Terminated Without Written Notice: Can They Still Get a Relieving Letter and Final Settlement?

I am working as an HR executive. Can you please clarify my doubt below? If someone has been terminated by the company and has not received any written mail from the company, will they be eligible to get the relieving letter and final settlement from the company?

Thank you.

Whatever amount or perquisite is due on an employee's account, it has to be paid. Merely terminating an employee does not give the employer the power to stop all payments due to the employee. Issuing a relieving letter is not mandatory, but it is solely up to the employer's decision.

Full and Final Settlement

As part of the full and final settlement, the employee is eligible for the balance of days of salary, payments against accrued earned leave, bonus, and notice pay if the employee is terminated for reasons other than acts of indiscipline, embezzlement of the company's property, or funds.

Warm regards,
Umesh Chaudhary
[Email Removed For Privacy Reasons]

Has the employee been removed on the grounds of poor performance? If yes, what efforts has your management made to elevate his performance? Was he given sufficient warning for his poor performance? However, if the employee has already been removed, then it is binding on management to pay him his legal dues.

If it is on the grounds of indiscipline, then it is important to terminate an employee by following the principles of natural justice and close the file. Once you do that, you do not have to waste your time settling past issues.

Management enjoys enormous legitimate powers at their disposal and can fall prey to the temptation of on-the-spot dismissal. However, a large number of times, aggrieved employees have gone to the labor courts and won their cases. Companies have had to reinstate employees with back wages.

When you remove someone on the grounds of misconduct, it is important to conduct a domestic inquiry and award suitable punishment. If the person is terminated, it is also important to complete the "Full and Final Settlement" process. Withholding payment may satisfy management's ego, but it is also illegal.

For Umesh: You have given a short but perfect reply. Thank you very much.

Thanks,

Dinesh V Divekar

I am Mr. Exe in my company. One of my employees left the service without giving any resignation and joined another company. My question is how we should handle removing this employee from the company records. Please provide the best solution for this.

Regards,
Sanjay Sharma

Keep in mind, instead, make it a practice of sending absconding notices to all such employees who are absent without information for more than 7 days. Hence, in this case, you're required to send an absconding notice immediately to the employee through registered post, preferably to his permanent address. In case you do not hear anything within a week's time, please send him a notice charging him with working on dual employment without any prior intimation, and in that case, his FnF will be held until he personally comes to you. You cannot delete his name from your muster roll merely on suspicion of him working on dual employment. You are required to send at least three absconding notices. Sending an absconding notice is to provide an employee with a last chance to appear on duty. If he fails to appear before you after three notices, his name shall be deleted from the muster roll of your organization.

Warm regards,
Umesh Chaudhary
Regards

Termination Communication and Settlement Process

If an employee is terminated, he/she must be officially communicated with, mentioning the reason and date of termination. They should also be asked to hand over their responsibilities to any concerned employee. It should be mentioned that the employee is expected to settle their dues as per the regular procedure of the organization. The only difference in this kind of sudden termination and normal separation is the settlement of dues against any charges based on the reason for termination. It is mandatory to communicate and document everything properly.

Regards,
Dr. Prasad Bhanage

First of all, verbal termination has no definition; thus, it doesn't stand anywhere. This shows the person has no fault, but the company has its own short-term benefit, as it doesn't want to train him for the long term.

Secondly, he can approach the labor court for harassment or pressurizing by the employer. He can also report to the police station for humiliation and for actions of the employer that go against natural justice.

Lastly, no employer can stop the payment in any case except for damage to employer property or misconduct resulting in commercial loss to the employer.

In your case, it seems the employer is at fault and must pay all his dues along with notice pay in lieu of immediate termination.

Wishing you all the best.

First, we have to clearly understand that if anybody sells his/her work, we definitely have to pay for the service. If there is any case of absconding or instance of violence, the company still has to pay according to his/her work.

If an employee spends their time and provides service, the company should also issue them an experience certificate.

Thank you.

You have not mentioned the reason for termination.

Termination Due to Poor Performance

1) If the termination is on the grounds of poor performance after following the process of an Improvement Plan for some duration and is amicably accepted by all parties, then the relieving and service certificates will be provided after the full and final settlement. Companies have various SLAs on the process.

Termination Due to Unethical Practices

2) If the termination is based on unethical malpractices or serious violations of policies, where after setting up the inquiry process, the investigation team produces the report with artifacts. If the charges are proved, then termination will occur within 24 hours, and a termination letter will be provided to the employees.

Hope you are clear now.

Thanks

I have a case where an employee was serving his one-month notice period (completed 18 days). On the 19th, the employee was terminated/sacked given on the suspension letter. On-the-spot termination was done due to misconduct and violation of the security policy and taking the intellectual property of the company home.

The company is in possession of all the personal belongings of the employee (mobile, laptop, external hard drive, etc.) and conducting a forensic investigation to determine whether the data was moved out to a third party or not.

Company's Statement to the Employee

1) He can't get into any meaningful employment until the investigation is over. Please advise if there is any law that protects the employee in this scenario, or if it is true that the employee can't get employed elsewhere.

2) The company is silent and not mentioning whether the employee will be given full and final settlement. Please advise if there is any law that states that he should be entitled to full and final settlement. If yes, kindly state the same.

Point to be noted: There was no monetary loss to the company, nor was any confidential client/employee information passed to a third party. It was only a breach related to accessing confidential information and intellectual property of the company, not related to clients.

If anyone has answers, kindly request them to post the same.

I was terminated from my job on 25 May without any prior notice. I received an email on 24 May 2015, which was a Sunday. The cause of termination mentioned was my underperformance, but management has not clarified what constitutes my underperformance. Management is ready to pay only the May month's salary but is not willing to pay the additional one month's salary, which is mandatory as per the company dispute act. If the employer does not provide one month's notice, they need to pay an extra month's salary in lieu of the notice period. I have already sent an email and a registered mail to my company. My appointment letter also mentions that both parties need to serve a 4-week notice before leaving. Please help me understand what I can do to get my compensation from the company.

Hi,

I joined a company, and the company terminated me within 15 days without any information or proper reason. They say they cannot settle my pay, and when I launched a grievance, the company's legal advisor says that the company is planning to file an FIR against me. I know how absurd that is, but is there any such way? I seek clarification. I want to mention that I wouldn't have raised a grievance if the company had reacted well.

Hi,

One of our employees got terminated due to sexual harassment with a coworker. I have a question: after termination, do we need to pay one month's salary or not? If yes, why do we need to pay, considering his undisciplined actions that led to his termination?

Please help me and provide your suggestions.

Hi,

My name is Rajeev. I was verbally terminated from the company due to chatting against the company and seniors outside the company. After I provided an apology letter, they terminated me with immediate effect. They are unwilling to process anything for me, including more than one month's salary, a leaving letter, etc. They are also refusing to accept my resignation letter without their signature. Without their signature, I won't be able to withdraw my PF as well. I would appreciate any suggestions you may have.

Thanks & Regards,
Rajeev Prajapati

Hi Mr. Rajeev Kumar,

Termination on what ground? What does your company policy suggest? If it's silent, then you need to submit resignation in the form of documentation, for example, through email to your supervisor. Keep the documentation because verbally, it has no value. Later, go to the office and ask them about your relieving and experience letter. If they deny the same, then you may go to the labor court.

Handling Sexual Harassment Complaints

In cases of sexual harassment by an individual, if the HR department receives a complaint, there should be a committee under the sexual harassment rules responsible for conducting an inquiry into the matter. After a proper inquiry, if the person is found guilty, the punishment should be as per the company's standing orders, which may even include termination of employment. Termination itself is a strict action/punishment for such employees. For one offense, one should not be punished multiple times. Withholding payment and refusing to issue a relieving letter shows a lack of professionalism on the part of the employer and goes against natural justice. Dues have no relation to misconduct, and the earnest money of the individual cannot be withheld.

If the level of harassment is severe, the complaint itself may be escalated to the police, and the judiciary may decide on the appropriate punishment.

Verbal Termination

Dear Rajeev, verbal communication may not have a defined process, but in your case, things are different. In my opinion, the company no longer wishes to retain your services, so there is no reason to stay and fight. They may employ various tactics to force you out. I advise you to distance yourself from such unprofessional behavior.

(Note: Ensure to avoid sentences that may be considered offensive or derogatory while maintaining the original message's intent and tone.)

A company can terminate the service of an employee for misconduct, which may include chatting during office hours with an outsider. However, when terminating for misconduct, the company has to issue a charge sheet, conduct an inquiry, and only terminate the employee based on the report of the inquiry officer. If the company does not follow the proper procedure, then the entire termination becomes invalid in the eyes of the law. In your case, your termination is legally invalid, and you are still considered employed if you wish to challenge it.

Depending on your salary and tenure of service, you are entitled to other benefits, including statutory benefits, if you choose to contest the termination. I recommend consulting a labor lawyer with all your relevant documents for better guidance.

For more information, you can visit my blog at www.labourlawhub.com.

Best regards,

Dear Friend,

Good day. First of all, you should provide a termination letter and obtain a receipt from the employee. If he/she refuses to accept the letter, you must provide it via registered mail. Upon receiving the registered letter, you must provide the final payment along with full termination benefits within 7 working days. The employee also has the right to request a release letter.

Thank you.

Dear all,

The exit and settlement process is solely based on the causes or grounds for the termination.

If an employer terminates any labor due to poor performance, what payment is due to the employer's side for the labor?

Dear prince, if a company gives you a termination letter, you have the right to receive your salary, one month's notice salary, leave encashment, and any bonuses you are entitled to under the rules. The company should not be a threat to you. If you feel that your rights are being violated, you can file a complaint with the labor office against your company.

Employment Bond and Termination Issues

My friend was hired as an assistant manager in a bank. The bank provided 9 months of classroom training in Bangalore and issued a diploma certificate upon completion of the training. Additionally, the bank offered an educational loan of Rs. 3 lakhs, which was then converted into monthly EMIs starting after joining the respective branch post the course. There was a 4-year bond in place, with a bond amount of Rs. 1,80,000 stipulated in the contract and agreement.

If an individual leaves the job before completing the 4-year term, they are required to pay the bond amount of Rs. 1,80,000. Unfortunately, during the 2nd or 3rd year, my friend was terminated from the job due to poor performance.

My friend has since paid all dues and the bond amount, but the bank refuses to issue a relieving letter, stating that termination from employment precludes the provision of such documentation.

Questions Regarding Bond and Documentation

1. If someone pays off the loan amount for the course, why does the bank impose a bond? The course was not unique; it was similar to an MBA diploma, with no utilization of bank property or access to confidential information. Therefore, the necessity of paying the bond amount is unclear.

2. With the bank unwilling to provide a relieving letter or an experience letter, what steps should be taken next?

Kindly advise on the above-mentioned points.

CAN A DISMISSED EMPLOYEE RECEIVE GRATUITY?

As an HR professional, you may encounter questions regarding the entitlement of dismissed employees to receive gratuity. It is essential to understand the specific circumstances, employment laws, and company policies that govern such situations. Gratuity is often based on the length of service and the terms of departure, which can vary from one organization to another. If an employee is dismissed for valid reasons such as misconduct or poor performance, the eligibility for gratuity may be impacted. It is advisable to consult legal counsel or refer to relevant employment regulations to ensure compliance and fairness in such matters.