Who should sign the Termination of Service Letter? If signed by any official below the rank of Director/CEO court will uphold the contention of the Employee?

According to my knowledge, a letter for Termination of Service, whether due to Retirement, Resignation, or other reasons, should be signed by an authorized person not below the rank of the individual who signed the appointment letter. For example, if the appointment letter is signed by the Director/CEO of the Company, then the Relieving letter or termination letter should also be signed by the Director/CEO. In the case of a legal issue, if the relieving letter is signed by any official of the company below the rank of Director/CEO, the aggrieved employee can question the validity of the letter. In such a scenario, the court is likely to support the employee's argument. Some of my colleagues have mentioned that in many companies, HR department officials are the ones who sign the relieving or termination letter.

In light of the above, please clarify and guide me on who should exactly sign the appointment letter as well as the relieving/termination letter.

The Appointing Authority of the employee can sign the Termination order. Moreover, any authority higher/senior than the Appointing Authority can also sign the Termination order. For example, the HR Manager (in general) of the Company can issue Offers of Appointments to candidates. Once an individual takes up employment in the Company, if there are any disciplinary reasons necessitating termination, either the HR Manager or General Manager of the Company can issue the Termination order.

Trust this clarifies.