No Appointment Letter / Letter Of Intent

Hi, I am a Company Secretary by profession. I was appointed as a CS in a private limited company two months ago, and this is now my third month.

The registered office is in Mumbai, and I am based in Mumbai, but the administration is managed from the state of Karnataka. The company has not issued me an appointment letter or a letter of intent. The PF registration is in the state of Karnataka.

When I requested an appointment letter, I was asked to prepare and submit it myself. However, to date, the management has not issued the aforementioned letter.

I have been instructed to report to either the MD or the consultant of the company, but typically, I report to the consultant only.

I encountered issues receiving my salary for the second month. After discussions with the management, I received my salary on August 12, 2011. The company deducts provident fund and professional tax from my salary but does not provide me with a salary slip.

There seems to be a lack of proper coordination between the executives and the management.

I am unsure whether, without an appointment letter, letter of intent, or salary slip, I can be considered an employee of the company. Additionally, I do not sign the muster roll.

Given these circumstances, I am considering resigning. Should I submit a formal resignation letter, or would it be sufficient to verbally communicate my intention to resign and then leave the company?

I would appreciate your advice as I believe I am currently not being involved in any company activities and am essentially wasting my time.

Instead of taking such an action, give them a letter of your intentions:

1. A formal letter of appointment would be required to carry out the job.
2. The job requires signing various documents, and hence it is appropriate to have some authority document, i.e., a letter of appointment.
3. Salary issues shall be resolved as soon as possible.
4. If the management finds it difficult to pay the salary and issue the letter of appointment, it is appropriate to leave the organization.

Thanks, Mr. Jain.

I had coordinated the salary matter with the Consultant (CA) of the Company, where he resolved the issue by discussing it with the MD last month. However, there has been no communication regarding the issuance of the salary slip.

To date, the company has not provided me with an appointment letter. Therefore, I intend to write a letter to the company expressing my desire to continue working with them as a Consultant for company-related matters and not as an employee. I propose that the company pays me a retainer fee for my services.

Your advice on this matter is greatly appreciated.

I suggest that whenever you mention in the mail, put those things on paper. Say that you have not received any appointment letter, no muster rolls, and no payslip. Also, mention that you are reporting to a consultant and not receiving your pay on time. Considering all these factors, you are not interested in continuing and will submit your resignation letter to close the matter instead of quitting the company after verbal communication. Even if they take any actions after some time, ensure you do not leave any room for ambiguity.

Thanks and regards,
Kameswarao

Thank you for your response, Mr. Kameswarao.

It appears that the Managing Director listens to the advice of the Consultant (CA). When I discussed the aforementioned issue with the Consultant, I was informed that I could make a decision after six months or possibly a year.

Gauri,

It appears from your communication with the company that they are neither professional in their approach nor willing to be so. The working conditions are not conducive for maintaining a professional relationship with them. It is up to you to decide whether to continue with them or leave the organization.

The consultants of the company come from a financial background and lack exposure to basic employment laws. In summary, it is a company that operates in a rather informal manner; they may make verbal promises but are unwilling to put them in writing, making it unpredictable whether they will fulfill their commitments.

Well said, Mr. Anurag. Yes, I also feel the same about Lala Style company. They want the CS just to comply with the Co's Act, but actual involvement, they are silent. That's the reason I was thinking of providing consultancy services, as I think as a professional, am I doing justice to what I am actually doing.

Dear Gauri,

My opinion is, "You must leave the company as soon as possible." I had a similar experience in HR. There is no worth in giving your services to a nonprofessional organization!

Dear Gauri,

I have a similar case in my company. I have been trying to get our HR to issue me an appointment letter, a job description, etc., since I was only verbally "transferred" as a trainer. Whatever your decision is, whether to stay or not, make sure that you have made your complaint (or whatever you may call it) clearly to them IN WRITING through email or in print, and make sure it has a "RECEIVED" stamp on it. This will serve as your evidence when litigation becomes necessary.

Good luck,
Sandy

Gauri,

This company is not worth pursuing. Do not even consider associating with this company as a consultant. After your consultancy job, if they do not pay you the "consultancy charges," are you planning to discuss it with your MD or another person?

Secondly, I do not believe in keeping evidence like having a letter with a "received" stamp on it. What is the intention behind it? Do you aim to go to court and file a suit against the employer? Our time is precious. You have only two options: continue or quit. If you choose to continue, accept whatever is happening. If you want to quit, make the decision promptly. Choose what is best for you.

Balaji

Thank you, Mr. Balaji, for rightly highlighting that our time is precious.

I was actually surprised when I asked for the appointment letter, and I was requested to draft and submit it myself.

My queries are:
1) In circumstances where an appointment letter is not issued, how can one provide evidence of being appointed in the company?
2) Should I submit my resignation in writing or simply inform them verbally?
3) Additionally, they make payments via cheque, deducting PF and PT, but do not provide a salary slip.

Regards

Dear Gauri,

Your best decision is to switch over to a good job where you get all benefits. Until then, retain. Money is also an important factor for which we work, so don't quit. Wait to get a new job and join the organization stating you are sick, availing your pay for the month.

Regards,
Sekhar

Dear Gauri,

As everyone mentioned, this organization is not professionally managed. Since you mentioned they have deducted PF from your salary, ask them to provide the PF number (this can be checked with the PF department). If they are able to provide the PF number, it is sufficient proof of your employment. By the way, is your salary credited to your bank account or paid in cash?

After considering all your points, I can say that you may not learn anything except unethical practices if you are willing to continue there. My sincere advice is it is better to submit a resignation letter mentioning all your points. Clearly state that these are the reasons for resignation, and obtain acknowledgment from them (with a seal and signature). You are a qualified professional, so it is always suggested to be with professionally managed organizations for your career growth.

With Best Wishes,
Srinivas

Thanks, Mr. Srinivas.

This is my third month in their company. They make payments by cheque. Being a qualified professional, I think I must resign in writing even though they have not issued me an appointment letter.

Regards.

I think Sandy is right!

Do some paperwork first of all; without it, you may fall into trouble in the future. It's better to leave such a company. Tell all HR community members about that company so that another Gauri should not be trapped in such cases.

Dear All,

As it's my third month in service and no appointment letter has been issued, may I submit my resignation with immediate effect without a notice period, or should I request to be relieved?

Regards.

Dear Gauri,

Please submit your resignation letter with all your points. There is no obligation for you to serve notice as you have not signed any agreement, nor have they issued any appointment letter to you. You can quit at any time without serving notice, but submission of the resignation letter is suggested.

With Best Wishes,
Srinivas

Dear All,

As this is only my third month in service, I am wondering if tendering a resignation letter is sufficient, or if a relieving letter from the employer is also required.

Regards.

Dear Gauri,

If they give a relieving and Experience letter, it's great. Otherwise, for all purposes, you can use your resignation letter as a relieving letter (ensure your resignation letter includes your joining date and last working day). Acknowledgement with their seal on a copy of your resignation letter is a must for any purpose.

With Best Wishes,
Srinivas

Dear Gauri,

You are a very well-qualified professional; probably, this may be your early stage in your career. It is very easy for you to be in a position to understand the company and its goals better. Try to understand the improper signs at an early stage and proceed. Your profession calls for an utmost high level of maturity.

All the best in your future endeavors.

[QUOTE=k.mukundraj;1644122]Dear Gauri,

You are a very well-qualified professional. Probably, this may be your early stage in your career. It is essential for you to understand the company and its goals better. Try to recognize any improper signs at an early stage and proceed. Your profession demands an utmost high level of maturity.

All the best in your future endeavors.

Thanks, Mr. Mukund.

It is true that my profession requires an utmost high level of maturity. It is crucial to take immediate steps instead of waiting for six months before making a decision.

Regards.

I am also suffering from the same issue, but the problem is I am in the United Arab Emirates where it's not that easy to quit a job. You are quite lucky, and I will definitely suggest you resign from such an unprofessional organization.

Best of luck!!

Dear Gauri,

You have been correctly advised by some colleagues through their post that you should put everything in writing, spelling out your specific grievances and your inability to continue in the employment of the company. Since there is no written contract in existence, you are not bound to give any notice to the company. Ask them to pay your due salary and any other dues and leave ASAP. There's no reason for you to stay on a moment longer (even if it is at the risk of not receiving any dues!!!).

Best Wishes,
Vasant Nair

Hi Gauri!!!

In my opinion, it is an absolute chance for you to convert the present scenario into success. How? Please follow the guidelines.

Type your letter showing your acceptance as a full-time/part-time (as the case may be applicable) consultant for the company (not as an employee) where you are presently working. Mention all terms and conditions favoring you (like if part-time, I will visit your company once a week, etc.). Submit your monthly bill to the company and treat your company as your client.

By doing this, you will achieve:

1. You can start your practice by accommodating your present employment as a client.
2. You can engage an number of other clients.
3. You will be a well-known CS practitioner in your field.
4. Your income shall continue.

Now, you might be thinking, "Is the consultancy letter (voluntarily made/prepared by you) acceptable to your company?" Please do not worry. Certainly, they will accept. Talk to them fearlessly/smartly and persuade them by showing them that keeping you as a consultant is much cheaper than keeping you as an employee.

Draft your appointment letter yourself as a retainer/adviser/consultant and present the draft to your Director for approval. Once he approves the draft, have him sign the engagement letter (on the company letterhead) and start practicing.

Go ahead, don't worry!

Best of luck.

Sanjeev

Dear Gauri,

Please write an official email to your MD and cc your consultant. Based on my understanding from your email, I believe you are not a payroll employee of the company. The company likely hired you as an outsourced employee. I faced a similar situation at the beginning of my career when I did not receive any official letter from the company. I then composed an official email to the HR and CFO of the company outlining all my concerns. I expressed my regret, stating that I could not continue the job. Soon after, I received a call from HR who reassured me. The very next day, I received all the official letters from the company.

Please consider this situation carefully. I empathize with you as I have experienced something similar in the past.

All the best. Don't worry; no employer wants to lose a good employee as finding the right person is challenging.

Regards,
Bem

You are wasting your valuable time in this organization. When you don't have any appointment letter or any letter of intent, there is no question of a resignation letter. I think the organization is treating you as a fresher, and when they don't keep any record of you, the question of a resignation letter is unnecessary.

Dear Gauri,

My suggestion is that you need not resign immediately. You should first search for a better job for yourself. While attending interviews, you can explain the real situation, and the interviewer will understand this kind of situation.

Regards,
P. Packiaraj

I do not quite agree with the suggestions of most of the members who have suggested to you that you are wasting your time and should resign immediately.

I would suggest you to resign only in case you have another job ready in your hand. Why waste time and precious income? Get a good job elsewhere and then resign. What is the hurry?

You are not wasting your time. You are definitely gaining some practical experience.

It seems you are working in a small company that does not have an HR department, HR systems, and processes in place. You can set them yourself. Make your own appointment letter. Take help from your friends to draft it. You can find samples/drafts on citehr itself. Make a letter and get it signed by your MD. Matter solved.

You are a qualified CS. Are you designated as a CS? Are you registered as a CS of the company with ROC? In case you resign, you will have to make sure to cancel your name as CS of the company with ROC.

Thanks, Mr. Sanjeev, for your valuable suggestion.

Actually, I had spoken the same verbally to the Consultant (CA) but he was reluctant to accept. But now I think from your above discussion that I better submit the letter instead of only discussing.

Please advise, sir, if instead of tendering my resignation if I submit a letter of acceptance as a Consultant of the company (because an appointment letter was not issued), then it means I am no longer an employee of the Company. Whether the acceptance of my letter is not required. Or is it like I am making my terms clear to the Company.

Furthermore, should I submit my letter to the Consultant of the Company whom I actually report to or to the MD of the company, because in any case, he is going to seek the advice of the Consultant or ask me to inform him of the same.

Then later, I will have to submit a draft of the appointment letter as an adviser/retainer/consultant.

Now the question arises, can I submit now with immediate effect, or shall I submit it next month?

Regards,

Gauri

Dear Gauri,

Whatever status your MD may accord to your consultant, your organizational structure can never indicate that you report to your consultant. Please maintain a direct relationship with your MD.

Always remember that your consultant is required to work in favor of your MD only. I suggest that you maintain your relations with the consultant solely for consulting on specific areas of concern.

In many instances, people elevate the consultant to an indispensable role. They may even route communications through the consultant when speaking to their own superiors. Consequently, the consultant slowly gains the opportunity to involve themselves in all functions, regardless of their expertise.

I have experienced a situation where a technical consultant gradually expanded their role to cover all aspects, including HR and Accounts. Despite the functional heads recognizing the consultant's lack of relevant knowledge, over time, they managed to gain the confidence of the MD or Chairman. Notably, this consultant had a significant ego and started challenging any employee who questioned their advice. They had the favor of the Chairman and even threatened to terminate me instantly. However, I countered this by resigning before any harm could be done to me.

Whether consultants are a blessing or a curse remains unclear to me. Take care.

Dear Gauri,

I was surprised to know that your organization is ISO certified. ISO certified companies must follow certain regulations and procedures. You also mentioned that you have a full-fledged HR department. Despite having an HR department and ISO certification, this company is hesitating and not willing to issue an appointment letter. It is surprising.

Please take necessary steps as I had stated in my previous replies if you want to resign from this company. I do not see any urgency to leave this job. Have another job on hand, and then take a decision to leave this company.

With Best Wishes,
Srinivas

Dear Gauri,

Submit a draft (which your company is supposed to give you to engage your consultancy services) of the engagement/appointment of a consultant/retainer for approval to your MD. Submit the draft's hard copy through his PA and one soft copy directly to him along with a covering letter in which you mention that your company shall benefit more if they engage you as a consultant. Show respect but do not be afraid to convey your thoughts to the MD, as he may not be as respectable a person as he represents, being part of a company involved in questionable practices (not providing appointment letters to employees). Do not concern yourself with any VP/senior staff; do not share your thoughts among your staff. Directly attack your plan of action.

Upon acceptance and appointment as a consultant, inform the relevant Registrar of Companies.

Regards,
Sanjeev

---

Thanks, Mr. Sanjeev, for your valuable suggestion. I had actually discussed the same verbally with the consultant (CA), but he was reluctant to accept. Now, from your discussion above, I believe it would be better for me to submit the letter instead of relying solely on discussion. Please advise if, instead of tendering my resignation, submitting a letter of acceptance as a consultant of the company (due to the absence of an appointment letter) would mean that I am no longer an employee of the company. Is the acceptance of my letter not required, or am I simply clarifying my terms to the company?

Furthermore, should I submit my letter to the consultant of the company whom I report to, or to the MD of the company, as he will likely seek the consultant's advice or instruct me to inform him of the same? Subsequently, I will need to submit a draft of an appointment letter as an adviser/retainer/consultant.

Now, the question arises: should I submit it now with immediate effect, or should I wait until next month?

Regards,
Gauri

You need to first decide what you want to do: work with the same company or change the company, work as an employee, or as a consultant.

Do not follow the same wrong methods of your company and management. You are different; you are professional. Spell out, write, and communicate all your problems and concerns to your reporting manager or MD. Keep the consultant also in the loop, always cc him. Set right your expectations in front of your management. Do not assume anything.

You are attending the office, working there, receiving a salary, and having PF deducted. These all simply mean you are an employee and the company is the employer. Whether or not an appointment letter is issued to you will not change your current status as an employee. The only difference is that your terms of appointment may change, to some extent.

If you have an HR department, then simply follow up vigorously with your HR manager for the appointment letter and other concerns.

It appears to me that, since you are away from the main office of your company and MD, there is no communication, coordination, and attention to your issues and concerns. Are there any more employees like you in Mumbai? What is their plight?

ISO Certification has no inherent meaning. There are companies with thousands of employees who are ISO certified, and the same ISO certificate is also offered to a small eating joint selling bhel and chaat. It only certifies that certain work processes are defined and being followed. However, certification is based on a test-check basis, and there is never 100% checking or audit. Do not be under the impression that being ISO certified means everything is in order. There are also many ISO certified government offices. Does that mean they are the ideal offices in all respects?

Hi CS!!!

You are welcome. For your information, I have completed my 30 years in Corporate HR/IR & Legal department of a few top MNCs. Apply your mind with positive thinking and prove that you are a true professional. After all, always aim for a win-win situation to seize an opportunity and succeed in business. All the best....

I was planning how to convey to the MD of our Company. You have given me directions for executing my plans.

Regards.

My dear Gouri,

Precondition of service is an appointment letter. It also spells out the conditions of your service. In your case, non-issue of the appointment letter casts no obligation on you to tender a resignation letter and to comply with the conditions while tendering the same before leaving the service. You should immediately leave the job and the company with no obligation from the company. However, still, if you feel so, you may send a letter to the CMD of the company regarding your leaving the job/company.