After going through the whole episode, I really found the importance of an advice my parents give to me, do not work on something of which you have no knowledge.
They say that having no knowledge will hamper the success; but half knowledge is extremely dangerous.
I would really like to emphasis that in helping out your friends and colleagues do not overstep and cross the boundaries. There are certain tasks assigned to each one of us and honestly though they all look similar tasks, they would be different as the details would differ.
We can help others by suggesting and giving them ideas, but doing something on behalf of someone, especially when it is not your KRA can back fire anytime.
What is done can't be undone. But we can always learn from it.
A relieving letter is issued to a person to re-emphasize the fact that the person is now no longer associated with the company and that the relationship has been mutually revoked for whatever reasons.
As far as my knowledge goes, there is no need of giving relieiving letter separately.
Now to be clearer, though it seems that the person was just trying to help the friend of his and he didn't realize that he would be liable for it in future, he was just being punished out of his innocence or his empathy to help.
But if you look at it from the company's and the employee's point of view -
The employees were mailed that they're selected for the said position.
After recieving this mail, any one would stop searching for the job further.
If the people were somewhere working, they must have to prepare for relieving and might have already put their papers down and hence are now jobless.
They had been following up with the company seeking their joining dates, and the authorities of the company are not aware of this scene.
Obviously the company cannot say that it was a fault of its employee so sorry. They have incurred some loss. And yet, financial losses might be recovered in some time, but they also lost their goodwill in front of those candidates.
Those 4-5 candidates would share their this episode that the company ditched them and said they are selected and then never gave joining dates to all their friends and family, who in turn would spread it further, and this will spread like a wild fire.
It is not that the company is not right in terminating the employee.
Sometimes it is unfortunate that we learn lessons in a tough and hard manner.
Yet lets wait for some advice from seniors. Perhaps they can take it in different way and can help out. I am unable to see any hope in this.