Hi,
I have been working with a Hyderabad based company for past 17 months. Currently, I am at onsite for the past 10 months. In my appointment letter following were written:
" 7. Commitment period:
i. As the company has invested in your training, you will be required to serve the company for a period of at least 30 months from the start date of this letter.
ii. In case you leave before the stipulated agreed commitment period of 30 months (ending on July 31st, 2014), you will be required to pay a penalty of Rs. 350,000 (Three lakhs Fifty Thousand only) or the salary equivalent to preceding 12 months of your salary paid to you by XYZ company, whichever is higher. "
I haven't got any formal training and it was a on the job training and was send to client side before my internship was over. Now I have got a good offer since my current employer has included lion share of my CTC in bonus. I wanted to leave this organization in good terms. I have talked to couple of previous employees and they all were telling the same that this company wont be giving you relieving letter or experience certificate on leaving the organization and instead they will treat you as absconding. I have a 2 months notice period after the 30 months mentioned above. I am ready to serve one month notice and compensate it or buy out the second month. My current employer doesn't give salary slip and provides salary slip only on written request.
Is there any way I could get the relieving letter and experience certificate?
I have all other documents like joining letter, salary slip of past 2 months, bank statement and can forward my resignation letter to new employer. Will this work?
Will going to Labor court to settle this issue of any help to me?
Please reply.
Thanks
Joey
From India, Pune
I have been working with a Hyderabad based company for past 17 months. Currently, I am at onsite for the past 10 months. In my appointment letter following were written:
" 7. Commitment period:
i. As the company has invested in your training, you will be required to serve the company for a period of at least 30 months from the start date of this letter.
ii. In case you leave before the stipulated agreed commitment period of 30 months (ending on July 31st, 2014), you will be required to pay a penalty of Rs. 350,000 (Three lakhs Fifty Thousand only) or the salary equivalent to preceding 12 months of your salary paid to you by XYZ company, whichever is higher. "
I haven't got any formal training and it was a on the job training and was send to client side before my internship was over. Now I have got a good offer since my current employer has included lion share of my CTC in bonus. I wanted to leave this organization in good terms. I have talked to couple of previous employees and they all were telling the same that this company wont be giving you relieving letter or experience certificate on leaving the organization and instead they will treat you as absconding. I have a 2 months notice period after the 30 months mentioned above. I am ready to serve one month notice and compensate it or buy out the second month. My current employer doesn't give salary slip and provides salary slip only on written request.
Is there any way I could get the relieving letter and experience certificate?
I have all other documents like joining letter, salary slip of past 2 months, bank statement and can forward my resignation letter to new employer. Will this work?
Will going to Labor court to settle this issue of any help to me?
Please reply.
Thanks
Joey
From India, Pune
Dear Joey,
Let us discuss the issue, point wise:
The company wanted you to work for a minimum periof of 30 months from doj. You agreed & accepted the same by signing the appointment letter, since at that time it was your priority to get a job. Therefore, in my view, you have a moral responsibility to stay with the company atleast for the agreed period.
Expenses towards training is a general clause being added by such employers to legally justify the penalty clause whereas, normally(exceptions are there) no training except OJT or Induction Training is imparted to new entrants. In my view, going for legal remedy will not solve your problem as it will be a lengthy exercise.
Since you wish to maintain good relations with your employer, you may speak to your HR person instead of speaking to your friends and request to reduce the penalty clause amount, pay the same, serve the required notice period and get the relieving letter etc. However, I would like to reiterate my stand as mentioned in first para.
It is the HR department of your new company to decide whether to allow you to join on the basis of your submitting copy of resignation letter, bank statement and other documents etc., but in my view, very few organizations allow to join without relieving letter or copy of resignation acceptance.
From India, Jaipur
9Let us discuss the issue, point wise:
The company wanted you to work for a minimum periof of 30 months from doj. You agreed & accepted the same by signing the appointment letter, since at that time it was your priority to get a job. Therefore, in my view, you have a moral responsibility to stay with the company atleast for the agreed period.
Expenses towards training is a general clause being added by such employers to legally justify the penalty clause whereas, normally(exceptions are there) no training except OJT or Induction Training is imparted to new entrants. In my view, going for legal remedy will not solve your problem as it will be a lengthy exercise.
Since you wish to maintain good relations with your employer, you may speak to your HR person instead of speaking to your friends and request to reduce the penalty clause amount, pay the same, serve the required notice period and get the relieving letter etc. However, I would like to reiterate my stand as mentioned in first para.
It is the HR department of your new company to decide whether to allow you to join on the basis of your submitting copy of resignation letter, bank statement and other documents etc., but in my view, very few organizations allow to join without relieving letter or copy of resignation acceptance.
From India, Jaipur
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Relieving & Experience Letter.doc