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Can HR sign contracts, leavers letters, termination letters etc.

Zerina

Hi all

I recently joined my company and I was just told off by our General Counsel for signing simple leavers letter. She said that all legally binding documents (such as a termination of employment agreement) can only be signed by an authorised representative of the legal entity that originally employs the employee such as Directors.

This is news to me as in my previous role i used to sign all letters coming out of HR department. If we can't sign even simple leavers letter then what are we here for.

It would be great to get some advice as this made me really upset.

Thanks! 

Zerina 

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  • Hi Zerina
    I had to smile reading your post. In many companies lawyers and general counsels are notoriously conservative animals. At the extreme, if you apply their advice, no manager would be able to give legitimate (legally binding) operations instructions to their staff without the approval in writing of the MD.
    This sounds more like a cultural thing to me, and you might want to explore the question urther with your boss what limits they think should exist within your company on who can sign what (leave requests, expense claims). One area that helps people to understand the wuestion is "who can sign off the instructions for the monthly payroll to be actioned, and what supporting documents need to be prepared to enable this to happen"?
  • in reply to Ray
    Thank you both so much, you are absolutely right! Some people like to control everything and they think that they have all knowledge in the world. You both made my day!
  • in reply to Zerina
    I'd be inclined to mention that as I am the HR person employed by the company which - by default authorised me to carry out reasonable duties as bound by my employment contract, then there should be a presumption that it would include being allowed to sign letters I'd written. That assumes you are not a secretary??
  • in reply to Zerina
    Whilst I agree with colleagues - there is nothing of course against an organisation limiting who can commit an organisation to legally binding agreements (including contracts of employment) to who ever it likes - including very few individuals. Whilst we may all have views on this there are some reasons why it might be sensible and part of a tight but necessary control system.
  • in reply to Keith
    Useful also to remember that contactually binding agreements are entered into every day when managers talk to their staff. A signed piece of paper is simply a mutually convenient way of recording this agreement for the avoidance of any doubt, and is in no way necessary for a contract to have been concluded. Indeed many tribunal cases concern oral agreements which can clearly be demonstrated to exist....
  • in reply to Ray
    The funny thing is that this was only a leavers letter! Just stating last day on employment and number of days of annual leave left! I guess when you have people with legal background they feel that they know it all. I love this forum and its nice to feel supported so thank you all so much!
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  • in reply to Ray
    The funny thing is that this was only a leavers letter! Just stating last day on employment and number of days of annual leave left! I guess when you have people with legal background they feel that they know it all. I love this forum and its nice to feel supported so thank you all so much!
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