Can a Company Finalize an Employee's Resignation Months Later and Impact Insurance Claims?

Query Regarding Resignation and Insurance Claim

Hello Everyone,

One of my friends working at ABC company received a good offer from XYZ company in September 2019, and he resigned from ABC. ABC's management requested him to reconsider his resignation with a salary hike, and he rejected the offer from XYZ company, continuing to work with ABC (though he did not withdraw his resignation).

Subsequently, in December 2019, my friend's son was admitted to the hospital and was covered under group insurance. My friend claimed the insurance amount for the expenses incurred for his son's treatment, which is being processed by the insurance company.

During the same time, differences arose between my friend and his manager, who started pressuring him to resign (orally). My friend kept saying that he would resign once his insurance claim was settled.

However, today (22.01.2020), when he went to the office, his email was deactivated. After inquiring with the manager, he learned that he had been relieved with effect from yesterday (21.01.2020) based on the resignation submitted in September 2019.

My query is whether a company can relieve an employee based on a resignation submitted almost four months ago and whether this would affect his claim settlement with the insurance company.

The mistake from the employee is that he has to withdraw the resignation after reconsidering. With regards to the employer relieving on old resignation is unethical as the Resignation Letter was not accepted and the validity of the resignation expires automatically after the Notice Period mentioned in the Appointment Letter.

With regards to the query, the company can terminate the job of any employee and can be relieved with immediate effect, giving Notice Pay as per the Employment terms.

To add on to the really awesome and valid points put across by Saji, you can also take your employer to court because the reason they have stated for terminating you on 21-Jan-20 is your resignation letter from Sep 2019, which is no longer valid.

If your job should be terminated without any reason, then your employment should be the "employment at will" type where both the employer and employee can leave without giving any notice or reason. But here, this is not the case. So, your employer is supposed to provide you a reason in writing for terminating your employment and also give you the chance to appeal against it if required.

Here, you have all grounds to approach the labor commissioner if the company does not cooperate.