Laid Off as a Full-Stack Developer: Am I Entitled to a Relieving Letter?

Hello, I was employed as a Full-Stack Developer in my previous organization from May 1st, 2022, and was laid off. My last day was February 9th, 2024.

Eligibility for a Relieving Letter

As I was laid off, am I eligible to get the Relieving Letter? When I asked HR, she said I am not entitled to receive the Relieving Letter since I did not resign.

Please guide me on this.

I believe that you are not laid off but rather terminated from service. The former refers to a temporary arrangement by the management during a crisis, such as a lack of orders or surplus stock. During a layoff, the employee should be paid a salary at the rate of 50% of their regular salary.

When you are terminated, you will receive a relieving order. You are also entitled to a service letter, but it will indicate that you have been terminated for the reasons mentioned therein. Therefore, if you have been asked to leave due to redundancy, it is advisable to resign so that you will receive a relieving cum service certificate showing that you have been relieved following your resignation.

Whatever the reason for retrenchment or termination, there should be some communication from the employer to the employee. Normally, HR will not issue a letter stating that you have been terminated. If issued due to oversight, the employee concerned may take it to the Labour Officer, leading to serious consequences. This is because a confirmed employee cannot be terminated without reasons and without following certain principles. If terminated, it would be illegal and could backfire on the management.

Hello Madhu T K,

I appreciate your quick response. I am pretty sure that I was laid off. On 9th Jan 2024, I had a Google Meet with HR and the Product Manager, and I was informed that I was being laid off because the operations of the product I was working on in India were shut down, leading to a reduction in team size.

In this case, it's a layoff. Am I still entitled to receive the relieving letter?

Understanding Layoffs vs. Retrenchment

It is due to ignorance of the law associated with HR that the HR Manager has used the word 'layoff.' It seems that you are being asked to go and not laid off. If it is a layoff, then you will continue in service but will not be working, and to compensate, you will be paid layoff compensation. Hence, I am pretty sure that you are being retrenched permanently. Still, you can ask the HR person whether you have been 'laid off' or 'retrenched.'

Next Steps if Terminated

In any case, there should be a letter from the management. If the management confirms that their decision is to terminate you and not to lay you off for the time being, you can ask whether you could submit a resignation so that you would get a service certificate, which can be used to find a career. This will also help HR to process the F&F smoothly and without any legal issues.

We deeply regret to inform you that due to the lack of significant progress in the ProductName project, we have made the decision to shut down ProductName India Operations and dissolve the internal team of ProductName. Therefore, we are notifying you that February 9, 2024, will be your last working day with us, and we are providing you with advanced notice. We believe this timeframe will allow you to seek out new opportunities. I received this email following the Google Meet on January 9th. In this situation, am I entitled to a Relieving Letter? Please provide guidance.

This is a notice for terminating your service. You can ask for a relieving order, and it should be provided. The manner in which the letter will be worded cannot be predicted because it will read as "Following the shutdown of ProductName India Operations and the dissolution of the internal team of ProductName, you have been relieved/you stand relieved from service on 9th March 2024." A good HR professional will also provide you with a service certificate that describes the duties you have performed and the name of the project you were working on. This certificate can be beneficial for your future career opportunities. However, obtaining this certificate depends on the culture of the organization. You must request it; it will not be given automatically.

I asked HR for the Relieving Letter, and they responded as follows:

- A Relieving Letter can't be given
- As you have not resigned

I received this message from HR on WhatsApp. What should I do in this situation?

Communication Methods in HR

Why do you communicate through WhatsApp? Don't you have a system for speaking with the HR person in person? Why is the HR manager sitting in the chair if they cannot help an employee? If you are retrenched, you should receive a relieving letter. If they don't provide a letter, it would be construed that you are still in service. Issuing a relieving letter only relieves an employee of their responsibilities as an employee. Your HR manager does not know the basics of HR, which is why they are talking such nonsense.

Certainly, if your service is terminated for reasons like performance issues or misconduct, there is genuineness in saying that no relieving letter will be issued. In such cases, I would still say that a relieving letter should be issued, even though a service certificate cannot be issued because the latter would cause the employee a stigma when the letter states that "he was relieved following a termination order subsequent to his failure to meet performance criteria." But a relieving letter only says that "following the communication dated... about the dissolution of the project, you have been relieved." This should be given to you if the facts are clear.

HR Knowledge and Protocols

Now, I cannot teach your HR person the HR protocols and policies because all these are company-centric. I also understand that your HR has no knowledge about HR in general and industrial and employee relations in particular. They are sitting in a dream palace to which nobody is allowed to enter. It is very sad to say that this type of HR person spoils the company's name and reputation.

My Experience in HR

I don't know whether you have gone through my profile. I can understand you are getting irritated with my replies too. Before reading further, please note that I have been in the HR field for the last three decades. I have seen the old style of personnel management and the new Gen HR. Many HR persons follow me and take advice from me every day. It is unfortunate that your HR is not my follower. Had they been my follower, I would have guided them properly and told them that HR is just a glorified clerk and nothing more than that!

Hello Madhu T K, I have been working in a remote position since the beginning of my employment, so I've had to contact them through WhatsApp. I called her a few minutes ago, and again she said that a relieving letter is given to those who have resigned. I told her that I talked to a few people and checked on Google, and it's not something that only resigned individuals get; everyone is entitled to it. Then she said, "If you need it, I'll give it to you." I replied, "Yes, I need it," and she said she would try to provide it on Monday.

Madhu Sir, I'm not irritated with your replies. This is my first job, and I was terminated. When HR said this, I was worried, stressed, and anxious. Furthermore, I checked on Google and learned (though not 100% sure) that if there's no relieving letter, it can pose problems in a new job.

Due to all this, Madhu Sir, I was bothering you, asking numerous questions, and seeking help.

Relieving Order and Its Importance

Anyway, the HR person has committed to giving you a relieving order. Now you can let her know the situation you are facing, the future job hunting, and the consequences of incorrect wording in the relieving order that could affect your career. Therefore, please convince her to issue you a letter that will not create problems in the future. As already mentioned, it all depends on the attitude of the HR person. They can either support a relieving employee or harm an employee's career.

Be positive. If you need any personal help, please feel free to call me. My contact number is [Phone Number Removed For Privacy-Reasons].