Ex-employee takes Tech Mahindra to Telangana HC over relieving letter issue
Hyderabad: Tech Mahindra Limited, a major IT company, has been issued a notice by the Telangana High Court regarding a writ petition (WP 29726 of 2024) filed by former employee V. Balakrishna. The case centers around Balakrishna's claim that he was not provided a relieving letter, which is his legal right under Indian labor laws.
Balakrishna joined Tech Mahindra in November 2023 as an Associate Technical Support on the U1 Band. In February 2024, he was abruptly informed that he had not passed an exam and that his last working day would be February 28, 2024. After leaving the company, Balakrishna did not receive a relieving letter, prompting him to approach the Joint Commissioner of Labour (JCL) in Ranga Reddy District on April 1, 2024. Despite multiple notices and informal meetings, the JCL informed Balakrishna on July 27, 2024, that they were not the appropriate forum to resolve the issue, suggesting he seek recourse elsewhere.
On July 29, 2024, Balakrishna, through his advocate Vijay Gopal from the Telangana High Court, issued a legal notice to Tech Mahindra requesting the relieving letter. The company responded by issuing a relieving letter; however, Balakrishna contends that it was presented in a discriminatory manner. The letter included a reason for his exit as an approach not taken with other former employees, raising concerns about fairness in the process.
The relieving letter, also known as a Certificate of Service, is considered a statutory right for employees in both public and private sectors, as stipulated by the Industrial Employment (Standing Orders) Act of 1946, alongside the 1946 Central Rules and the 1953 Andhra Pradesh Rules. However, Balakrishna alleges that the JCL and the Labour Commissioner of Telangana have neglected their duties in this case for reasons that remain unclear.
Given the discriminatory nature of the relieving letter issued to Balakrishna, a writ petition was filed, which was heard on October 25, 2024. The Telangana High Court has since issued notices to Tech Mahindra, the JCL, and the Labour Commissioner of Telangana, requiring them to explain their positions. The next hearing is scheduled for November 8, 2024.
The issue of relieving letters in private firms has become increasingly concerning, with reports of companies using these letters as leverage to extort money from employees, demanding fees that can range from ₹20,000 to ₹30,000 for their issuance. It is important to note that relieving letters must be provided regardless of whether an employee resigns, is terminated, or if the company shuts down.