Partner - Risk Management
Lavika Yadav
Statutory Complaince/labour & Employment
[email protected]
Client And Candidate Mangement
+2 Others

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Hi, Iam working for Software company from last 1year 6months. After All working for this many months, My Company is saying that your Performance is not good we are terminating you from job and without any notice period. And the probation period is first 3 months that i have completed successfully.
please tell me ,
1. company has rights to terminate the employee without any reason and notice period.?
2. if No, can i take legal action regarding the company.?

From India, Hyderabad
Please go through your offer letter and confirmation letter and check what notice period has been mentioned on it after completion of probation period.Its unethical to terminate for sake of experience after 1.6 yrs..they must have intimated you or should have given u some Performance Improvement Plan letter or warning letter.Discuss with your HR and find out some alternate options because this termination will spoil your 1.6 yrs good experience.
Be positive,confident and face the situation bravely..
All the Best

From India, Mohali
Thanks for you answer,

These are the clause return in my Appointment letter regarding termination. Can you please check this. I Have asked for compensation for extra 2 months. but they are refusing to pay me.

Termination policies are as follows:

Your Employment with XCOMPANY at will and may be terminated at any point of time, if you are found to be unsuitable at the evaluation of XCOMPANY Management or for any reasons whatsoever with 2(two) months clear notice in writing.

Similarly, if you resign, you are required to serve either 2 months clear notice in writing or pay an amount equal to your 2 months salary in lieu. No Notice period and notice pay is applicable if your performance is not found satisfactory after the training period, or if you violated company policies.

After confirmation of you employment, notice of termination of employment will be 2 months notice in writing or 2months salary in lieu of notice.

Not withstanding the aforementioned, the company shall be entitled to terminate your employment without notice, indemnities and compensation in any of the following events any of company polices including but not limited to below.

1. if you are in the opinion of the company, guilty of dishonesty, serious, misconduct or negligence in the performance of the duties.

2. if you have been found to have committed a serious breach or continual material breach of any of your duties or obligations.

3. if you are found to have made illegal monetary profit or received any gratuities or other rewards, in cash or in kinf, out of any of the company's affairs or any of its subsidiaries or related companies.

4.material and monastery loss to company.

5. if you are found to have violated company policies.

From India, Hyderabad
Then ask for notice period or 2 months salary..Simple..If they refuse to do so then raise the query again..
But firstly talk to your HR both verbally and on mail also..And keep all mails backup so that u can use it in future as evidences.

From India, Mohali
I have Talked to HR and CEO of the Company. But they are refusing to pay compensation. They have Blocked my Company Email Id. just have company id card and appointment letter. And hey have deducted PF Amount from my salary but they did not give me the PF Number also.
From India, Hyderabad
Its illegal...wait for our seniors for some more suggestions.
From India, Mohali
No dont send any resignation mail..u can send a mail from your personal ID mentioning the injustice done to u.also mention all details in sequence that how they have forced u to leave organization unwillingly and without any clarification and intimation.Also mention you are not going to resign untill they pay to 2 months salary and relieving letter.
This type of mail will help you for sure.

From India, Mohali
is there any law mandatory to pay 2 months extra by management, Is there any labour act like so to pay the compensation to employee.
From India, Hyderabad
Dear If they have mentioned in offer letter and you are just being terminated on performance issues.Then they have to pay.
In case you have done any breach of trust,Misconduct or some major illegal things then they were not liable to pay.
If they have given the performance issue as the reason of your discontinuation then its mandatory to pay salary or notice period because its mentioned in offer letter n appointment letter.Now its a legal document.Which u can use as a proof and helper

From India, Mohali
The terms of your appointment are quiet and perhaps unnecessarily complex

(I hope the mistakes in the letter are typing errors on your part)

1. They have a notice period of 2 months. But only after you are confirmed (you have a letter that your probation is over and confirmed with the company)

2. They can still terminate without notice for a number of reasons listed.

Termination on account of non-performance without notice is a rare clause. I am not sure if it will stand scrutiny in a court. However, if it does, then ofcourse, the management must have performance parameters and reasons why they consider you have failed. Simply because you have worked for 1.6 years is not a proof that your performance was good. If you joined as a fresher, they would not consider you as productive for the first 6 months anyway. Thereafter, they would try to get you to fall in line with company standards. If you fail, then they will give up somewhere after a year, which seem to fit the pattern here.

I dont know whether your supervisor has been prompting you to improve, or to correct mistakes, or meet coding standards, etc. Further, you have not said whether they have given anything in writing on that front, or whether it was all oral. If there is evidence that they were happy with the work.

Now, whether they were fair or unfair is of little consequence in the larger picture of your career.

1. If evidence is there, you can approach labour officer and file a compliant

2. If evidence is in your official email, its tougher but can still be done (labour officer can ask for copy of emails in your account)

3. If no evidence exists, you can still complain and then the company will have to give their side of the story and evidence (which they can easily create)

More Important, can you spend time fighting the company ?

Also equally important, do you want to fight, considering that any job you take up may do a reference check with the employer ?

Third, at best you are going to get 2 months salary. Are you willing to accept a "Termination" letter in exchange ? That is considered as a major negative by most HR Departments

Considering all that, it would make sense to resign and get a clean exit. However, do negotiate with them to see if they will give you part of the notice pay. Which path to follow you need to decide depending on various circumstances and weighing probabilities that we can not do for you as we will not have the full details. However, I would not favour giving a resignation letter without being clear that the company will give you a clean exit. (definately offer to complete 2 months notice period)

From India, Mumbai

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