Facing a Legal Notice from My Former IT Company: How Should I Respond and What Are My Options?

Dear Sir,

I received a legal notice from my last company, which is an IT company. I had been working with them for the past 4.8 years. I left the company without giving the required one-month notice and received only ten days' worth of salary. I did not sign any bond with them and was mentally harassed by some senior individuals.

They have retained my original 12th certificate in accordance with company policy since my joining, and it remains in their possession. Recently, they issued a legal notice through an advocate alleging various offenses like software theft, sharing of confidential data with my current employer, and divulging client names to my present company. The notice demands damages amounting to Rs. 2,800,000 within ten days, threatening criminal action if I fail to comply.

I seek your advice on how to proceed. Should I respond to the notice? Do I need to engage an advocate? What are the potential consequences I may face, considering my innocence? Could the police become involved?

Regards,
Sumanta

Nothing to worry. They are just creating pressure. As there is no such bond been signed between the two, prepare the reply of the notice in consultation with the lawyer. The answer to each and every allegation should be covered in it.

Hi,

Don't worry about this because most companies use only a lawyer's letterhead and write everything in their own words. Now, you can consult with a lawyer, send a notice, and ask them about the damages.

Regards,
Jitendra

Nothing to worry, Sumant. They just want to create mental pressure on you. Maybe, as they know about you, they might be thinking that you will fear in these kinds of situations and approach them for compromise and settlement.

Just meet a reputed and genuine advocate, take his/her advice, and prepare to send a reply to the legal notice as soon as possible. You can even charge them for this mental harassment, which you can discuss with your advocate.

Thanks & Regards,
CRK
Email: crk.mbahr@yahoo.com

Dear Mr. Sumant,

Please note that you have to hand over all the relevant documents and other related items to your previous employer and obtain a relieving letter. Submitting a resignation letter without completing the notice period may lead to legal action, as this falls under double employment. They may also send a notice to your present employer. There is nothing to be overly worried about, but it is better to complete the handing over formalities and somehow obtain the clearance.

Secondly, review your previous employer's appointment letter. Look for critical clauses; they may have a stringent notice period and handing over clauses, which could be the reason for the legal notice.

It is advisable for you to obtain clearance from your current employer before joining the new organization. This will be beneficial for your career.

Best regards,
Kameswarao

Dear Shri. Sumant,

I agree with Kameswarrao's opinion, but you have to review the contents of the Appointment letter regarding the confidentiality of documents and papers. Check if you have violated that rule; if so, they have the authority to take action. It is very concerning that you left the company without resigning, which gives them a valid reason to blame you for any issues outlined in the appointment letter. Be prepared with a lawyer to respond to the letter; do not delay in responding.

Shrikant
9423376641

I agree with Shri Kameshwarao. At least there should be your formal response as a token of willingness to settle the case. However, you may note the harassment (people) which led you to skip; they may also not be willing to create more cases against employees as it would reflect their own mismanagement.

Dear Mr. Sumant,

I agree with the views that ethics and contractual terms demand that you should submit a resignation before leaving an organization. After resignation, it is the responsibility of management to follow the procedure and relieve you as per the protocol. If they do not relieve you, it would be appropriate for you to exit on your own without any settlement.

Regarding the legal notice, do not worry excessively. It will be a lengthy battle if the company goes to court. In the meantime, respond appropriately to the legal notice by refuting the various allegations made therein. You may seek the assistance of a lawyer to craft your response.

All the best.

Goodbye,
agdesai

Sumanta - 2 points here, from the perspective of ethics:

1. It is always best to serve the notice period and come out with a release letter.
2. Do ensure that you have not violated any terms of employment, including confidentiality.

However, given the current context, it is advisable that you engage a lawyer to reply to the letter - you'd have to give him the facts of the matter. You may post your query on Lawyersclubindia - Law, Lawyers, Advocates, Law Firms, Legal Help, Legal Experts, Judgments, Social Network for Lawyers, Legal Community, Law Help, Indian Lawyers and seek advice.

Archana

I agree with Archana's advice. First, reply to his notice after consulting with a lawyer. Also, try to consult your previous employer, hand over the charge, and obtain a relieving letter. It is always better to avoid any litigation.

Thanks & regards,
Ranjeet

Don't worry, there would be nothing to fear. They have no evidence to prove any of the matters. You have been serving the company for around five years, and you are an important employee to them.

Dear Sumant,

Just review the terms and conditions of your appointment letter. You should obtain the proper relieving letter from the employer after handing over the responsibilities and ensure that there is no violation of the terms and conditions of the employment. It is suggested to approach the employer to solve the issue.

Vikram Rana Manager (Admin & HR)

Hi,

You need not worry about this legal notice. Just read your appointment letter to see if there is a clause to pay the notice period amount in case of sudden resignation. Then, take a DD in the company's favor and send a resignation letter through registered post with acknowledgment.

Before proceeding, it is advisable to consult with an IR consultant. Please ensure not to repeat this mistake in the future.

Regards,

Ramakrishna Reddy A Regional HR Head

Hi,

If you have done nothing wrong, then just have the courage and go for an advocate before responding to them. Good luck.

Dear Kumar,

With reference to your quote, as an HR, my suggestion is to go to your previous organization and sit with the concerned person to talk to them in a cool manner. Request them to help you in this regard. Being professional, you may approach the HR head to settle your full and final settlement with the company amicably. First, let me inform you of the terms and conditions (clauses) which they have mentioned in your appointment letter.

Srinivasa Rao.S

1. There is no doubt that any legal notice must be answered, and that too within the stipulated time mentioned in the same.

2. If the terms of employment call for a notice period, regardless of the circumstances, it would have been better if you had served the notice and left.

3. Claiming damages from your ex-company is subject to proving with evidence. Therefore, please recollect your memories to determine if there is any evidence with your ex-company indicating a violation of any code of conduct policy or non-disclosure agreement policy that was given to you, if any. If you believe there is evidence, you may need to request them to drop the matter, citing your various economic conditions. If you believe you are innocent, you can defend yourself.

4. I suggest you consult a lawyer known to you and respond to the notice promptly. The fees for replying legally will be less than five digits.

Hi,

I very much agree with the advice of the experts. You should consult a lawyer. Also, there is no need to worry as the company has two negative points: a) you didn't sign any bond with the company, and b) the company cannot retain any original certificates of employees as it is illegal as per law.

Regards,
discusshr

QUESTION—I worked with an IT company for about 5 years. I did not commit anything wrong. However, I left the job to join another company without giving one month notice. The company still has my 10 days salary and my original secondary school certificate. Now the company has sent me a legal notice making false allegations (like theft of software; sharing confidential data sharing with the present company; disclosing client list to the present company etc.) and asking me to pay Rs. 28,00,000 as damages within 10 days, failing which they would initiate criminal action against me. Please advise.

ANSWER—If the charges are false / unprovable, you should simply reply to the legal notice saying something like this: “Sir, all charges are wrong and denied. I had told you earlier that I am seeking job change and needed my original certificate to be presented to any future employer but you refused to give me the same. Since the present company was willing to give me a job even without seeing the original documents in case I joined immediately, I was left with no option but to join them as required. You already have my 10 days salary. I am willing to pay the salary equivalent for 10 days as soon as you return to me the original documents retained by you.”

The company is likely to agree to return the document and is unlikely to take any further action against you.

It is preferable that an advocate should prepare the reply.

-- M C Gupta

MD (Medicine), LL.M.

Ex-Professor

Practicing advocate

27 January 2010

As you are saying they are taking legal action, then the police will get involved. Please review the company's policies. Take this very seriously because the company cannot email or issue a notice stating that you have to pay a large amount. Do not sign anywhere if they ask you to do so.

Thank you.

My Dear Friends,

I am amazed at the rather flippant advice some members have offerred.

Well then it is your backside which is one fire, not theirs. Please do not follow some of the very immature advice that has been offered.

Take the matter seriously.

Son, you are in a bit of trouble.

Let me get the facts right:

1. You worked in a software company for 4.8 years and then left their services without giving any notice.

Did you submit your resignation letter or did you just walk away one fine day?

2. What are terms spelt out in the Exit Clause in your appointment letter?

3. You worked for 10 days in the month that you left the Co. without giving any notice. This may be the reason that you have stated that 10 day's salary is left with them.

4. My I also suppose that you did not go though with the “Handing Over Process”. This means that you may have had some of the Co.'s property/ies with you in your possession when you left and wich you did NOT return.

You should have handed these over when you left.

5. You have not signed any Bond with the Co.

Now let us examine the situation you are actually in:

• You are governed by the stipulations mentioned in your Appointment Letter. You are obliged to give to the Company the Notice Period stated in the Exit Clause.

• If you did submit your resignation letter, the wording of the same are important.

• Well you are liable to compensate for the Notice Period that you did NOT give to the Co. Generally it is the Gross Salary wish is the basis of calculating the amount.

• You will have to return the Co.'s property/ies in case you have any of these in your possession.

The Suggested Course of Action:

You may like to:

• Call up the HR person and prevail upon him to meet with you.
• Explain to him your side of the story which led to your exit from the Co.
• Offer to pay up for the shortfall in the Notice Period as mentioned in the Appointment Letter given to you.
• Also make out a list of items of Co.'s property in your possession and hand these over and obtain a receipt for the items you have handed over. This is VERY IMPORTANT.
• Request the HR guy to settle your dues in Full & Final and give you a relieving letter.
• If all this fails, yes then you will require a smart Lawyer to take up you issue.

Feel free to contact me anytime should you feel the need to do so.


Best Wishes,

Vasant Nair

Not only you, many IT company employees are making this mistake by not giving a resignation letter or providing information about leaving. Instead, they just walk out. However, they believe that the company should not take any action against them. How is it possible for a company that provides training and a hefty salary to tolerate this behavior? If the company does not provide an appointment letter upon joining, would the employee accept this?

You are hereby advised to contact your previous employer, explain your situation, and seek proper relief.

Dear Shri Sumant,

It is very clear from the opinions of our members that:

1) You should always stick to the conditions that you agree upon in the appointment letter as you have signed it as a token of acceptance. Any violation thereof should always be supported with some legal/logical justification to stand later on.

2) Now, as you have received the legal notice, prepare to respond to it in consultation with a legal expert and prepare for two scenarios:

Firstly, if you find things in your favor, please respond to the legal notice in a humble manner and then call up the respective HR to seek a compromise to resolve it.

Secondly, if you do not find things in your favor, first speak to the HR, try to understand what they want, and why they are doing it. I am sure none of the HR departments are available to entertain and handle more such issues.

Handle it tactfully, resolve it with a little compromise, and continue with your current job with the learning that you should always stick to the simple and regular process of leaving an organization. Circumstances might be challenging sometimes, but organizations and you as a professional are supposed to be disciplined entities.

Dear Sumanta,

If you follow the course of action suggested by Vasant Nair to solve your problem, please note that if you were working below the managerial category and indulged in several misconducts as enumerated in Rule 14 of The Industrial Employment (Standing Orders) Central Rules, 1946, the company must first conduct an inquiry, let the charges be proved, and only then can the company impose a fine/penalty.

Secondly, if you have not resigned and have been away from your service for 4 years, why has the company not followed the principle of natural justice by issuing a charge sheet and conducting an inquiry?

While discussing your issue with your advocate, please bring to his notice that in Industrial Employment, terms of the contract are not only expressed but also implied.

Don't lose hope.

All the best.

NKJ

Disturbed

Moreover,

Dear Sumanta;
I understand, when one is seeking legal advice on certain legal issue, he/she needs to open all his/her cards for right kind of advice. In this case, you need to attach a copy of your appointment letter or an agreement with the company, company's rules and regulation about keeping your 12th original certificate, a copy of your resignation letter, a copy of the notice issued by your previous company. I think any an advocate will require some basic documents, before advising you on the issue. Otherwise all advices will be vague, and will not help you much. This group has several learned and intelligent members, with legal as well as HR background. I believe, you need to know how to present your case in best manner, to yield best results, without spending anything. Otherwise your efforts and others advice will be in vain.
His Blessings;
Sharad

How much is it compulsory to give the one-month notice period during resigning time?

Harish

Dear Sumanta,

Have you joined another company? If not, please send a resignation letter now. Also, ask for a release from the services and payment of the notice period, as per your employment agreement. This will prevent you from being in a situation of dual employment. Additionally, request the return of your original 12th-grade certificates. Approach the matter diplomatically at first and try to resolve it amicably.

Directly communicate with the HR department and request a release. You have worked for 4.8 years with this company, so they should be supportive.

If you do not receive a supportive response from the company, seek legal advice and address the situation through legal means.

You have lost gratuity equivalent to 2 and a half months' salary due to a shortfall of 4 months in your service.

You have been consistently pressured by your seniors to leave the role to avoid gratuity payment, which was done intentionally under management's direction.

They have retained your original certificates as "MORTGAGE," which is against common practice.

Further suggestions will be provided by legal experts.

DO NOT WORRY...! Handle this proactively and stay calm.

Thank you,

If you are currently employed, do not disclose this information to anyone under any circumstances.

Kashi

Dear Sumanta,

There is nothing to worry about the legal notice. However, it's your mistake as you walked out abruptly without providing a notice period or a resignation letter. This behavior is common in many companies in such situations.

No problem, you can approach your previous company's HR department and explain your situation. Express your desire to be relieved. Remember to remain composed during the conversation and avoid mentioning any specific individual who may have harassed you. They might request you to return for a week or two to facilitate the handover process for the projects you were involved in. Simply comply if you have not yet joined another company. The HR department will assist you and offer full support in obtaining your relieving letter and certificates.

Until then, refrain from taking any action regarding the legal notice. Only consider issuing a response if the HR or management fails to address the situation adequately. Rest assured, they are unlikely to involve the police.

However, do not repeat the same behavior with your next employer or company.

All the best.

Regards,
Dinesh

Please remember, the company has sent you a legal notice. You need to respond to it through an advocate by refuting the charges made against you. This is a primary step and legally mandatory. Not responding could result in your evasion of legal proceedings as per the India Civil Procedure Code. Contact your advocate first and reply to the legal notice.

V V Prasad CS

[QUOTE=V V Prasad CS; 1024785]

Can you put extracts of the notice stated to have been received by you on citeHR so that specific advice can be given to you?

May I also advise you to include specific queries about what you need for personalized advice.

Wishing you all the best,

V V Prasad CS

Let us be aware of the legal requirements on one hand and also have our hands clean so that we can work out a solution very simply.

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Let us be aware of the legal requirements on one hand and also ensure our hands are clean so that we can easily work out a solution.

Dear Mr. Sumanta and all others who have similar ideas,

I agree with Vasant Nair and his well-considered advice explaining the whole process. Don't try to fight your adversary. Your company would find it suitable to fight with you to establish a signal for others who wish to leave abrogating their part of the contract of employment. If one bird leaves and is not shot in mid-air, every other bird will leave the sanctuary. What you have done is incorrect, both on moral grounds as well as on technical grounds. You can find your answer in your conscience. Look at the trouble you would put your company by not fulfilling the notice period. You just can't walk away and so many of us criticize the company for their "hire & fire" policies when we as employees fail to live up to some standards of ethics and moral values.

My suggestion would be that you meet the right HR guy (who can take the decision), talk to him politely, and make amends for what you have done. Bravado will not do. If I were your employer, I would do the same thing that the company is doing to you. Your reputation in the market would be destroyed if you wish to "see to its end." Take my advice - "patch up now"! Good luck.

EIRVALSA