If you are stuck in such a situation, here is what to do.

A situation has arisen where Mr. Ajay Verma, an employee at “Zenith Innovations Ltd.,” a tech firm in Nagpur, submitted his resignation. However, he failed to serve the contractually obligated notice period and did not complete a proper handover of his responsibilities and company assets. Subsequently, Zenith Innovations discovered that Mr. Verma had joined a rival company, “Quantum Dynamics,” without obtaining a relieving letter. The company sent multiple legal notices to Mr. Verma’s registered residential address in an attempt to resolve the matter, but he has been unresponsive. Now, Zenith Innovations is contemplating sending the legal notice to his new place of employment, Quantum Dynamics, but is concerned whether this action could be legally construed as defamation.

Advice in such cases

When dealing with an employee who has absconded, it is crucial for both the employer and the employee to understand their legal rights and obligations. Emotions can run high, but actions must be guided by legal principles to avoid further complications.

• For the employer, maintaining a clear and documented record of all communication and actions is paramount. This includes the resignation letter, attempts to contact the employee, and any evidence of incomplete handover or damages caused.
• For the employee, ignoring legal notices is a significant mistake. It weakens your position and may lead to an ex-parte judgment against you. Open communication, even if difficult, is often the better path to resolution.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

Applicable Sections of Law

This issue primarily falls under the domain of civil law, specifically contract law, rather than criminal law, unless specific criminal acts are involved.

• The Indian Contract Act, 1872: The employment agreement is a contract. An employee leaving without serving the notice period is a breach of this contract. The employer can sue for damages, which is typically the amount equivalent to the salary for the unserved notice period.
• The Specific Relief Act, 1963: An employer might seek an injunction to prevent an ex-employee from joining a competitor, but this is rarely granted by courts unless the employee was in a very senior position with access to sensitive trade secrets.
• Bharatiya Nyaya Sanhita (BNS), 2023: The question of defamation arises. Sending a legal notice to a new employer could potentially lead to a defamation claim under Section 356 of the BNS. However, for it to be defamation, the communication must be false, malicious, and intended to harm the employee’s reputation. A factually correct legal notice, sent in good faith to a valid address for the purpose of service, is generally not considered defamatory. The mode and content of the communication are critical.

If you are the complainant

If you are the employer (the complainant) in this scenario, here are the steps you should consider:

• Documentation: Ensure you have all paperwork in order: the signed employment contract specifying the notice period, the resignation email, records of attempts to contact the employee, and proof of any financial or operational loss due to the improper exit.
• Final Legal Notice: Draft a clear and concise legal notice through your lawyer. This notice should state the facts of the breach, the amount due from the employee (e.g., notice period buyout), and the consequences of non-compliance.
• Serving the Notice: Sending the notice to the new work address is a legally complex step. It can be justified as an attempt to serve the notice when the residential address has failed. However, it must be done carefully to avoid allegations of harassment or defamation. The notice should be addressed personally to the employee and marked “Private and Confidential.”
• Civil Suit: If the employee still does not respond or comply, your final recourse is to file a civil suit for recovery of dues and damages in the appropriate court.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

If you are the victim

If you are the employee (the victim of the situation or the notice), you should take the following steps:

• Do Not Ignore: Never ignore a legal notice. Your silence can be interpreted as an admission of the claims against you in a court of law.
• Respond Appropriately: Engage a lawyer to draft a formal reply to the legal notice. In the reply, you can state your side of the story, dispute any false claims, and express your willingness to resolve the matter.
• Negotiate: Often, these disputes can be settled. You can negotiate the terms of your exit, including the notice period payment. Perhaps you had valid reasons for leaving abruptly which can be communicated through your lawyer.
• Defamation Claim: If the notice sent to your new employer contains false statements and has caused tangible harm to your professional reputation, you may have grounds to file a defamation suit against your former employer.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

How the police behave in such cases

The police generally have no role in matters of employment contract breaches. This is considered a civil dispute. Police will refuse to register an FIR for an employee absconding or not serving a notice period. However, police intervention would be warranted if the employer alleges criminal activity, such as:

• Theft: The employee stole company property (laptop, data, etc.).
• Criminal Breach of Trust: The employee, entrusted with property or data, misappropriated it for their own use.
• Fraud or Cheating: The employee committed financial fraud against the company.

In such cases, the police would conduct an investigation as per the procedures laid out in the Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023.

FAQs people normally have

Can an employer legally withhold my relieving and experience letters?
Yes, an employer can withhold these documents pending the completion of full and final settlement formalities, which includes serving the notice period or paying the amount in lieu of it.

Is it illegal to join another company without a relieving letter?
While not “illegal” in a criminal sense, it is a breach of professional conduct and can cause problems. Many companies have a policy of not hiring candidates without a relieving letter from their previous employer. It can also be used as evidence against you in a civil suit filed by your former employer.

Can my old company ruin my career at my new company?
Directly attempting to sabotage your new job with false information can be grounds for a defamation suit. However, informing the new employer of a breach of contract through a formal legal notice is a grey area and depends heavily on the content and intent of the communication.

What evidence is required?

For the employer, the key evidence includes:

• The signed offer letter and employment agreement.
• The employee’s resignation letter or email.
• Proof of delivery attempts for previous notices (e.g., postal receipts).
• Internal emails and records showing an incomplete handover.
• Evidence of the employee joining the new company (e.g., a social media profile update).

For the employee, the essential evidence includes:

• A copy of all communication with the former employer.
• Any proof of attempts to complete the handover or settle the dues.
• The legal notice received from the former employer.

How long will the investigation take?

Since this is primarily a civil matter, there is no “investigation” in the criminal sense. The process involves sending a legal notice, which takes a few weeks. If the matter proceeds to court, a civil suit for recovery can be a lengthy process, often taking several years to reach a final verdict in the Indian judicial system.

Advocate Sudhir Rao, Supreme Court of India