Navigating a Tough Exit: How to Handle a Termination and Secure a Relieving Letter?

Hi friends, I was working with an NBFC company as a branch manager. I received an offer from a leading private bank. I submitted my resignation on October 31, 2015. My actual notice period was 60 days, but I requested my boss if I could serve a 15-day notice period and pay for the remaining 45 days. I also updated this in the HR portal.

On the 15th day, I called my boss and informed him that I needed to be relieved that day. He insisted that I serve the entire notice period. I then paid the 45 days' salary, returned all official belongings, and joined the new company on November 16, 2015.

Ten days later, I received a show cause notice from my previous employer stating that I was absent from duties. I responded to the show cause notice. However, on December 15, I received a termination letter stating that due to the unsatisfactory explanation provided for the show cause notice and the discontinuity of service, they had no choice but to terminate me with immediate effect.

After my resignation was rejected in the HR portal on the 18th, my present employer is now requesting an acceptance letter for my resignation to process the first salary. I am also required to submit my relieving letter within 30 days.

When I contacted my previous boss, he simply stated that he couldn't do anything as it was the company's decision. I am in a critical situation. Will my present employer accept the termination letter? How can I approach my ex-employer to obtain the relieving letter? Will this situation affect my career? Are there any possibilities for legal action?

Friends, please guide me through this challenging situation.

Dear Gokul, Yours is indeed a critical situation. However, if you were to engage in thoughtful introspection and if my assumption is correct and unintentional, the entire blame for this mishap shifts solely to your haste and lack of understanding of your previous employer's attitude as well as the rationale behind the notice of resignation. It is true that the notice of resignation offers two options: either serving the entire notice period or providing monetary compensation in lieu of proper notice. Firstly, as an employee in the position of a Branch Manager, you must acknowledge the reality that, under normal circumstances, the discretion lies with the employer. Secondly, you should have foreseen such a scenario, negotiated with your prospective employer, and secured ample time for the transition period.

Regarding the sequence of events as described, it appears that until the end of your tenure, your resignation was not officially accepted due to your boss's refusal and insistence on serving the full notice period on your last day of service.

Consequently, you are left with two viable options: one is to approach the CEO of your former company and request the conversion of the termination orders into an acceptance of your resignation; the other is to persuade your current employer not to insist on a relieving letter.

Sincerely

"One way is to approach the CEO of your previous company and request him to convert the orders of termination into acceptance of your resignation. The other way is to convince your current employer not to insist on a relieving letter."

Rightly said. Approach for compromise on one side and, on the other side, request not to press for a relieving letter. All of this highlights the importance of approaching quitting and taking new jobs with great care and being fully aware of the time periods needed for a legal exit.

Managerial Cadre and Labor Laws

Those who are in the managerial cadre of employment should always be aware that protection under labor laws is not available to them. When changing employment, they should act like mature individuals and not behave like class IV employees or clerks who have limited ownership within the company.

Negotiating with a New Employer

In negotiations with a new employer, they should offer their services rather than request employment. While offering their services, they should set certain conditions, and the notice period with the present employer should be one of them. I don't think any employer would hesitate to hire a person who states that they require two months to join because they cannot leave the present employer without finding an alternative and properly completing the handover formalities. Some organizations are willing to wait for candidates who are seen as assets for a much longer period.

Remedy for Relieving Letter Issues

The only remedy, as suggested by Umakanthan Sir, is available if you fail to produce the relieving letter. Naturally, the present employer can then decide to terminate you without offering any opportunity to be heard.

Regards,
Madhu.T.K

Dear Gokul, Do you have any proof of tendering your resignation? Did you mention the last date clearly and offer to pay for the rest of the duration in clear words? How did you ensure the knowledge transfer? Did you have it signed off by the people who received it? What about the handover of duties? How was it done and who authorized it?

An employee can't be terminated if he has already resigned. However, if you can't prove your resignation, then the termination remains valid.

Just as Nathrao suggested, escalating with the proof that you have is your only way out. The employer is correct in claiming the exit unless you have completed the knowledge transfer and have proof of it.

I tend to agree with (Cite Contribution).

Terms and Conditions of Service

The Terms and Conditions of your service contain a 60-day notice of termination (or salary in lieu of notice) on either side. If you have submitted a resignation with a 15-day notice and the rest recoverable from your salary, you have fulfilled your part of the bargain.

Current Employment Practices

In these days of summary termination of employees who are not protected under the law, and the "Hire and Fire" policy that exists, it is futile to expect generational loyalty from employees, as is prevalent in the Armed Forces, certain Japanese, and a few top Indian companies.

As a professional, you have fulfilled the requirements and adhered to the T&C of your employment terms. There is no need to shed emotional tears for a company that may not lose a day in shedding the workforce according to market situations.

Company's Response

It is the company's high-handedness to issue a Show-Cause Notice and then a termination letter to you when they could have easily and rightfully issued a Resignation Accepted letter. It amply makes clear the kind of concern your company has for its employees who want to leave.

As a parting note, one can be certain that such a company would not even bother to have an exit interview.

You have already been given sound suggestions by our experienced and learned members; please consider them seriously.

Warm regards.

Handling Employment Transition Challenges

Being in a senior position, you have been rather presumptuous with your first employer, I must say. Why did you not wait until the formal response was received from the employer? Instead, you paid for the remaining days of the notice period and left. While doing so, you did not even try to tie up the loose ends with the new employer concerning their view/commitment that the requirement of a relieving letter from your earlier employer is waived off.

I agree with the approach suggested by our previous experts to initiate a polite dialogue with both parties and see what happens. All the best.