Hello, I had been working for a Multinational Bank for last 2 year 3 months. Their employment offer says "Either party can terminate employment contract without assigning any reason with notice of 3 months or in-lue salary" After 12 of joining the firm I went on Maternity leave as per the company policy. I was not given any increment and Bonus that year bcos of my taking the maternity leave. Last 4 months my company was asking form all the employees in Banking division to resign from the jobs. After great perusal most of the team member including my Immediate BOSS resigned. On my confrontation reason they stated was that market recession and I'm not performing to which I opposed and clarified that Since last 15 months my appraisal process has not happened and there is no formal notification of my non- performance. Their pressure increased subjecting me to surrender and submit the resignation. I was on sick leave from Dec 9th - 12th 2008 when HR send me the termination letter dated 10th Dec 2008 vide Registered post at my house address under clause "Employment terminated without assigning any reason". This letter was delivered to my residence on 16th Dec 2008. I accepted the fate and though of departing in good terms. My last date of decided 31st Dec 2008 and for rest of the period they agreed to pay notice pay. To my surprised for my full and final payment they gave my notice pay only on Basic and HRA not on my CTC. I have other components which were designed to save tax like driver salary, medical , LTA etc. Even if I don't pay any bills my accrued money is made taxable and paid to my at end of the year deducting the applicable tax. Question: 1. Is my termination legal or illegal ? 2. I understand Indian Employment Law allows the company to terminate the employment without stating the reason only during retrenchment / bankcorrupcy etc ? 3. All employees of Banking division has resigned and I'm terminated . At last only 1 employee is left to head the Delhi Branch. They are looking for the replacement for all the employees resigned / terminated. This activity was done in order to restructure the org. So termination without assigning the reason valid ? 4. HR told they terminated my employment b'cos of my performance where as I have not been appraised since last 14 months and no official memo has been issues indicating my performance. Is this step justified by them ? 5. company has not deposited my salary till date and not releasing my salary on Annual Salary but on Basic and HRA leading to huge difference. Is it legal for them to do so ? 6. I understand in case company is terminating the employment other then any sever act done by me they are liable to pay me the gratuity for the year I have served ? Is my understanding correct ? 7. Am I eligible for PF during the notice period by employer ? Even they made my last working day as 31st Dec 2008 instead of 10th March 2008 ? 8. Termination notice starts from when a. When company write the termination letter and dispatches it? b. When the termination letter / correspondence reaches the employee ? In my case letter was dispatched on 10th Dec 2008 and reached my on 16th Dec 2008. Any company is calculating the termination from 10th Dec 2008. Is it right for them to do so specially when I was on sick leave? 9. What action can be taken against the company for mental harassment I have been going through? Please advice and help. regards, Renu Sharma