I joined an IT company in April 2013, signing a 2-year contract for ₹1 lakh. It’s ending on March 2015. For the past six months, I haven’t been assigned any projects. The company trained me for ₹32,000. I resigned with my last day being November 20th. They’re demanding the entire ₹1,32,000 for the remaining four months, even though I’m willing to pay for the training and a pro-rata amount for the remaining period. They refuse and won’t release my relieving letter until I pay, impacting my new job starting on the 24th. Is there a way to pay them now, get the letter, and then seek legal recourse for the overcharged amount? Could this affect background checks for my new company? I need a legal solution to this situation.

Apni Law
Apni Law
Law Forum › Category: Labour & Service › I joined an IT company in April 2013, signing a 2-year contract for ₹1 lakh. It’s ending on March 2015. For the past six months, I haven’t been assigned any projects. The company trained me for ₹32,000. I resigned with my last day being November 20th. They’re demanding the entire ₹1,32,000 for the remaining four months, even though I’m willing to pay for the training and a pro-rata amount for the remaining period. They refuse and won’t release my relieving letter until I pay, impacting my new job starting on the 24th. Is there a way to pay them now, get the letter, and then seek legal recourse for the overcharged amount? Could this affect background checks for my new company? I need a legal solution to this situation.
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Apni Law Staff asked 3 years ago

I joined an IT company in April 2013, signing a 2-year contract for ₹1 lakh. It’s ending on March 2015. For the past six months, I haven’t been assigned any projects. The company trained me for ₹32,000. I resigned with my last day being November 20th. They’re demanding the entire ₹1,32,000 for the remaining four months, even though I’m willing to pay for the training and a pro-rata amount for the remaining period. They refuse and won’t release my relieving letter until I pay, impacting my new job starting on the 24th. Is there a way to pay them now, get the letter, and then seek legal recourse for the overcharged amount? Could this affect background checks for my new company? I need a legal solution to this situation.

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Apni Law Staff answered 3 years ago

You can pay the amount demanded to get your relieving letter as it’s crucial for your new job. You can then pursue legal recourse against the company for overcharging, citing your lack of work assignment and the pro-rata calculation. However, it’s important to consult a lawyer regarding the specifics of your case and potential impact on your background checks.

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