Feeling Uneasy About Director-Only Signing Authority for HR Letters – What Should I Do?

Hello Everyone,

My name is Rutvi Khandwala, and I work as an HR Professional in an IT Company. In my previous company, I used to sign offer letters, appointment letters, experience letters, and relieving letters. I recently started a new job, and here my director insists that he should be the signing authority. I am questioning whether this indicates anything negative. When I initially asked him about issuing a letter, he mentioned, "Signatures should only be from directors in case HR personnel change jobs."

It makes me uncomfortable when we are not permitted to sign letters while we are employed. Could anyone suggest what I should do in this situation?

Regards,

Generally, HR-related letters, notices, and certificates are signed by the Head of HR of the company. In some companies, the signing authority can be designated to anyone from HR for specific communications as decided by the Head of HR. However, based on my knowledge, determining the signing authority for such communications is ultimately decided by the management itself. Therefore, do not harbor any negative feelings about this and adhere to the management's policies. It is common practice in many companies, and you may encounter similar situations in your future employments too.

Regards,
Ashutosh

Relax. What the Director is saying is no reflection on your ability or skills.

First, you are new to the organization. Second, the management is not confident yet to entrust this responsibility to you.

Signing Authority Considerations

Barring statutory requirements like under Excise, Bank Cheques, Factories Act, and the like, the signing authority is based on the organization's policy considerations and is generally bestowed upon the person responsible for the function and one who has gained the confidence of the superiors. It also depends on the volume of work and the free time one has. In your case, the reasons for the lack of confidence may not be attributable to you at all! Confidence in someone else's abilities is a matter of individual perception.

I would suggest that you should just wait and watch for some more time before drawing any inferences and considering any alternatives.

I would again say, relax!

Regards,
Samvedan

November 14, 2013

Delegation of Signing Authority in a Company

The directors or the Board have the discretion to delegate powers to other officials regarding the running of the company's affairs. Thus, they are the ones who form the policy in a company. If a company decides that all letters shall go under the signature of the directors, then it is the policy of that company that you need to respect. There is no need to be unusually perturbed over the issue. You should concentrate now on how best you can discharge your functions as an HR professional in the company. Once you gain the confidence of the directors, they can delegate the function of signing letters to you.

Regards,
B. Saikumar

The Director or the CEO has the authority to appoint or dismiss an employee. Sometimes they delegate their authority to downline managers who might be from HR or any other discipline. So, in this case, if the Director is not comfortable with delegating, you need not worry or take it otherwise. However, it is the HR Managers on whose recommendations/signature he will countersign. So, let the responsibility be shouldered by the Director. It is good for HRM.

Best wishes,
Regards