Can a Company Issue a Termination Letter After Accepting Resignation and Bond Payment? What Can My Friend Do?

Issue with Relieving Letter and Potential Termination

My friend joined an MNC and was sent abroad for training after signing a bond. On his return, he submitted his expense bills. As he got a better job in another company, he resigned. He also paid the bond money and notice pay, and the company accepted his resignation. Now the company is not giving a relieving letter. When contacted, HR says there is some problem with his expense bills. Informal sources indicate that the company is planning to issue a termination letter.

Can the Company Issue a Termination Letter?

Can a company do this, considering they have accepted the bond money as well as notice money, accepted the resignation, and even given a farewell party? Moreover, he has been given no chance to explain his case.

Available Remedies

If the company does proceed with a termination letter, what remedies are available to my friend? Please provide an answer.

Dear Mr. Naresh, here, there is no problem with the abroad training program. I got a good job in another company, resigned, and my resignation was accepted.

There may be a policy in any office that, in the case of any pending disciplinary case against an employee, until it is cleared, the employee cannot be relieved even if they make payment of the notice pay and any other bond amount.

From what I understood from your wording, the disciplinary case is that your friend has claimed excessively and has been caught by the auditing team. Therefore, as per the auditing team's instructions, HR might have initiated disciplinary action for making falsified claims for the abroad training program, which your friend will have to face.

The question remains whether the falsified claim will lead to termination.

If it is proven that he consistently and repeatedly made false claims, then termination could be a possibility. However, HR must provide material evidence to your friend for this.

In this case, the previous employer can recover the full travel expense bill with some fine and interest, as deemed fit, and then relieve him as resigned, which would be the correct approach. At least the company would benefit from paying him the notice pay and other terminal benefits. If they choose to terminate him, then your friend must be paid the notice pay and other benefits.

Regards.

Dear Naresh, giving bond money or notice money is not a matter at all. I agree with Mr. Bhaskar; why are they not giving a relieving letter? Has your friend found out the reason? Another thing, by informal sources, do you mean coworkers? How is your friend believing rumors? If he is terminated without reason, he can file a case against his previous company. None of the companies are allowed to lose their company money or their properties, so ask your friend to think before acting.

I feel that you have really allowed your fertile imagination to take you on a wild trip, and you have drawn several baseless inferences and offered corresponding suggestions that seem to be quite out of place. Do you not think that instead of creating your own inferences, it would have been more appropriate for you to ask for more information and details before arriving at any conclusion? You have already decided that the concerned employee has repeatedly made falsified claims and will have to face the music for his misadventures. Do not jump the gun, validate all the information you need to get, and then offer advice.

Best Wishes,

Vasant Nair

Dear Mr. Naresh,

Here, there is no problem with the abroad training program; he got a good job in another company, resigned, and his resignation was accepted. There may be a policy in any office that in case of any disciplinary case pending against the employee, unless it is cleared, the employee cannot be relieved even if they make the payment of notice pay and any other bond amount.

Here, the disciplinary case is (as I presumed from your wording) that your friend has claimed excessively, which has been caught by the auditing team. So, as per the instructions of the auditing team, HR might have initiated disciplinary action for making falsified claims for his abroad training program, which your friend will have to face. But whether the falsified claim will attract the punishment of termination is the only question.

If it is proven that he continuously and repeatedly made false claims for times, then it could be possible, but for that, HR has to provide material evidence to your friend. In this case, the previous employer can make a full recovery of his travel expense bill with some fine and interest as deemed fit and relieve him as resigned, which would be the correct way. At least, the company relieving him would benefit from paying him the notice pay and other terminal benefits. If they terminate him, then your friend must be paid the notice pay and other benefits.

Dear Naresh,

Your friend should first and foremost try to find out the exact reason for the delay in clearing his final documents. As you have stated, HR has informed that there are some problems with the expense bills. Your friend must take the initiative and approach HR to get whatever issues there are sorted out. It might simply be that he has forgotten to attach some bills or invoices.

Either way, he should not listen to "informal sources" and should follow proper procedures to get his relieving letter. If, however, the former employer refuses to issue the letter and instead terminates him, your friend can always pursue the matter legally. The only thing he would need is a copy of his resignation letter accepted and acknowledged by HR of the previous company and receipt of the bond money payment that he has made.

The company cannot terminate him without due notice and giving him a reasonable chance of presenting his side of the case. So, ask your friend to take things positively and work with HR of the previous company to get his name and documents cleared.

Thanks,

Gaurang

Dear Mr. Vasant Nair, I request you to read my reply fully and understand what I have written.

Clarification on "If Clause" in HR Actions

I have added an "If Clause" in the sentence for continuous, repeated, and false claims multiple times, and for that, HR has to provide material evidence before taking action against the individual. This implies that simply removing him from his roles is not the correct course of action. The company cannot terminate anyone solely for making falsified travel claims.

I hope this clarification is clear.

Additionally, I would like to mention that repeatedly asking questions without providing feedback can demotivate members, leading them to refrain from asking questions. Therefore, I have posted my reply.

Mr. Vasant Nair can read and try to understand my response, and if there are any further doubts, he can raise them in the open forum for all members to help clarify.

Thank you, Mr. Vasant Nair, for seeking clarification on my post. I hope this provides a clear picture of our response to the open forum.

Regards

I agree with whatever you (Gaurang) suggested here, and I am also adding some suggestions. All communication should be made in writing; no verbal communication. Furthermore, give a reminder letter about your previous correspondences.