Sudden Termination Without Notice: Can I Take Legal Action Against My FMCG Employer?

I am working with an FMCG company as a Manager for 1 year and 3 months. Suddenly, on 10th January 2014, the company sent a termination email without any reason and without any notice. The company has terminated all employees across India. Additionally, the company has not paid my December month salary and has not provided the TA DA for the months of November and December. Can anyone suggest if I can take legal action against the company?

Since you have been employed as a manager, the provisions of the ID Act, 1947 will not be applicable. Your post is also silent about the terms and conditions of your appointment. However, the current action of the management in terminating the services of all India employees without any prior notice, as stated by you, seems arbitrary and goes against the Principles of Natural Justice. Your only recourse is through a Civil Remedy. It would be beneficial for all affected employees to come together and seek the support of a Counsel well-versed in service matters.

Thank you.

Regards

If we decide to pursue a case against the company, how long will it take, in terms of days or years, to resolve?

I am not sure how long it will take in a Civil Court. It depends on how swiftly you act and how your lawyer conducts the case. Still, it would be better if you first try direct negotiations with your employer to get your experience certificate and the amounts due to you. From your description, it appears that the management does not seem to be a fair and progressive employer, and as such, there are plenty of possibilities that they may drag out the court proceedings as long as they can. In that case, you should be prepared to be strong and have the resilience to withstand it. Therefore, be rational rather than emotional. Best of luck in your next move!

Yes, certainly you can take legal action against them, but before taking up this matter with a lawyer, I would suggest you meet your local/regional labor commissioner/inspector with your written complaint against your employer and also to your local police. You also have to supply your documents to them with your written complaint, such as your appointment letter along with the issued termination letter by them, your salary slips/bank statement, and your EPF details.

Understanding Termination Reasons

Second, if it is a TERMINATION, there must be a valid reason or something wrong on the employee's end which forced them to take this action. Therefore, I would like to know more about this termination letter and the reasons stated in it by them.

Reviewing Employment Terms

Third, you also need to read your appointment letter and termination clause for more information, which will give you the T&C of your employment, which both your employer and you are bound to follow.

Concerns About Unpaid Dues

Fourth, you said that you got this TERMINATION letter from your employer on the 10th of Jan, 2014, and also have not been provided your salary for December 2013 and other dues. This clearly indicates there is something wrong, which you must discover or share with us if there is anything you have forgotten to include in your query. To terminate any employee, there is a procedure which the employer has to adopt/follow and issue a notice to the employee before issuing a termination letter by stating a valid reason or something which favors the employer’s action and against the employee. (Employment/Appointment Letter T&C’s apply)

Moreover, TERMINATION never implies that an employee who’s going to be terminated for whatever respective reason won't be able to get his/her dues or the pending previous month's salary. A complete settlement (F&F) with the effective date of termination (if there was no notice period or special terms defined for the same) is also a right of the said employee.

What I feel is that you still have to share complete details of your case and why your salary and dues for November-December 2013 were not paid previously.

Retrenchment vs. Termination

The other thing suggested by your query and your pending dues is about the financial crisis of your company, which forced them to take action, which is RETRENCHMENT, but it is certainly not a TERMINATION.

Lastly, in both cases, your applicable employment terms can help you a lot actually.

Regards,

Anil is correct. Do not cooperate with any attempt by your employer or anyone who can wield influence over you to change the nature of termination. Let it remain as it is, i.e., forceful termination at the behest of the employer. Any compromise, if any, should be mutually beneficial.

If I do not sign the no dues, the company will not provide me with a relieving letter. What about my future career? Every company demands a relieving letter. Please suggest what I should do.

I would like to provide you with some more information in this regard. The courts have established norms regarding who should be called a manager, and mere designation alone will not determine a person's status. You need to determine whether you fall within these norms. If you do, you can seek remedies under the Shops and Establishments Act of the respective state, or you can still seek relief under the ID Act. However, as suggested by other experts, the termination is a violation of the provisions of the Act.

Regards,
Murugesan

There won't be smoke without fire. I assume that you haven't disclosed the complete story. Neither have you mentioned the clauses in your employment contract. Please give a clearer picture of the story so that members can advise you better.

Regards,
Deepak

Devika, I am an HR Consultant and have been working for the last 20 years. I am well-versed in HR laws. You can raise your voice against this action.

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I have corrected the spelling and grammar errors in the user's input and adjusted the paragraph formatting for better readability.

If you are a manager, there is no doubt that you do not fall under the purview of the Industrial Disputes Act. You also have not disclosed why they have terminated you—whether it was for cost-cutting, business closure, or any other reason. Also, if other people who have been terminated do not hold positions similar to yours and fall under the category of workmen, they can raise their voices against it. The more people involved, the stronger the case will become.

Please review your appointment letter to determine the notice period you are entitled to. You can approach the Civil court for your dues. In such cases, I often advise sending a legal notice first, and based on my experience, in 95% of cases, the matter gets settled within 2-3 months. Nowadays, most companies prefer to avoid litigation and opt to settle with the other party.

As you described, if employees of the workmen category are terminated without proper notice and compensation, it could pose a headache for the company if those individuals decide to take the matter to the Labour court. Therefore, if possible, please unite and seek assistance from the Labour Commissioner in your area.

Feel free to revert in case of further queries or any doubts.

Regards

Firstly, talk to your HR. Have you received a termination letter from your immediate boss or your company HR? Were you caught engaging in any unethical activities, such as visiting restricted sites on the internet or any kind of misconduct that led to termination? Before taking any legal action, ensure that everything is clear from your side.

There is software available that many companies have purchased, which allows tracing of the workflow from a particular PC. This software can track whichever sites you visit, whatever documents you prepare, and everything that is downloaded. I suggest you speak with your HR.

Thank you.

This termination was received from the HR side. Not only I, but all employees received termination notices via email and hard copy without any prior notice.

One thing you can do is ask your HR for the exact reason for your termination. Your HR should provide the reason, whether it is due to cost-cutting or any unethical reasons. Have there been any recent amalgamations or joint ventures involving your company? Please let me know if you need further assistance.

First, go through your employment terms and conditions. Accordingly, as Mr. Anil rightly said, I suggest you meet with your local/regional labor commissioner/inspector with your written complaint against your employer. Also, reach out to your local police by forming a team that has faced the same problem along with you.

Regards,
Gayathri.