IS HR / PERSONNEL Dept.HEAD SIGN ON TERMINATION LETTER IS VALIED ?

Dear Experts,

Will you please help me? Our management has insisted that I sign the 'Termination Letter' of one of our employees (Assistant Manager cadre). As the HR department head, is my signature valid?

My argument is that it should only be signed by either the Factory Head, Concerned Department Head, or Occupier. If the employee takes the case to labor court, the signature of the personnel department head will not be acceptable because they have to represent the case on behalf of the management. This is my argument.

So, please clarify and assist me.

Regards,
PBS KUMAR

Hi Mr. Kumar,

I am not an HR, but a lawyer who can tell you what you are actually doing when you sign such forms.

By signing the termination letter, you are terminating the employment contract entered into with the employee by the company.

The general rule is that he who enters into a contract can only terminate it, but not a third party.

In the company's context, if the company has authorized you to terminate the contract entered into with the employees, then the signature made by you is very much valid and binding.

In an employment contract, there is a rule of equity that says only the appointing authority has the right to dismiss/terminate an employment.

Hence, it is always safer to see who has signed the appointment letter/offer letter of the employee (not the same person, but the person holding the same position, e.g., HR Manager) and ask the same person to sign the termination letter.

As a general rule, the HR Head is deemed to be authorized to terminate the employment, and I think that the court would accept such a contention during the litigation.

Moreover, I don't think that anybody would approach the labor court against termination unless his compensations on termination are not fully paid, or the company is a government undertaking.

Mr. Kumar,

I think Mr. Pradeep has answered you very well about your query. It's better if you check who was authorized to sign the appointment letter of that individual. Also, being an HR head, if the company authorizes you to sign the termination letter, then the decision is very much valid.

Regards,
Sumiksha

Dear Mr. Pradeep Ji,

Thank you very much for your valuable suggestion. The "only appointing authority" has the right to sign the termination letter of the employee. The model employment standing orders also state the same thing.

Regards,
PBS Kumar