Terminated from a Job: Will You Still Get a Relieving Letter and Final Settlement?

sari.pavani@gmail.com
Hi, can anyone tell me if someone terminated from a company will receive the relieving letter and final settlement? Thank you.
korgaonkar k a
A termination letter itself serves as a relieving letter. There is no need to issue another letter relieving someone from services. Final settlement is a right of an employee who leaves the service for any reason.

Regards.
sari.pavani@gmail.com
Thank you so much for your quick response. Kindly clarify the following for me:

- When an employee is terminated, will they receive a notice?
- For example, if the employee has been working for the company for 2 years, will the company give them a chance to provide an explanation? Will they show evidence for the reasons they want to terminate the employee?

Thank you for your assistance.

Sincerely,
Regards
akshaye
Based on your response, I was wondering if the Termination Letter itself is considered the Relieving Letter, then how would it help the terminated employee with a new job? According to me, the new employer will be apprehensive about hiring this person because the Termination Letter would provide all the details, including the reason for why he was terminated.

Provision for a Different Service Letter

Isn't there any provision for a different Service Letter that would confirm that he worked from xx date to xx date in xx position? I mean, people do make mistakes, but they would obviously learn from their mistakes, right? Why penalize them? I somehow feel this is unfair. If the current organization terminated him, that's okay, but why create problems for his future prospects?

Please share your thoughts.

Thanks
launchpad
I think there is confusion over the word "Termination." It is not a routine term to be used for relieving a person from their services. Termination is only given when there are allegations against the employee that are proven. A termination letter is a serious document that closes the doors for a person in their career.

A relieving letter is not issued in cases of termination since termination is immediate. When a person submits their resignation or when the company, for its own reasons, relieves the employee, a relieving letter is issued, and the accounts are settled.

Normally, if allegations against a person are proven, they are asked to submit their resignation letter, as termination can negatively impact their future and benefits earned.
B K BHATIA
Notice Period and Termination Practices

There is no concept of a notice period when someone's services are terminated by the management. Termination can be on grounds of inadequate performance or lack of discipline. However, if termination is for right-sizing the organization to meet business objectives, it should be a fair (though not mandatory) practice to give one month's notice to enable an employee to find an alternative job.

Issuing a Relieving Letter

There is no bar on issuing a relieving letter, although the organization can mention in the relieving letter that the employee's services were terminated with effect from dd/mm/yyyy on XYZ grounds. Mature organizations, however, prefer not to mention the termination in the relieving letter, with the intention of not imposing a lifetime bar on an individual's employment. Additionally, mature organizations seldom invoke the termination clause; they prefer to ask an employee to resign, which is a better option to deal with non-performers. However, a non-performer may hesitate to resign, being fully aware of their market worth. In such cases, the organization has no option but to terminate the services.

Full and Final Settlement

Regarding the full and final settlement, it must be done in all cases of termination or forced resignation since the wages due for the period already served cannot be denied to an employee who obtains a clearance certificate from all sources before exiting. When an employee does not owe anything to the organization, there is no logic in not settling their accounts within a specified period (say, 2-3 months).

Any separation must be done with goodwill, a cardinal principle in all human relationships.
akshaye
Thank you, Mr. Raj Rajender. In fact, even I am trying to find appropriate answers related to a termination case. I had posted a new message a couple of days back explaining a situation. I haven't seen anybody respond to that. I guess it was too lengthy when I explained the entire sequence of events.

Anyway, let me be very short and crisp with my question to all the seniors on the forum:

1. What should a person do when he is terminated from employment on ethical grounds?
2. How can one find new employment?
3. Should one just write off that length of service? If yes, then I wonder how he can justify that period?

Any expert advice would be highly appreciated.

Many thanks
B K BHATIA
Under the circumstances, the only alternative before you is to approach your management with all humility to help you with an experience letter so that the period you have served with them is adequately covered. I am sure your management may condone your non-ethical behavior and may not like to interfere with your future career. No pressure tactics work in such cases. You have to literally beg for help; no legal channels can truly help a person if their termination is on moral grounds unless you can prove that you were not a defaulter. It may be good to remember that organizations are more powerful than individuals.
nathrao
I agree with what learned member Raj Rajender has written. Many times, termination occurs because an employee is not willing to conform or is obstructing the wrong practices intentionally being followed. If you do not go with the flow, you may find yourself getting terminated. There are many pitfalls faced by honest men and women in a corrupt system. Cases of honest and capable employees being sidelined and even terminated do occur. It is indeed a tough decision to make. If your relieving letter is a termination letter, then further employment becomes more difficult.

Human Egos and Workplace Dynamics

Human egos are really fragile, and bosses may not like their juniors outshining them. However, sometimes you do get bosses who promote capable juniors, but juniors need to play diplomatic and smart roles to avoid overshadowing their boss. It is all a psychological game. An employee has to be calm, patient, and focused on their work and be a team player to survive in such environments.
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