Why companies prefer resignation over termination?
Discover why companies often prefer resignation over termination. Explore the benefits, including reduced legal risks, cost savings, and maintaining a positive company reputation, that make resignation a favorable choice for employers.
Many of us don’t know why companies do not give a termination letter. Instead, it tells you to give a resignation letter. After multiple follow-ups, when the company is not giving you letter then what should an employee do? A company cannot bound any of its employees to work in a particular job. Your company needs you the same as you need the job.
Our constitution understands this thing very clearly this is the reason behind our constitution has given the rights to an employer and an employee because of not knowing our own rights, an employee always remains on the back foot. There are some rules for working in a companyand they are for both, a company and an employee. In this blog, we will discuss the reasons behind companies prefer resignation over termination.
Mainly there are 3 reasons due to which a company can terminate you. These reasons include misconduct, performance and lack of a suitable job for you. If you have performed a misconduct like disciplinary issues, misconduct with female employees, misplaced the data of a company; there is no hearing in such cases. The company can terminate you immediately after an enquiry.
Second one is performance issue. Whenever you are working, you have to understand at which stage of a company you are at. If you ignore the documents in the hiring process, you can come at the back foot. There are plenty of places where you have to pay attention in the hiring process.When you apply for a job, you receive a letter of intent after selection. It doesn’t have a legal binding.
It has a very simple meaning that a company has shown intent of hiring you. You have to give the required information after that. Some companies may ask for your salary slips and other documents as well for verification and send you an offer letter after that. An offer letter is a proof that the company has offered you a job and it is mention at which date you have to join. If you don’t do it on that date, then it is considered as invalid.
On the day on which you joined the company, you are given an Appointment letter. After filling all the details, you give it to the company after signing Is called a joining letter. When company and employee signs on this appointment and joining letter, a legal contract is formed. This appointment letter becomes the basis of the employment.
On the basis of this letter, things like probation period, notice period, the termination clause, the breakup of CL and AL are mentioned in it. In some cases, companies add a line about the validity of a contract. If you are willing to work in the same company, then you can request HR for an extension.
This letter is a proof thatyou have joined this company on the date mentioned. But you are not a confirmed employee of that company. You will be on a probation period for 3 to 6 months. The timing differs for every company which can be seen in the appointment letters. Generally, it is for 6 months and can be extended when needed.
In the probation period, the company checks whether the employee is worthy or not and so does the employee. Even though the probation period is 6 months, the company can terminate you without any reason and the employee can also do the same. You get the basic rights like national minimum wages,sick leave, maternity leave. After successfully completion of probation period, you get a confirmation letter.
Then you are considered as a confirmed employee of the company. You will get all the company benefits and the company cannot fire you instantly. Even if the company fires you, it has to follow the compliance. Some companies get you to fill a bond at the time of joining. A huge amount is written in that if you leave the company before a certain time, then you will have to give this much amount. Some companies take the mark sheet also.
As per the Indian law,companies cannot bind you to any job. If the cases of bonds go to courts, then if the company has spent money on your trainingand you will have to leave the job because of some reasons. Then, in that case, it will beseen till when you have done the job. An estimate will be made about how much profit has been incurred due to you and how much has been spent on your training.
The second one is a non-compete clause which means you cannot join the competitor. You can surely join even if you sign the bondbut you have to pay attention that you shouldn’t do any monetary loss to your current company.
There are some cases in which the company doesn’t give a letter even after multiple follow ups. Let’s take an example of appointment letter. Suppose you have joined the company and you are doing your job. But then also HR is not giving you an appointment letter.
In that case, you have to copy from HR to your higher authorities in which you have to mention the name of the person to whom you are asking for an appointment letter and you have to write that you have been in the company for this much time and have performed multiple follow-ups and have not received an appointment letter. Save a copy of this email with you. After that, you don’t have to do a follow-up.
The company has to follow compliance for firing you as you have become a confirmed employee of the company. A bill was introduced in 2020, if a company terminates any employee,then it has to give him a salary for 9 months and the benefits. If this bill gets passed in the future, then the companies tell you to resign now will play more tricks then. They will get you to give a resignation. This is the reason when our company has to terminate you, they don’t give a termination letter and tell you to resign.
Companies cannot terminate you through any illegal means. When a company misses a step and terminates an employee, then it is called illegal termination. An employee can take action against it. The company tells you to resign instead of giving you a termination letter so that you will not get your benefits. If a company terminates you then it will give you a termination letter. A proper reason is mentioned in that. If something wrong or misleading information is written into it then you can challenge it.
