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Does he has anything in writing or it was all verbal…………. Ask him to check from the company about the details till the date he was on the roll and about his releving n all…….Tell him to approach some senior person in the organization…if not then directly write an email to the CEO of the Company or some Director preferably HR & his Departmental Head and ask for an opportunity to clarify his position….. if nothing works out then he has no choice but to approach the labour court for settlement…….
This is Insane from EDS. However it should even be your responsbility to escalethe issue to an senior person, so that no one else could face such an advent situation...It would be even better if you explain the issue to your colleagues,,,, as an group could be more supportive to have an decision from the organisation...