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Author Topic: Termination of Service without reason & No Releiving letter issued  (Read 803 times)

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Dear All,

I was senior professional working with private company before i was terminated from my permanent services by giving in lieu 3 month of notice pay. Reason for termination is not provided in termination letter only clause reference was given under which termination was executed. I was terminated by applying clause B.

As per appointment letter there are 2 clauses with reference to exit i.e Clause A & Clause B.

Under Clause A employment can be terminated by the company, without any notice or payment of any kind of lieu of notice in the following reasons like furnishing incorrect information, suppression of material information, dishonesty, disobedience, insubordination, incivility, intemperance, irregularity, misconduct on duty, adjudged insolvent, cheat, Fraud etc.

Whereas Under Clause B subject to the right of the company to terminate this employment in accordance with clause A, it may be terminated either by the company or yourself by giving 3 month notice to each other.

I was terminated using clause B and my settlement was done with payment of 3 month of notice, leave encashment, PF and gratuity etc. but I am not issued any relieving letter which is issued to all other employees.

Below I am quoting the exact wording used in the letter issued to me. There is no header given to letter such as termination letter or something.

"In Accordance with clause B of your appointment letter, the company has decided to terminate your services with immediate effect by payment to you in lieu of stipulated 3 months' notice. However, you may receive your dues, if any, from our accounts department on any working day during the working hours after completing due formalities."

Generally, Clause A is used whenever any termination letter is issued by specifying the exact reason for taking action against the employee with reference to their termination of service whereas in my case no reason was provided except the use of clause mentioned in the letter.

My F&F mention DOJ, DOR & LWD and I am paid all the benefits which is offered to any other employee and nothing was witheld except the relieving letter.

I need to know does my company has the right not to issue me relieving letter post issuing the above letter since I am terminated under clause B. I has requested them to issue me the letter but same is gone in vain. Also suggest possible action i can initiate to get the relieving letter.

Arjun Mehra

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Re: Termination of Service without reason & No Releiving letter issued
« Reply #1 on: July 16, 2016, 12:11:29 AM »
Your termination seems be prima facie illegal as there is a procedure for termination of permanent employee which the company has failed to follow. Paying 3 month's notice pay is not the procedure.

However, since you have not raised the dispute of illegal termination (for reasons best known to you) and also have accepted the full and final settlement including dues like PF and gratuity etc. at this juncture it is not possible to challenge the termination easily.

But regarding the question of release letter, as far as my knowledge is concerned, there is no law which can force/ compel an employer to issue release letter after cessation of employer employee relationship.
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