Reliving letter & NOC
4 weeks ago
Hello,
Post my resignation my employer willing to onboard me to a new project which is having leagal cluse with my future organization. I asked NOC and reliving date confirmation though mail and I mentioned that after acknowledgement to the previous mail only I will onboard to new project. But employer threatening me to onboard without confirmation mail and mentioned that they are not going to provide reliving letter. How to proceed with this issue. Please help.
Upon resignation following the terms of the offer/appointment letter, the employer cannot withhold the No Objection Certificate (NOC) or relieving letter of the outgoing employee without a valid reason, as per Section 27 of the Indian Contract Act, 1872. Any clause restricting an employee's right to resign for better opportunities is deemed void. However, if the employer proves that the employee is joining a competitor to disclose trade secrets, the court may issue an injunction.
Section 73 of the Act pertains to unliquidated damages, while Section 74 deals with liquidated damages. Compensation is attracted only if breach of contract results in actual loss or damage to the employer.
For workmen as defined under the Industrial Dispute Act, filing a complaint against the employer for unfair labor practices can be pursued by serving a legal notice and reaching out to the Labor Commissioner's office. Managers or administrators must file a civil suit before the Civil Court for relief.
A.Dear Sir
Please approach the following authority or similar authority in a state
The Office Commissioner of Labour
Section 12 in The Industrial Disputes Act, 1947
12. Duties of conciliation officers.- (relevant section 12(2) of ID Act)
(1) Where any industrial dispute exists or is apprehended, the conciliation officer may, or where the dispute relates to a public utility service and a notice under section 22 has been given, shall hold conciliation proceedings in the prescribed manner.
(2) The conciliation officer shall, for the purpose of bringing about a settlement of the dispute, without delay, investigate the dispute and all matters affecting the merits and the right settlement thereof and may do all such things as he thinks fit for the purpose of inducing the parties to come to a fair and amicable settlement of the dispute.
(3) If a settlement of the dispute or of any of the matters in dispute is arrived at in the course of the conciliation proceedings the conciliationofficer shall send a report thereof to the appropriate Government 1 or an officer authorised in this behalf by the appropriate Government] together with a memorandum of the settlement signed by the parties to the dispute.
(4) If no such settlement is arrived at, the conciliation officer shall, as soon as practicable after the close of the investigation, send to the appropriate Government a full report setting forth the steps taken by him for ascertaining the facts and circumstances relating to the dispute and for bringing about a settlement thereof, together with a full statement of such facts and circumstances, and the reasons on account of which, in his opinion, a settlement could not be arrived at.
(5) If, on a consideration of the report referred to in sub- section (4), the appropriate Government is satisfied that there is a case for reference to a Board, 2 Labour Court, Tribunal or National Tribunal,] it may make such reference. Where the appropriate Government does not make such a reference it shall record and communicate to the parties concerned its reasons therefor.
(6) A report under this section shall be submitted within fourteen days of the commencement of the conciliation proceedings or within such shorter period as may be fixed by the appropriate Government: 3 Provided that, 4 subject to the approval of the conciliation officer,] the time for the submission of the report may be extended by such period as may be agreed upon in writing by all the parties to the dispute.]
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If an employee tendered his resignation following the terms of the offer/appointment letter then on the expiry of the notice period, the relationship between employee and employer gets severed/seized, and on cessation of the relationship, an employer cannot withhold NOC or relieving letter of the outgoing employee in the absence of any valid reason or cogent ground that amounts to unfair labour practices on the part of the employer. As per the mandate of Section 27 of the Indian Contract Act,1872, any terms and conditions of an agreement that directly or indirectly compels an employee to serve the employer or puts a restriction on them joining the competitor or other employer is not valid and to be void on contest. The employee has the right to resign from the employment for a better opportunity, even if there is a non-compete clause in the contract of employment or if he/she has agreed to serve the employer for a specific period. In the case where the employer can prove that the employee is joining the competitor to disclose the trade secret or technical know-how then the court may issue an injunction order restricting the employee from joining the competitor. Further, Section 73 of the Act makes provision for un-liquidated damages (not stipulated in a contract), Section 74 deals with liquidated damages (stipulated in a contract) and no compensation is attracted for mere breach of contract u/s.73. 74 of the Act unless such breach resulted in an actual loss or damage to the opposite party employer. So, in the prevailing situation, if you were not holding the position of Manager/Supervisor but a workman as defined u/s.2(s) of the Industrial Dispute Act then after serving a legal notice to the Company, reach out to the office of the concerned Labour Commissioner for filing a complaint against the employer over alleged unfair labour practice to resolve the grievance. But, if you were holding the position of Manager or Administrator in the Company, you have to file a civil suit before the Civil Court for desired relief in the matter. Feel free to contact our legal team of expert professionals, if required, to navigate the issue in the right way.
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