandra Shetty,” says Rachan. The case was filed in the High Court a few weeks ago and came up for judgment on Friday.
“The company was acting as if the employee was a bonded labourer. We were able to convince the court that Rachan did not need to pay the damages as the bulletin was issued after his appointment. It was plain exploitation and the court gave us justice,” Rachan’s advocate Pawan Chandra Shetty said.
What surprised Rachan and his advocate more was the fact that the court ordered the company to issue the letters the same day. “My client has left for the company’s office to collect them (the letters). It was surprisingly quick but goes to show what the judiciary is capable of,” Shetty said.
Anuj Garg
(Querist) 27 April 2012
Thanks for reply Mr Sethi.
As you mentioned in your first reply that "company may not settle your dues easily . nor issue reliving letter". Does it mean that company is not liable to give relieving letter even if an employees is giving 1-2 notice, which is in itself reasonable time? and he will not getting different treatment then an absconding case.
In that case if someone gets an opportunity and he does not have 3 months time, he will loose it. In that case every emaployee is still a bonded labour for atleast 3 months period. and every company puts those types of conditions which are in their favor and employee has to accept it because these will be more or less same in every organization.
So what are remedies available to an emplyee?
ajay sethi
(Expert) 27 April 2012
if you have signed contract you are bound by terms of contract . if you have agreed to serve for 3 months uyou must serve for 3 months . it is company preorgative whether to accept or not short payout .
if company refuses to give releiving letter inspite of serving 3 months notice then you can move court
prabhakar singh
(Expert) 29 April 2012
OBJECTIVE behind inserting such a clause in agreement of employment by employers is that when an employee is likely to go they can coup with the sudden vacancy so created so that their business does not suffer.
Your thinking is one sided while justice is to consider two sides of versions.
