Facing Job Loss Due to High Salary: What Are My Legal Options?

Hello friends. I have been working for a JV (Pvt Ltd Co) for the past 5 1/2 years and am responsible for the entire operations of the organization. I was responsible for setting up the organization, recruitment, implementing SOPs, systems, etc., and have been managing it quite successfully since inception. I have been rewarded well by the management for my exceptional performance. However, of late, some of the board members feel that I am paid more and are looking for a replacement at a salary lesser than mine. The organization is doing very well and making handsome profits on a year-on-year basis.

Legal Recourse for Potential Job Termination

What is the legal recourse for me if I am asked to leave?

Thanks.

According to your write-up, it is understood that you are the foundation stone of the company and have implemented SOPs and processes. I feel that when there is no cooperation from the management side, any level of employee cannot deliver. While wishing you all the best and success, I suggest you show all your skills and make them feel that they cannot lose you. Otherwise, there must have been a clause in the appointment letter regarding the notice period. As a senior employee of the company and to avoid any inconvenience to both you and the company, avail of this facility. Because the law of Trots cannot be implemented in India.

Thanks, Sreeram. Pardon my ignorance, but is there no way I can take up the issue in the labor court if things come to such a pass? Asking an employee to leave just because he/she is being paid more is not a very valid reason.

Clarification from Management

Just wish to clarify, though, if the management communicated to you to resign and if they stated the mentioned reason? Do you have this reason written on paper or email by the management?

It does happen that at times the management fails to appreciate the efforts that have been put into the task of establishing the firm and ensuring it goes towards success.

Steps to Address the Situation

At best, I can suggest the following: if your management has not yet asked you to resign, ask them the reason when they do. Seek clarifications if you were ever low on performance. If they mention that they are paying you too much, ask them if they want you to redo your job role and do a job enrichment of what you're currently doing. Clarify what efforts you put in for the firm and justify the pay that you're getting. Do not boast but speak in a mature and calm tone. They can't terminate you because I don't see any grounds to terminate. In order to terminate an employee, one should have a solid reason.

Legal Considerations

About going to court, you cannot go to court if your employer wishes to end the employment (for whatever reasons unless it is injustice) because we have an employment-at-will policy, meaning that either party can terminate the employment. Secondly, do not compare the pay you get to the profit that the firm is generating because in that case, if the firm is running into losses, would you work for free? Always compare the pay to the kind of effort you are putting in.

Clarification on Employment Termination

Asking an employee to leave just because he or she is being paid more is not a very valid reason. Just wish to clarify though, did the management communicate to you to resign and did they state the mentioned reason? Do you have this reason written on paper or email by the management? It does happen that at times the management fails to appreciate the efforts that have been put into the task of establishing the firm and ensuring it goes towards success.

At best, I can suggest the following: If your management has not yet asked you to resign, ask them the reason when they do. Seek clarifications if you were at any time low on performance. If they mention that they are paying you too much, ask them if they want you to redo your job role and do a job enrichment of what you're currently doing. Clarify what efforts you put in for the firm and justify the pay that you're getting. Do not boast but speak in a mature and calm tone. They can't terminate you because I don't see any grounds to terminate. In order to terminate an employee, one should have a solid reason.

Regarding going to court, you cannot go to court if your employer wishes to end the employment (for whatever reasons unless it is injustice) because we have an employment-at-will policy meaning that either party can terminate the employment.

Secondly, do not compare the pay you get to the profit that the firm is generating because in that case, if the firm is running into losses, would you work for free? Always compare the pay to the kind of effort you are putting in.

Thanks, Ankita. The reference to super profits was only to highlight the fact that the company is doing well and is not contemplating replacement on account of the organization not performing well. The discussion to add more to my portfolio of responsibility has already happened and they are unable to come up with more work. The irony/point I am trying to make here is that an individual who has worked diligently and was rewarded by the management in terms of good increments is now being thought of being replaced because of the view of some people that I am being paid too much. Hence the question of legal recourse.

Hello HealDida,

In my comments, I was trying to be a devil's advocate as it is essential to know the other side's story sometimes. As I said, it would be really difficult to go on appreciating an employee's efforts when they think that it involves too much money.

General Example of Cost vs. Value

Let's take a very general example: We need advice on our business, and we have two consultants. One is very experienced and has proven results and hence is premium. The other one is cheap and comparatively a starter and not so much experienced. If we have to shed money for one single piece of advice, we would perhaps choose the latter unless we know that the former is actually worth the price.

Steps to Address the Situation

- Communicate with your management that you are open to discussing the issue and coming to a mutual agreement on the cause.
- Do a brief analysis of your job role and put on paper every single task you did, and also add the end result. (For example, say you implemented 5 ideas, out of which 4 worked but 1 didn't, add that 1 failed idea as well. This would show that you are trying to innovate.)
- Do a quick survey in your professional network of the salary range for people of your experience and decide if you are way higher than the industrial norm; if not, you can educate your management about the same.
- Dig out your previous performance appraisal records if accessible and try to make your point.

Basically, I do not want you to go to management and try to seek their help and charity. I want you to be firm, strong, and handle the situation more maturely and calmly. Show them your efforts and your worth, and what you are paid should be just fine with them. Also, educate them that since you've been on board for X years, you know the market, and you can help develop better strategies in the future as well. Whereas if a newbie is joined (even though experienced, would be a new person in the firm), they would take some time to get adjusted in the new shoes, let alone get running in them.

If they are not convinced, I do not think we can do much about it. At least ask them that for good times' sake they keep you until you get the next job or recommend you in their professional network.

Hope it helped. 

I agree with what Ms. Ankita has said. You cannot do much in this regard if your management feels like you are paid more than what you deserve. In the agreement, it is clearly mentioned that either party can terminate the contract. I suggest you not go for legal action as this doesn't show good business acumen. You are experienced and can join any good organization where your efforts will be appreciated.

Wishing you good luck for your future.

Like (Cite Contribution) mentioned, this could be a case of "Resource optimization".

Management Concerns

Another possibility could be that the management feels 'threatened' by your growing stature—especially since you mention it's a JV. Is the other partner in the venture foreign? If yes, this is more likely, since many foreign JV partners look at such a situation differently—which may not be in tune with the Indian JV partner/management (meaning they feel threatened that YOU could replace them in the long run—from the management perspective, not the investment perspective).

Reassessing Your Position

Given the situation, suggest looking at it differently—the fact that you seem to have increased the profits for the company and you are, sort of, the bulwark for the company operations says a lot about your caliber and capabilities, as other members too pointed out.

Maybe it's his way of hinting to you that the time has come for you to move on and cash in on your skills better? You haven't mentioned which sector/domain you work in, but whichever sector you are in, your skills would be best suited for any company that's a start-up or a company that is looking for someone to handle the scaling-up of operations.

Exploring Options

Like Ankita Shah mentioned, you can do a quick survey in your professional network to determine the salary range for your experience level and see if this can help you address the concerns in your present company—but at the same time, please be mentally prepared to move out if that's what the management wants. Such a survey would help you in such an eventuality.

While understanding your wish to explore all options, including the 'legal recourse' angle, please note that you are different from others in one crucial aspect: you head the show. And any legal action could have a bearing on your future—in the way companies 'perceive' your actions. Not that 'legal action' is totally barred or to be avoided, but I suggest treating it as an option based on the cost-benefits. In this case, I see the long-term harm as far higher than the short-term benefits. Hope you get the point.

Conclusion

To summarize, I can only reiterate what Ankita Shah mentioned: "If they are not convinced, I do not think we can do much about it. At least ask them that for good times' sake they keep you until you get your next job or recommend you in their professional network."

All the Best.

Regards,
TS

I am in agreement with Ms. (Cite Contribution). See this development as an opportunity and not a threat. Maybe it's a blessing in disguise. I also don't think taking legal action will be of any use. Even if you win, the confidence in management will be lost, and so will be the charm of the job. If they have already chosen the new person, they will pursue their goal. Try to negotiate if they can retain you as an advisor or in another capacity that frees you from the daily grind while maintaining a respectful relationship with the employer. This way, you will have the freedom to pursue your career with another employer or start your own business.

Kind regards

You have received good suggestions. Since you are a brilliant manager in the company, you may like to explore further options within this company to be more innovative and indispensable. Also, you need not beg them; however, you can give your suggestions for additional responsibilities for which you need to explore yourself. Suggest some better ways of improvement in the company's profits.

Simultaneously, you may explore options outside the company as well in some startups wherein even if you have to sacrifice some minor tolerable part of your current emoluments, you may still stand to gain. Focus should be on continuous learning and improvement in professionalism in the chosen field.

Best wishes,

OP SAXENA

This situation is not new to the corporate world. Maybe your usefulness has lapsed in the opinion of the decision-makers who may feel that they can conduct their business without your involvement.

Working Yourself Out Of A Job

"Working Yourself Out Of A Job" is something you will have to take in your stride. I will give you one useful "mantra" – when you have been made to feel unwanted, it is best to explore other options and move out before your employers ask you to. I am afraid resorting to legal options is not a very good idea.

Best Wishes,
Vasant Nair

Every 'accident' creates an 'opportunity'. If one door is shut, another door opens up. Don't lose heart. Prepare a nice CV, incorporating all your achievements and accomplishments in the present company, and post it on job portals. If you are really meritorious, I am sure you will land in a better job very soon. Instead of being thrown out, you can submit your resignation and walk out! Who knows, you may end up in a better job than where you are now. You can choose a company where your performance is recognized, and your efforts are appreciated. They may regret your absence sooner rather than later. Best wishes.

While appreciating others' opinions and suggestions, I tend to feel that Vasant has hit the nail on the head. It is a common tendency of small and new Indian companies to hire a key resource at any salary asked, exploit his skills to the hilt, and once his utility is over and others can take over, to discard the resource who helped in setting up everything.

We have come across many such cases in this forum, wherein sometimes a new, fresh HR, who is not aware of the past performance of the person, is given the task of firing such individuals. Sometimes they will put the blame on the "attitude" of the person, as it's difficult to find performance issues in such situations.

Since it is difficult to change or control the world, it would be more appropriate if one considers changing one's own thinking and priorities for action. One should consider his role as a specialist who is able to command such a high salary in the initial stages. Once he sees his utility on the wane or his targets and tasks being accomplished, he should start looking for other opportunities before the company asks him to leave.

One should remember that even an innovator like Steve Jobs was forced to leave Apple, the company he co-founded!

Warm regards.

One of the best threads I have ever come across in my life. Wonderful suggestions posted by experts, and it's really worth reading again and again. I wish not to repeat the same. If you are aware of your caliber and competencies, move ahead in your life rather than considering this as a threat to your current role. Don't give up. Given an opportunity, I am sure you can do better than expected. Time is the best healer, and no one knows what may happen next, but for sure, good things will happen with good people. This is just turbulence. Consider this as your examination period, and you need to score the maximum. Maybe a good opportunity is waiting for you somewhere else. Just be positive and please maintain a healthy relationship with your management. Never let them feel your weakness. Please don't speak or discuss anything with them unless they initiate it. Your loyalty will be rewarded by the ALMIGHTY. Please be honest and sincere, the way you were and are. Later, they may drop their plans due to your KIND ATTITUDE (GOODNESS).

Last but not least, please do not give preference to money in your life. Understand your requirements and live a contented life rather than seeking more challenging assignments, which may not meet your health conditions as age is also one of the performance factors.

Good Luck.

With profound regards

In today's world, there is no permanent job in any company. It's commendable that you gave your best to the company to establish a presence in the market, but at the same time, your skills are also being polished. Once the image deteriorates at the management level, a significant effort is required to rebuild it. In today's scenario, the competition for skills, knowledge, and qualifications is intense. It's advisable to explore opportunities to move up and consider trying a job in another company where you can fully utilize your skills.

Best of luck to you...

Regards,
Kasim Ansari