Can a company deny experience-relieving letter for violating NDA

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.]

A.Dear Client,
For a breach of the terms of an employment contract, an employer can take legal action against the employee claiming damages arising out of the breach of said contract. But the action of the employer can be challenged by invoking Section 27 of the Indian Contract Act, 1872 which prohibits any agreement in restraint of trade and profession. The law states that an agreement or contract will be illegal only if it restrains someone from exercising a lawful profession/ trade/ business. As per the mandate of Section 27, any terms and conditions of an agreement that directly or indirectly compels the employee to serve the employer or puts a restriction on them joining the competitor or other employer is not valid. The employee has the right to resign from the employment even if he has accepted the terms and conditions of his offer letter. In the case where the employer can prove that the employee is joining the competitor to disclose the trade secret then on his appeal, the court may issue an injunction order restricting the employee from joining the competitor. Further, Section 73 of the Contract Act, 1872 makes provision for unliquidated damages. Section 74 of the Act deals with liquidated damages and no compensation is attracted for mere breach of contract u/s.73. or 74 of the Act unless such breach resulted in an actual loss or damage to the opposite party employer. Further, termination without notice other than a disciplinary action based on proven misconduct amounts to illegal termination and is defined as an industrial dispute under Section 2A of the Industrial Dispute Act, 1947 which also violated the mandatory provision of Sec.25F and 25N of the Act that prescribed certain conditions to comply with by the employer before termination/retrenchment of a workman/employee from the employment. Moreover, an employer cannot withhold the relieving letter or F & F Settlement dues of an employee on cessation of employment either on resignation or termination which also amounts to unfair labour practices. In that scenario, the terminated employee/workman can raise an industrial dispute directly before the Industrial Tribunal/Labor Court concerned for adjudication within three years from the date of termination/retrenchment. So, in the prevailing situation, if you are 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, you should raise an Industrial dispute directly before the State Govt. Industrial Tribunal under Sec.2A of the I D Act seeking reinstatement in service with back wages. You can also file an application before the State Labour Court under Sec.33C(2) of the Industrial Disputes Act, 1947 claiming your F & F Settlement dues from the company. The Division Bench of the Karnataka High Court in the case of Commissioner of Income Tax v. Texas Instruments India Pvt Ltd (2021) 435 ITR held that In terms of section 2(s) of the ID Act, the definition of a workman is very broad since the said definition would cover any person who has the technical knowledge, self skilled in an industry. Thus the software engineer would per se come within the purview and ambit of a workman under Section 2(s) of the ID Act so long as such a person does not take a supervisory role. Further, the Hon'ble Bombay High Court in the case of Godrej and Boyce Manufacturing Company Ltd. v. Shivkranti Kamgar Sanghatana, 2024 SCC OnLine Bom 938, decided on 28-03-2024 ruled out that the nature of duties and functions is the determining factor in ascertaining ‘workman’ under S. 2(s) of Industrial Disputes Act, 1947. Otherwise, if you are holding the position of Manager/Administrative Officer in the Company, you have to file a civil suit before the Civil Court seeking appropriate relief in the matter.