Employer holding relieving letter when resigned during bond period

Question

I had a service agreement for 3 years in a private limited company. My designation as Process Engineer.I worked for 2.5 years including 3 month notice period which I served before resignation. My query is that can management hold my relieving letter or ask for compensation even if I served notice period. I just want my relieving letter and not my experience letter. The reason for my resignation is to persue MBA and I have also mentioned it in my resignation letter. I have also returned all company assets and I have a copy of my resignation letter signed by my manager.

ALEXBK 1 Answer 2 views
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Answer ( 1 )

  1. instalegal
    0
    2025-06-03T13:08:04+05:30
    Reply

    Legally, if an employee has duly served the full notice period as per the terms of employment, returned all company assets, and there are no outstanding dues or disciplinary issues, the employer cannot withhold the relieving letter. In your case, although the original service agreement was for three years, you have completed 2.5 years of service, including the three-month notice period, which substantially satisfies the terms of the agreement. Unless the company can prove actual and quantifiable loss due to your early departure, demanding compensation or withholding the relieving letter would amount to an arbitrary and coercive act, contrary to principles of natural justice and fair labour practices. Courts have consistently held that such relieving letters cannot be withheld unreasonably when an employee resigns in accordance with contractual obligations. Therefore, you are legally entitled to receive your relieving letter, and any attempt to withhold it or impose penalties without just cause may be challenged before appropriate legal forums

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