HomeGENERALLeaving A Job? Know The Important Jargon

Leaving A Job? Know The Important Jargon

When you join a new job, chances are that you will be leaving the job at some point in future. You have three options when you decide you are leaving a job – resignation, termination or absconding. But are you aware of what the law states for each of these options? Are you aware which option is the best for your situation? And are you aware of the procs and cons of each option? Read on this blog to find out.

What does Resignation mean?

Resignation signifies an employee’s desire of leaving a job of his own accord. In this case, the employee submits his resignation letter to his employer and states his reasons for not being able to continue his employment. Giving a resignation latter and serving a notice period helps in maintaining a cordial relation between the employee and the employer. The notice period also gives the employer some time to fill the position and make the transition a smooth process.

What is the process of Resignation?

  • In most cases, employees quit their job by giving a resignation, for their own reasons. Although sometimes, it may happen due to the employer’s persistence.
  • A resignation letter submission is compulsory to the company. This states the date of leaving a job as well as the reason for leaving.
  • Furthermore, the employee has to serve a notice period according to his contract with the employer. This notice period can range from 15 days to 3 months.
  • During the notice period, it is the employee’s responsibility to clear all his pending dues. This includes returning all the company’s equipment such as a laptop, etc. back. The employee must also brief either his subordinate or his senior on his ongoing project details to keep them updated of the work.
  • Sometimes, the resigning employee must also train the new employee who will replace and take over his position.

What does Termination mean?

Termination signifies when an employer asks an employee to discontinue his employment and leave the company. There can be various reasons for an employee’s termination. Some could be if the company closes down due to economic slowdown, government policies, pollution control certification, etc. These are unavoidable reasons for leaving a job due to termination.

On the other hand, termination may also occur due to the employee’s fault. If the employee is found guilty of wilful insubordination or disobedience; theft, fraud or dishonesty; wilful damage to or loss of employer’s goods; sexual assault; partaking of bribes or any illegal gratification, then the employer has the right to terminate the employee’s employment. Absence from work without leave permissions for more than 10 days, also gives the employee the authority to terminate employment.

Laws for termination

But most states have laws which stop an employee from terminating employment wrongfully. In fact, a recent bill was brought to the Rajya Sabha called the Terminated Employees (Welfare) Bill 2020. This bill got rave reviews among the citizens of the country. It states that if an employer terminates an employee then he is liable to pay him 9 months salary, pay him insurance, his healthcare bills, support his family, etc. regardless of the reason. This bill is yet to pass in the Parliament of India.

leaving a job
leaving a job

If the employee is accused of any misconduct for his termination then he must get a chance to prove his innocence. If the employee is found guilty then the employer is not liable to pay him any severance fee. Although if the termination is not because of the employee’s fault, then he is eligible for a severance package. This may include the basic salary plus DA from 1 month to 3 months. The Industrial Dispute Act, Section 25F states that severance package for workmen category is mandatory. this does not apply for supervisor category.

leaving a job

In most states, the Factories Act governs that if the company crosses its threshold of employees and is terminating its employee, then the company needs to take the government’s permission for it, this threshold of employees differs state to state. Hence, most employer’s ask their employee to submit a resignation instead of terminating them. This helps in ending things on good terms too. The employer might also offer the employee a recommendation letter or better payslip, etc. to help them find another employment soon. The employer may also waver the employee’s notice period. This favours the employee too as a termination of employment is seen as a fault on a resume. So saying that you resigned is always better than saying that you were terminated.

What if you don’t serve notice period?

It is not mandatory to serve one’s notice period after resignation. No law makes it compulsory. But the employer might ask you for compensation for the loss the company suffers during this period. Secondly, if the employee has any company confidential data or equipment, then the employer might sue him for it.

What does Absconding mean?

When an employee leaves his employment without informing the employer about it, is it known as absconding. The employee might also stop receiving calls or replying to emails by the company. In some cases, the employee may even go completely missing in action and is difficult to trace. This practice of leaving a job without informing the authorities is mostly done by freshers. Although, it might be easier to explain your reason to your superior for leaving a job, rather than absconding. Absconding gives the employer the right to terminate your employment.

This leaves a bad impression on your career. Any pending payments for your salary, gratuity may be difficult to receive. Inputting your date of exit on your PF, ESI from the employer will also be problematic. Learn more about it in Reason For Leaving Job? Most Important EPF & ESI Formalities! Thus, absconding is never a good resort for an employee. Rather go for a formal resignation.

Watch the video on jargon for leaving a job below.

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Heena Siddique
Heena Siddique
Bibliophile. Turophile. Foodie. Tea enthusiast. Shopaholic. Sitcom addict. Movie buff.

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