Can My Employer Sue Me, If It Looses Its Client On My Resignation?

Dear Sir/Madam,

This is Sanjay Singh.

My company is a private limited company registered in Chennai, Tamil Nadu. They have a 2-month notice period or payment in lieu.

I gave them 1 month's notice and am ready to give 1 month's payment as per company policies. I was working for their client for the last 7 months. When I resigned from my company, I also discussed the same with the client. However, my company did not inform the client about my relieving, but the client accepted my notice and was ready for 1 month's payment and 1 month's notice.

They informed their client only 7 days before my leaving date. The client was unhappy with this as they had faced a similar situation before. Even though they assured the client that my replacement would join soon, nothing happened, and I had to be off.

Now, they are not providing me with my relieving letter and are asking for 3 months' salary, stating that the client will not pay them. The client has severed all relations with my company.

My company is sending me emails threatening legal action against me, blaming me for losing their client.

Please suggest a course of action as I am in big trouble.

Thanks,

Sanjay

Dear Sanjay,

You have written a long post but missed a few important points. These are as below:

a) When you submitted your resignation, how did you submit it? Did you give a hard copy to HR and obtain their acknowledgment on the duplicate copy?

b) How did you route your letter of resignation? Did you route it through your HOD?

c) Have you received a letter from your company on the "acceptance of resignation"?

You can sue your company for letting you down, but the strength of your position depends on the replies to the above questions.

Thanks,

[Dinesh V Divekar]

Hello Sanjay Singh,

Further to what Dinesh mentioned, there seems to be some contradiction in the details given by you. You say that "......and the same I discussed with the client also......" and again mention that "They informed their client before 7 days of my leaving date".

Granted that your company didn't inform the client officially, but what was the client doing until the news came officially to them, when they knew that you were leaving and most likely the date of your getting relieved? Why didn't they take up the issue with your company? There seems to be more than meets the eye here.

Please give all details so that the members can give realistic and implementable suggestions.

All the Best.

Regards,
TS

Dear Sanjay,

Mr. Dinesh and Mr. TS are absolutely right. In case you have approached your client personally to inform them that you are signing off from your duties, then it is not at all ethical.

Now coming to the second point on whether your employer can sue you or not. So, you have resigned on either of two conditions:
1) You were dissatisfied with your current position, profile, reporting boss, or working environment.
2) You have secured a more favorable or stable position.

In both cases, you have the right to decide what is best for your future, so they can't sue you on these grounds. However, if you were in a high position where you had direct access to sensitive information related to your organization or their working strategies, then they can go for legal action.

In my opinion, a good HR person is one who has a "pair of hearing ears," who believes in discussing the matter rather than going for unnecessary notices and all.

Regards,
Atul

Thanks to all for the replies, and I am sorry for not providing all the details initially.

1. I gave notice by mail and also sent a hard copy by post.
2. They sent me an email saying that they cannot release me before the 20th of September, as I had requested to be released a little earlier.
3. In the email, they agreed to my leaving.

When I informed the client, he requested a replacement from my company, but my company did not take it seriously (the client mentioned this in his email to the company).

Please let me know if you need more information. Again, I apologize for not providing complete details.

Hi Sanjay,

Based on the information that you have provided, it appears that the Client has cut off relations with your Company because of a loss of faith in your Company's ability to deliver services. The following can be the possible reasons:

1. Your Company informed them very late about your resignation.
2. Your Company failed to provide a replacement.

If you have resigned as per the terms, conditions, and process mentioned in your appointment letter/Company policy, then the Company cannot hold you responsible for the loss of business.

I find it completely absurd to withhold a relieving letter by blaming an employee for the loss of business.

If you are sure that you had absolutely no part in influencing the client to pull back the business, then you should make a request in writing to your Company to issue a relieving letter. If they don't act on it, collect all the communication that you have had with your Company regarding: a) Your resignation, b) informing the client about your resignation, c) regarding your relieving, d) your requests for a relieving letter, and contact the labor officer.

Best Regards,

Ritesh Shah

Dear Sanjay,

Since your departure is as per company policy, they can't sue you. Furthermore, you can write an email while keeping your existing HR in confidence.

Thanks,
Shyamal

Your employment terms are with your company, and they are paying you the salary. Your resignation has nothing to do with your client company. Check your appointment conditions, especially the notice period clause.

Pon