Rights and entitlements of laid-off employees

Being fired from a job can be stressful and a rather uncertain experience for any employee. However, it’s important to remember that, as employees, they still have rights even after being terminated from their position.

Prasanth Gulur Bhyranna, group CHRO, First Steps Babywear, talks of certain legal entitlements that employees should receive from their employers when they are fired or terminated. These include their provident fund, which is a retirement savings account; any unpaid wages; and any accrued leave, including gratuity, if they have worked for more than five years.

“Employers are also required to give the employees any retention amount that they have earned but kept with them. These measures are mandated by law, and employers are legally obligated to provide them to their former employees,” adds Gulur.

Severance Pay

This is one of the first things employees should find out whether they are entitled to or not. Severance pay is a lump-sum payment made by employers to employees who have been terminated. While there is no federal law requiring employers to provide severance pay, some states do have laws requiring employers to grant it. In addition, some employers may offer severance pay as part of their company policy or as a way to incentivise employees to leave on good terms.

“Employers are also required to give the employees any retention amount that they have earned but kept with them. These measures are mandated by law, and employers are legally obligated to provide them to their former employees.”

Prasanth Gulur Bhyranna, group CHRO, First Steps Babywear

Unemployment benefits

Another important consideration for employees who have been fired is whether or not they are eligible for unemployment benefits. Unemployment benefits are typically provided by the state and are designed to provide financial assistance to individuals who have lost their jobs through no fault of their own. To be eligible for unemployment benefits, employees must meet certain requirements, such as actively seeking employment and being able and available to work.

Access to the personnel file

Employees who have been fired also have the right to access their personnel file. Their personnel file contains information about their employment, including performance evaluations, disciplinary actions, and other relevant information. Accessing one’s personnel file can be helpful if employees need to dispute any information or provide documentation for future job applications.

Protection against discrimination

If employees believe that they were fired because of their race, gender, religion, national origin, age, or disability, they may be able to file a discrimination claim. Discrimination based on any of these factors is illegal.

Final paycheck

The employer is required by law to provide the employees with a final paycheck at the time of their termination. This paycheck should include all of their earned wages and any accrued vacation or sick time. If the employer fails to provide employees with their final paycheck, they may be able to file a complaint with the state’s labour department or pursue legal action.

“Ultimately, relationships are important and should be treated with care. It is important to avoid creating any negative energy or burning bridges.”

Rishav Dev, CHRO, Noveltech Feeds

Bhyranna states, “In addition to these legal entitlements, it is also important to review the terms of the employment contract. The contract may specify the amount of notice that the employer must give before terminating the employee, as well as any other contractual obligations that the employer must fulfil upon termination. For instance, the contract may require the employer to pay out any unused vacation time or sick leave to the employee.”

According to Bhyranna, it is important for employees to understand their rights upon termination and to ensure that their employer is meeting their legal and contractual obligations. If an employer fails to provide the necessary entitlements, employees have the right to take legal action to recover what they are owed.

However, Rishav Dev, CHRO, Noveltech Feeds, believes that maintaining a positive relationship with their employer even after being fired is crucial for employees. Any relationship should be ended in a respectful manner, and employees should strive to maintain a good rapport with their former employers. This is important, as it can be beneficial in the long run.

He explains, “It is not uncommon for people to be let go from their jobs, and it should not be something to be ashamed of. Rather than dwelling on negative emotions, employees should try to move on with a positive outlook. This will help prevent any negative impact on future opportunities and relationships and can even potentially lead to new opportunities within the same organisation.”

“Ultimately, relationships are important and should be treated with care. It is important to avoid creating any negative energy or burning bridges. Instead, the focus should be on maintaining a positive outlook and keeping doors open for the future. This approach may differ from others, but it can ultimately lead to a more positive and fulfilling outcome for all parties involved,” concludes Dev.