Can I Take Legal Action for Missing Appointment Letter and Denied Benefits After Resigning?

Hi all, I was working in a retail store as a store manager for almost 10 years. Recently, the management has taken over the company (only managing retail operations) and they wanted to remove old staff and replace them with new people. I didn't like the way they were treating the staff and managers, so I resigned in September '13 without any notice. They have deducted my one month's whole salary, citing that I did not give notice. I told them that since I didn't receive any appointment letter, I should not come under this condition. They also said I am not entitled to benefits like gratuity or any other compensations.

Legal Action and Benefits Inquiry

In the relieving letter, they mentioned that I worked from 2004 to 2013 and was drawing a specified amount as my monthly salary. Is this letter sufficient to take legal action against my employer? What other benefits am I supposed to get from my previous company? Please advise.

Thank you.

Well, didn't you ever ask for the appointment letter, and how did you join the company without knowing the terms and conditions or receiving an appointment letter? However, you may consult with the labor officer of your area regarding this.

Understanding Employment Contracts and Legal Rights

Appointment orders are essential for regulating the conditions of service and the relationship between the employee and the employer. However, this does not mean that employment cannot occur without an appointment order, as a contract need not necessarily be in writing; an oral contract is also valid. A written contract is superior because it serves as evidence in case of any dispute.

In an employment contract, while the appointment order is a vital document, the presence of a signature in the attendance register, wage register, etc., is more important.

Notice Pay and Termination

Regarding notice pay, unless otherwise stated, any contract of employment is terminable without notice from the employees. It is true that to terminate an employee, the employer must give notice as provided in the Industrial Disputes Act, but employees are not required to give notice. Therefore, if employed without any conditions of service or appointment order, deducting one month's pay is illegal.

Gratuity and Employment Documentation

If the establishment has employed 10 or more persons at any point, the Payment of Gratuity Act automatically applies. The employer cannot claim exemption from the Gratuity Act. The length of service is crucial for determining the gratuity amount. You should have documentary evidence to show your date of joining. The relieving letter can serve as evidence. However, if the date of joining in the relieving letter is later than the actual date, you will need other documents, like the attendance register or wage register, where you have signed.

Since you have been employed in a managerial capacity, you cannot seek protection from the Labour Department or Labour Officer to recover your notice pay deduction. However, you can approach the appropriate authority under the Payment of Gratuity Act (the same Labour Department) to claim gratuity.

Regards,
Madhu.T.K