Suddenly Fired Without Notice: Seeking Advice on Legal Rights and Next Steps in Labour Court

Dear HR team, I have worked in a Singapore-based IT company located in Bangalore as an "Admin Executive" for four years. All of a sudden, they have sent me a termination letter by email. I was shocked and asked for the reason, but there was no reply from the management. There was no proper reason given, no one-month salary, and not even a notice provided. When I asked for the settlement of my salary (I was supposed to receive a bonus for the year), they replied with "no settlement." I was left jobless with significant commitments, and I had no choice but to file a case in the LABOUR COURT. Now, the opposing lawyer is stating that I am a workman and can be terminated without any notice or a one-month notice period. Kindly advise me on this matter. Thank you.

Unexpected Termination Experience

I had been working for a Singapore/US-based company for 4 years as an Admin. I was working very sincerely, putting my 100% contributions into the company. We were working only 5 days a week, but I was doing all my work on Saturdays, Sundays, and all holidays using my personal laptop and data card while sitting at home due to the time difference between India, Singapore, and the US. I even worked during my maternity period for three months from home.

After the maternity period, I rejoined the company and continued working as usual. However, one Wednesday, I received an email from HR with an attachment. Upon opening the attached letter, I was shocked and cried. Can you guess why? It was a Termination Letter from the company. I couldn't even tolerate it. I was unable to accept this termination without any reason or notice. I was simply shocked and walked out of the office.

The next day, I tried to log in to my email to write an email to my Singapore-based HR but couldn't.

I have gone through both of your postings. You mentioned that you filed a case in the Labour Court. If so, you should fight the case through your advocate and rely on the outcome. Why do you need to bother yourself about what the opposing lawyer says?

Thank you.

In your first post, you said that "Now the opposite lawyer is saying that she is a workman and can terminate without any notice or one month's notice." Let me take it as an error, and the respondent's lawyer (company's lawyer) has said that "she (you) is NOT A WORKMAN." It is common that whenever a case is filed, the company will defend by saying that the person who has filed the case does not fall under a workman as defined in section 2(s) of the Industrial Disputes Act, and hence the suit is not maintainable in the Labour Court.

If, on the other hand, there is no error in your statement or the advocate has said that you were a workman and therefore, the services can be terminated without notice, then the advocate is wrong, and the case will be ordered in your favor only. If the statement reproduced by you is wrong and the company has defended by saying that you were not a workman, then you have to prove that you belonged to the workmen category.

Many courts, including the Supreme Court of India, have interpreted the definition of a workman under section 2(s) to include all employees whose FUNCTIONAL responsibilities do not call for any supervisory or managerial responsibilities. As such, if you have been entrusted with the responsibility of supervising the subordinates with rights of either sanctioning leave to your subordinate(s), conducting performance appraisals of your subordinates, or initiating disciplinary action against your subordinates, then certainly you will be out of the definition of a workman, and your case will be dismissed without a hearing. On the other hand, if you were not given the above-said rights, then you will be coming under the definition of a workman, and as such, you will get all the protection which is conferred on an employee under the Industrial Disputes Act.

Regards,
Madhu.T.K

Please check your letter of appointment. It should have a clause for termination of services and the notice period to be given on both sides. If there is a one-month notice period mentioned to be given by the company, then the company has to give you either one month's notice in writing or relieve you immediately with one month's salary, excluding the days you worked. Also, what's the reason for termination in your letter? They have to provide some reason for termination. The company can terminate only in cases of poor performance or disciplinary issues. If they claim that your performance is not good, then they should have given you a written letter, memo, or email to improve your performance. Only then can they terminate you. Even in disciplinary issues, they should give at least one formal notice to the employee before termination.

If they haven't given you any letters and a one-month notice is required as mentioned in your appointment letter, then they have to pay you one month's salary.

Even though a one-month notice clause is included in the appointment letter, there have been case laws indicating that a simple notice is not sufficient to terminate an employee's services!

Regards,
Rajinder Arora

In my appointment letter, the clause for termination of services states that a one-month notice period should be given by both parties. However, in my case, they did not provide any prior notice or one month's salary. Additionally, in my termination letter, the company cited "downsizing/cost-cutting" as the reason. Could you please advise if the actions taken by the company are legal? The management also did not grant me any time to search for new employment. When I inquired about my salary settlement (including the bonus I was supposed to receive for that year), the company responded that "there is no settlement from the company."

Could you kindly inform me if the judgment is likely to be in my favor, considering that the case is still pending in the "LABOUR COURT"?

Employment Details

My Date of Joining: 26 May 2008
Last Date in the Company worked: 30 November 2011

Am I entitled to any dues from the company? I have only received my November 2011 month salary (they were supposed to pay the December 2011 salary and bonus).

Your kind advice is greatly appreciated.

Thanks and regards,

Natural Justice in Downsizing

In the interest of natural justice, the company needs to inform all employees about downsizing or cost-cutting due to losses well in advance. This ensures that employees are prepared for such changes.

Principle of Downsizing

While downsizing or cost-cutting, they should follow the principle of 'last come, first goes.'

Giving you one month's notice salary is the least the company should have done.

Entitlement to Bonus

If the bonus clause is mentioned in your appointment letter, you are definitely entitled to the bonus.

Best of luck!

Regards,
Rajinder Arora

Dear Amudha, they have to give you a 1-month notice or 1-month salary in lieu of the notice period. Downsizing is fine, but they must provide notice. The bonus depends on the company policy. Check the terms and conditions in your appointment letter regarding the bonus. Was the bonus given yearly or half-yearly? If it was given yearly, you cannot fight for the bonus, as they may provide 10 reasons for not giving it to you. They can simply claim they are experiencing losses, so they cannot pay. However, they must pay 1 month's salary. If you have all the necessary proof, the judgment will surely be in your favor.

Regards

Notice and Compensation in Downsizing Situations

In the interest of natural justice, the company needs to inform all employees well in advance about any intention of downsizing or cost-cutting due to losses. This ensures that employees are prepared for such changes.

While downsizing or cost-cutting, the principle of 'last come, first goes' should be followed.

Providing a one-month notice salary is the least the company should have done.

If the bonus clause is mentioned in your appointment letter, you are definitely entitled to the bonus.

Best of luck!

Regards,
Rajinder Arora

I understand your concern and what you are going through at this time. As you said, your matter is in the Labour Court. In the Labour Court, you must have filed a case through an advocate, and the advocate must have considered all aspects of your termination. You just have to trust your advocate. Prima facie, your case seems to be strong in your favor. Decisions in labor courts are mostly in favor of the employee.

Don't be worried! My best wishes to you.

Notice Period and Legal Entitlements

Weren't you given an offer letter or an appointment letter which stated that either of you had to give a notice of 1 or 2 months? If yes, the company is bound to pay you the notice pay and any legal expenses you incur in the case. Or if you do not have a joining letter or offer letter, what does the company HR policy state? If it mentions that the employee has to give a one-month notice, again, you are legally entitled to payment in lieu of notice.

However, notice or payment in lieu of notice is not given in the case of termination due to disciplinary action. So be sure of facts and go ahead for the case.

Regards,
Manoj

Termination Without Notice: Legal Implications

I have received my appointment letter, which states that a one-month notice period must be given by both parties for termination of services. However, in my case, they did not provide any prior notice or one month's salary. Additionally, in my termination letter, the company cited "downsizing/cost-cutting" as the reason, despite the company's business performing well. As I was in Admin-operations, I am aware of the company's income. They did not allow me an opportunity to discuss the matter with them, nor did they provide time to seek new employment. Could you please advise if the company's actions towards me are legal? When I inquired about my salary settlement (including the bonus for that year that I was supposed to receive), the company responded that no settlement would be made.

I am seeking your guidance on whether the judgment will be in my favor, as the case is currently pending in the LABOUR COURT.

Employment Details

- My Date of Joining: 26 May 2008
- Last Date Worked in the Company: 30 November 2011

Am I entitled to any dues from the company? I have only received my November 2011 salary (I was also supposed to be paid for December 2011 and receive a bonus).

I have requested the Labour Court to order the company to pay me 50% of my salary until the case is resolved. Your kind advice is greatly appreciated.

Sincerely,
Regards

In this case, Amudha, you will receive payment for one month's notice. As for the bonus, it depends on the company's HR policy, which should be documented. Ask one of your colleagues to obtain the HR policy and check the entitlement for the bonus. Some companies have a clause requiring a minimum of 6 months of service before the bonus becomes due, while others only pay employees who are on the rolls on a particular date.

Don't worry, the case is in your favor unless they can prove some wrongdoing on your part.

However, I am not sure if your case would be decided by the labor court (I am really not sure, as I have never studied the jurisdiction of labor courts). Since you are a staff member, working under an offer letter accepted by you, it will surely come under breach of contract. So, keep calm and go through the proceedings. If the labor court refuses to entertain the application due to jurisdictional issues, go to the local court and file a simple breach of contract case based on your offer letter.

Their HR Department is very poor; otherwise, they should have called you and counseled you on the impending termination and given you an opportunity to find another job. Resignations and terminations are common practices in the corporate world. The payout is not too much, and the employee leaves without the feeling of being cheated.

Termination Without Notice: Seeking Advice

I work in a company in Dehradun, India, as a GRAPHIC DESIGNER. As it is an MNC, it's a NIGHT SHIFT job, and we have a 5-day work week system. On Friday, at the start of my shift, my boss mentioned he wanted to talk to me for some unspecified reason.

On Monday, during my shift, he called me into his office and said, "Gaurav, I have bad news. We are letting you go," without any prior warning. It was a shock to me. He stated that my termination was due to "Major Performance Issues" regarding my work.

I don't understand how he could just inform me that "I am being let go." He also mentioned that I could go home that day if I wanted, which felt a bit insensitive and rude.

He then explained all the details associated with my termination. I received no notice, and I am concerned about how to manage daily expenses while looking for another job. He also instructed me to come the next day to collect my experience letter and complete all the necessary documents.

What should I do? Please advise. Everyone says I do good work, and even my manager has given positive feedback. What should I do?

Regards