Resignation Before Termination.

Hi Friends,

I have a typical situation on hand. One of our employees has resigned upon learning that he will be terminated shortly. I am not sure how he came to know this. The question is, how should we treat him?

1) Should we treat him as a regular employee who has submitted his resignation with a 30-day notice period?

2) Can we terminate him now? If we decide to terminate him now, what are the potential legal issues to consider?

Thanks,
Suresh

Dear friend,

When an employee, for whatever reason, resigns from his job before any termination takes place, it is acceptable to accept the resignation as the management no longer requires his services.

If termination occurs, there are several procedures to be followed:

1. You must issue a show cause notice for the employee's irregularities.
2. Obtain the employee's explanation in response to the show cause notice.
3. Conduct an inquiry and provide the employee with a personal hearing.
4. You must prove that the charges against the employee are true.
5. If the charges are substantiated, you may terminate the employee.
6. Even in case of termination, you must fulfill all statutory payments such as gratuity, bonus, and leave with wages that are owed to the employee up to the date of termination.
7. Therefore, following the principles of natural justice, the employee's resignation may be accepted, and the employee may be relieved of duties by ensuring all required statutory payments due to the employee up to the date of departure are made.

Mohan Rao
HR Manager

Dear Suresh,

If an employee tenders his resignation, why would you want to terminate him? By tendering resignation, he himself leaves the organization, giving you a chance to relieve him. Why would you then require a notice period for resignation?

On the other hand, termination may invite litigations. He may proceed against the employer for unlawful termination of his employment, and if he is successful, he may be awarded reinstatement with back wages and continuity in service after a few years.

Be practical. Or do you want to show him how tough you are? (Please remember, you will be the loser in such cases).

My dear friends, knowing Industrial Relations is not a disqualification. You can spend some time to learn IR.

Dear Mr. Kutty,

Mr. Kutty has said rightly. Have patience in this field. If you don't like anyone, try to take resignation. Don't terminate anyone without proper reason and following the procedures.

Regards,
JS Malik

The term "termination" does not have a strong legal entity in law. The terms that have legal standing are "discharge" and "dismissal." Termination generally refers to the ending of a contract. The appropriate term to use in this context is "relieving".

You can relieve a person from their services after they resign, but you need to consider the notice period. This includes the terms of notice pay and who is responsible for payment, whether it is the employer or the employee. It is important to review the letter of appointment issued to the individual.

If a person resigns, requests relieving, and is willing to serve the notice period, you should allow them to do so. Alternatively, you can provide notice pay and relieve them immediately before the resignation date, as they have already submitted their resignation. There is no risk in doing so.

Accept the resignation, issue the relieving letter specifying the individual's last working day in the company, and advise them to contact the accounts department for their full and final settlement.

If the individual is permitted to serve the notice period in the office, keep a close watch on them.

This is purely based on the reason for which the management is wanting to terminate the employee. If the employee is involved in any unlawful or unethical behavior where the management is under loss of secret information or monetary loss, etc., which is subject to punitive action, it is advisable that his resignation not be accepted. In his resignation unacceptance letter, you can follow the procedures of the show cause notice and then on the procedures said by Mr. Mohan Rao. If it is only on behavioral issues or performance issues, it is better to accept his resignation and relieve him.

Regards,

Ramesh R

He resigned even before you could terminate him. The reason may be that he came to know about it, or he himself felt that there is no value addition to his portfolio.

Take the dates alone into consideration. Has he submitted his resignation even before you terminated him? If yes, then use the normal resignation process. Conduct an exit interview, let him serve the notice, and complete all dues.

However, if you decide to terminate him, then legal actions will only favor him and not you or the employer.

Thanks

It is better to relieve him as per company rules instead of getting stuck into legal matters.

Best of Luck

Hi Suresh,

You wanted to get rid of him anyway. Now, when he has resigned of his own accord, your purpose is served. What will you gain extra by terminating him? HR practitioners need not be vindictive.

Best, Jai.

Hello Mr. Mohan,

I wanted to inquire about something and was hoping you could help me out. I had an employee working under me who resigned on the 1st of this month without providing any handover, paying his notice pay, or serving the notice period. What action can be taken against this employee?