I am at the end of my notice period, having worked for my current company for 2 years. I am serving the complete notice period of 90 days, and my resignation has been accepted by the management. Two days prior to my relieving, I inquired with HR about the documents I will receive on my last day. HR assured me that I would initially receive an acceptance of resignation letter stamped by the company, but the relieving letter will be issued exactly 20 days later. Is this acceptance of resignation sufficient for me to join another organization until I receive my relieving letter? When I asked about the delay, they said it is a rule. I currently maintain a good relationship with my boss and management. Still, why do they delay it?
From India, Noida
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From India, Noida
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Issuing Relieving Letters on the Last Working Day
There's no rule that the relieving letter should not be issued on the last working day. With due respect to HR professionals, it's simply lethargy on the part of the HR department of your organization. Though acceptance of resignation will be sufficient to join the new company, it's prudent to seek a relieving letter and service certificate.
On the other hand, you've mentioned that you have served your current employer for 2 years and are now looking for a change. If your employment career has short stints of 2-3 years, then future employment potential for you will be bleak.
Regards
From India, Madras
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270There's no rule that the relieving letter should not be issued on the last working day. With due respect to HR professionals, it's simply lethargy on the part of the HR department of your organization. Though acceptance of resignation will be sufficient to join the new company, it's prudent to seek a relieving letter and service certificate.
On the other hand, you've mentioned that you have served your current employer for 2 years and are now looking for a change. If your employment career has short stints of 2-3 years, then future employment potential for you will be bleak.
Regards
From India, Madras
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Understanding the Delay in Issuing Relieving Letters
As correctly stated by Mr. Kannan, there is no rule that mandates the issuance of a relieving letter after a specific period. However, the delay is not due to lethargy on the part of HR personnel. The reason for this practice is to ensure that there have been no failures in the system during the employee exit process. For example, it is important to ensure that all dues are paid or received and settled, and that a proper handover is completed at the time of exit. This is just a fail-safe system practiced by many companies.
The acceptance of the resignation letter should suffice initially at your new organization. Additionally, you can inform them about the "rules" of your previous organization.
Regards
From India, Mumbai
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As correctly stated by Mr. Kannan, there is no rule that mandates the issuance of a relieving letter after a specific period. However, the delay is not due to lethargy on the part of HR personnel. The reason for this practice is to ensure that there have been no failures in the system during the employee exit process. For example, it is important to ensure that all dues are paid or received and settled, and that a proper handover is completed at the time of exit. This is just a fail-safe system practiced by many companies.
The acceptance of the resignation letter should suffice initially at your new organization. Additionally, you can inform them about the "rules" of your previous organization.
Regards
From India, Mumbai
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Final Settlement Process on the Day of Exit
I would still reiterate that the Full and Final Settlement (FFS) should be completed on the day of exit. The calculations done 20 days later are not going to be different from those done on the date of exit. To prevent inadvertent mistakes, HR should prepare a checklist for FFS. I've listed a few aspects:
1. Is the employee eligible for Gratuity?
2. Days of notice period served.
3. Recovery of notice period, if any.
4. Earned Leave (EL) available for encashment till the date of exit.
5. Medical reimbursement applicable till the date of exit.
6. Recovery of medical reimbursement availed in excess of entitlement.
7. Leave Travel Allowance (LTA) applicable till the date of exit.
8. Recovery of LTA availed in excess of entitlement.
9. Income Tax (IT) recovery after considering the deductions submitted by the employee. In this aspect, the Finance department has to play a vital role.
10. Profession tax deductions till the date of exit.
11. Recovery of unsettled imprest/advance drawn by the employee.
12. Retrieval of property belonging to the company or recovery of equivalent value.
13. Is the employee eligible for Superannuation benefits?
14. Is the employee eligible for a bonus? This has to be noted and paid as and when it arises.
A few points get added from time to time on a case-to-case basis, and these points become part of the standard checklist.
Generally, we tend to give more attention to employees who work with us compared to those who have quit. If we delay the process beyond the date promised to the employee who has quit, the information gets passed on to the employees who are working, and they may tend to exhaust all eligible benefits and abandon employment without proper notice due to a lack of confidence.
This is my opinion, and I have been practicing this for the past 30 years. I have had instances of a few rehirings as employees who quit felt they were treated better in our company.
Regards
From India, Madras
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I would still reiterate that the Full and Final Settlement (FFS) should be completed on the day of exit. The calculations done 20 days later are not going to be different from those done on the date of exit. To prevent inadvertent mistakes, HR should prepare a checklist for FFS. I've listed a few aspects:
1. Is the employee eligible for Gratuity?
2. Days of notice period served.
3. Recovery of notice period, if any.
4. Earned Leave (EL) available for encashment till the date of exit.
5. Medical reimbursement applicable till the date of exit.
6. Recovery of medical reimbursement availed in excess of entitlement.
7. Leave Travel Allowance (LTA) applicable till the date of exit.
8. Recovery of LTA availed in excess of entitlement.
9. Income Tax (IT) recovery after considering the deductions submitted by the employee. In this aspect, the Finance department has to play a vital role.
10. Profession tax deductions till the date of exit.
11. Recovery of unsettled imprest/advance drawn by the employee.
12. Retrieval of property belonging to the company or recovery of equivalent value.
13. Is the employee eligible for Superannuation benefits?
14. Is the employee eligible for a bonus? This has to be noted and paid as and when it arises.
A few points get added from time to time on a case-to-case basis, and these points become part of the standard checklist.
Generally, we tend to give more attention to employees who work with us compared to those who have quit. If we delay the process beyond the date promised to the employee who has quit, the information gets passed on to the employees who are working, and they may tend to exhaust all eligible benefits and abandon employment without proper notice due to a lack of confidence.
This is my opinion, and I have been practicing this for the past 30 years. I have had instances of a few rehirings as employees who quit felt they were treated better in our company.
Regards
From India, Madras
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Yes, thanks for the inputs, Praful. I enquired with my upcoming company's HR, and I got a positive response.
@Kannan sir, my area of expertise is information security, and there is a huge need for professionals in this area. Therefore, companies are willing to hire people at any cost from other competitors without worrying about 2 or 3 years. I hope this trend will not affect me in the long run. Many thanks for your inputs; they were really useful.
From India, Noida
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@Kannan sir, my area of expertise is information security, and there is a huge need for professionals in this area. Therefore, companies are willing to hire people at any cost from other competitors without worrying about 2 or 3 years. I hope this trend will not affect me in the long run. Many thanks for your inputs; they were really useful.
From India, Noida
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