Can My Company Force Unpaid Leave or Terminate Without Reason? Legal Insights Needed

Dear Sir,

My company is frequently asking many employees to proceed on long leave without any pay as there is no project within the company right now. What is the legal aspect of these orders?

In my appointment letter, there is a clause stating, "the company can terminate the employment by giving one month notice or salary in lieu of." Can they terminate any employee without any valid reason or due to weak performance appraisal? What compensation should we receive if we do not wish to resign and they decide to terminate us?

Thank you.

They are at liberty to terminate as per the appointment letter. You are entitled to all the statutory benefits like Gratuity (if your service is 5 years and above), leave encashment, if any, PF settlement, notice pay, etc.