Under The Karnataka Shops and Establishments Act, 1961 and the Tamil Nadu Shops and Establishments Act, 1947, an employer cannot terminate an employee that has been with the enterprise for more than six months, except for a ‘reasonable cause’. In addition, an employer must provide a one month notice. If misconduct is the cause for termination, no notice or associated payoff is required.
As you have completed 1 year with organisation they need to pay 1 month notice period else 1 Month Pay, This company violated the law without giving any proper explanation, so you have the full right to go legal process.
Following are the further facts of the case. The company never follows any rules for holidays. Even they cheat their clients.
I worked for this company for more than 1 and half year. At the end of the first year, when I asked to give credit, they said that the company do not give any credit for earned leave even after the expiry of the first year.
Even they do not allow national Holidays i.e. 15th August, 26th January or 2nd October.
The HR and the Directors are crooked people and always lies. Even they do not talk to the employee once they put resignation and I am in touch with some of the ex-employees who were tortured at the time of leaving.
In my opinion, Better to leave such organisation and come out of that environment and start looking new job, where you feel yourself comfortable.
If we see companies work culture, and even their long prospective goal is not clear so working with such organisation it doesn't help your career growth.