Facing Unfair Termination After Resignation: Can I Claim My Dues and Take Legal Action?

Please Help with Next Step:

History: An employee is terminated on false grounds, such as misconduct—giving a bribe against the organization. However, he has submitted his resignation, but instead of accepting it, the organization terminates the employee for the above reason.

Queries to Ask:

1. The organization has withheld the last 4 months' salary of this employee. Why 4 months? All salaries were withheld because the company was unable to pay its employees due to a lack of funds. The company is not paying the employee his dues and Full and Final settlement (F&F). Is the company allowed to take such action, like not giving dues and F&F in the case of termination, as there is no such clause mentioned in the offer letter? If not, how can one claim dues from the organization? Can the individual take legal action?

2. The termination was immediate, as the employee was in the probation period. The offer letter clearly states that in the case of termination during the probation period, the company is liable to provide a 2-week notice or salary in lieu. The organization is also not providing this to the employee.

3. How can an organization issue a termination letter after receiving a resignation from an employee? Is it correct to take this case to court as the organization is not willing to clear the employee's dues, and no experience letter is being provided?

Please help!!

Regards

Please clarify your actual concerns because your question is not clear. Here are some points to note:

1. **Holding of Salary for 4 Months:** If a company finds an employee involved in any anti-activities, the company may withhold the salary for the next 4 months or for any duration. However, the company should pay at least 60% of the salary to cover household expenses.

2. **Termination:** If the company has not accepted the resignation, then the company can proceed with termination.

3. **Legal Action:** Without a clear understanding of the situation, I cannot provide specific advice.

Regards,
Hemant Kumar
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If the post is about a true case, then it would make sense to include some basic details: Is the concerned employee you? If not, what is the employee's relation to you, and what is your interest in the matter?

Are the accusations true, false, or do you believe they are false and wish them to be false?

I still do not understand why an employee would remain when the company has not paid him for 4 months. I can understand permanent employees willing to stay on, but during probation? Did he work for free?

Back to the Original Question

The company can terminate him, even if he has resigned. If he is terminated during probation, with no reason given as allowed under the terms of employment, then he must receive his notice pay as stated in the appointment letter or standing orders.

If the termination is on grounds of misconduct and is serious, involving moral turpitude, then no notice pay is required. However, a domestic inquiry must be conducted, and the employee should be given an opportunity to be heard and allowed to defend himself.

Regarding Non-Payment of Salary

You can complain to the labor commissioner's office and seek help. Going to court may not be meaningful due to the high time and cost involved. It might make more sense to move to another job. If the company cannot pay salaries for 4 months and the owners cannot or will not provide funds, you may ultimately not receive the money.

The Experience Letter

It's 4 months under probation with termination under the accusation of bribery. Does such a letter have any value? Instead, state that you worked for 4 months, but they couldn't pay you, so you left and have no experience letter. Explain that you didn't think it was worth wasting more time there hoping to get an experience letter and working without pay for another 2 months.

Since we don't have the agreement, we on the forum have to assume it's standard. This always happens with us here 

Considerations on the Employee's Situation

Which is why I started my point by saying - if the post is true... Because we don't know whether the employee was innocent or guilty. So I have tried to consider standard conditions and given the options that I think are the best. It's all subject to the complete information being available.

However, I do not think the employment agreement as such would make much of a difference. First, there are already laws that govern such things (Industrial Employment Standing Orders Act being the main) and existing HR processes, employee handbook, and manual (to the extent it does not violate the law).

I do not think most appointment letters or their attachments would give details of the process to be followed in case of fraud, theft, negligence, or whatever the employee was actually accused of.

We do not even know what the termination letter says. Does it say termination during probation under the terms of the appointment letter? Or does it say termination on account of fraud? If it's the latter, then the company has probably made a grave mistake in not conducting a domestic enquiry.

I hope I understood your point and am not barking in the wrong direction.

Legal Implications of Withholding Employee Salary

Merely leveling an allegation against anyone without valid proof will not stand the test of law in court. Therefore, the company cannot withhold any employee's salary without a valid reason supported by appropriate evidence. Termination issued after an employee has submitted their resignation can be seen as an afterthought by the employer, attempting to avoid paying any outstanding dues owed to the employee.

There are various Supreme Court judgments clearly stating that an employer must prioritize paying the salaries of all employees before settling any other debts. In cases of necessity, the employer may even need to sell personal property to fulfill their obligations to their employees.

To initiate action, you can file a First Information Report (FIR) with the local police station against the employer for criminal breach of trust due to non-payment of salary as per the terms and conditions of your employment contract.

Regards,
Octavious

Termination Letter Does Not Define Any Fraud or Misconduct

It only defines "Termination of Services" without highlighting any reason. It's all verbal (serious misconduct like giving/taking a bribe, etc.).

It seems like an aftereffect of the submission of my resignation, as the company is not willing to pay dues.

Questions:

- How can I get my pending dues as the organization is not responding to repeated polite requests (4 months' salary, reimbursements, etc.)?
- Am I eligible for notice pay? The offer letter clearly states: 2 weeks' notice period or salary if terminated during probation.
- What are the chances of winning the case if I present this in court, as it's already 2 weeks past?

Please suggest! Thanks all for your suggestions.

Regards

Court Action and Employment Issues in India

As we have repeatedly said on this forum, any court action in India takes a very long time and, in the end, is probably found to be not worth it. In any case, what will you get from a company that does not have money to pay its employees for 4 months? (In fact, I still can't understand why someone would work for 4 months without a salary.)

Without having all the details, documents, etc., no one can tell you whether you can win the case. Even then, a lot depends on what defense the company takes. You have not stated where your employer was based, whether it's a company or proprietor, whether it's an office or factory, the number of people employed, your salary level, etc. We do not know what was in your appointment letter or in the termination letter.

So how do you expect an answer to your above question other than blatant guesswork?

Employer's Obligation to Pay Employee Salaries

If the employer is a company or an LLP, the owner is not required to sell his personal property to pay the salary of the employees. Please show me which judgment says so.

I am not sure where you got the impression or idea that going legal is a quick-fix solution to situations like yours. Many details of your situation are hazy at best or missing at worst.

Like Saswata Banerjee mentioned, with so many grey areas or missing information in your posting, how do you expect anyone to give realistic and actionable suggestions?

Regarding your query: "What are the chances of winning the case if I present this in court as it's already 2 weeks past," even assuming for a moment that the members in this forum have all the details of your situation, do you think anyone can give a 100% assurance that you will get your money by going legal? Even if you hire the best legal minds in the country (which would cost a lot), there would still be at least a 1% chance that the court decision may go against you. Are you ready for that? This is in addition to the time, effort, and money that you would need to spend.

As it is, it seems like you are from the middle class (not that this aspect is above all others in the case). So, at the end of the day, what's your priority: to cut down your losses or to spend more to aim for something that always has some level of uncertainty in the end result? The choice is yours.

Like Saswata Banerjee suggested, just move on in your career and life, learning from this experience. But, as mentioned above, the choice is yours.

All the best.

Regards,
TS

1. You have already taken action, i.e., termination of service; now you cannot change the reason.

2. Termination seems to be under termination simpliciter condition by referring to the terms of appointment.

3. In such cases, the employee needs to pay the notice period.

4. However, if you have referred to specific allegations/misconduct as stated above, i.e., misappropriation of funds, you could have withheld his dues subject to holding an inquiry and proving the alleged charges in his termination letter.

Regards,
Suresh K. Singh

I agree with the comments given by senior members. I think a few points were missed which need to be clarified.

1. Have you resigned immediately after the incident of this misconduct (as stated by you) or was this done 4 months prior to your termination? It might be possible that during the internal inquiry, you submitted the resignation, and that's why the employer rejected your resignation, terminated your employment, and held your amount.

2. On the contrary, did the employer not want to pay you salary for 4 months and terminate you harshly?

3. You were on probation. We would like to know for how long you worked with that organization. As you were on probation, if your organization alleged you for such misconduct (for giving a bribe against the organization) within a short span in the organization, it's conceivable.

Before taking any litigation, you have to think and act on the actual incident. If you are at fault, we need to suggest what action needs to be taken further. Legal action will take a lot of time and money, but if you are innocent and want to vindicate yourself, you can proceed with litigation. You can also send a formal notice through a lawyer to resolve the issue within a specific timeframe as it has already taken a long time. Please keep in mind it's a lengthy procedure, and in most cases, it doesn't significantly affect the organization.

An internal committee must be formed by the organization to prove the incident within a stipulated time of 1-2 months. If you are looking for a specific clause to mention holding the salary in major misconducts, then I think you are moving in the wrong direction. They may just be delaying to bother you.

However, as per the INDUSTRIAL EMPLOYMENT (STANDING ORDERS), CENTRAL RULES, 1946, Notification No. L.R. 11 (37), dated the 18th December 1946, Para 14 is given below, but we need to know if your employment will be applicable here or not. Please note, the allegation on your employment falls under the major misconduct of any law (employment).

I also request senior members to correct/suggest my views.

Simple Questions and Few Facts:

1. The termination letter states the following as highlighted:
Sub: Termination of Services
Thank you for your contribution with XXXXXXXX to date. The management has decided that we no longer require your services. Please take this as official notice, as of DATE, and you are hereby relieved from your services from today (i.e., 17th October 2014) onward. You are requested to hand over the company assets to the concerned department. Thank you for your esteemed services once again.
Thanks and Regards,

2. I was under probation, and resignation was given on 16th Oct 14 (asking for pending salaries on my last day).
Question (Please Help): How can I join a new organization with this termination letter, and what reason can I give the new organization for not having a relieving letter?
Please help!!

The answer to your last question is the only one on which I can offer a suggestion. You can inform your prospective employer that the company had not been paying salaries. Three months' salary was pending. Serving a month's notice period and then losing more money didn't make sense, so I resigned and left. HR informally mentioned to me that attempting to recover this money would be impractical.

Company Wind-Up and Employee Termination: Salary Liabilities

Please let me know if a company winds up and employers terminate employees due to cost-cutting, would the company be liable to pay the last and next month's salary to employees? Also, how many months of salary will the employees receive from that company?

Regards

Company Wind-Up and Employee Termination: Salary Obligations

Please let me know if a company winds up and employers terminate employees due to cost-cutting, would the company be liable to pay the last and next month's salary to employees or not? Additionally, how many months' salary will the employees receive from that company?

Regards,
Ruksana
HR

Employee Compensation and Termination Queries

All employees will be eligible for notice pay as per the terms in their appointment letter or standing orders, along with gratuity for those who have been employed for more than 5 years. Additionally, if covered under the Industrial Disputes Act, they will be entitled to retrenchment compensation, generally amounting to 1 month's salary for each year worked.

Workplace Challenges and Unfair Practices

1. While joining, the boss told me to work extra time once or twice a month. However, after joining, within a few days, she asked me to stay extra time to complete work. I have started staying a little later to finish the work. After a month, she informed me that I cannot leave without completing the work, and if I do, she will deduct from my salary. Employees must arrive on time, otherwise, they will be marked late. With 3 late marks, it equates to taking a day off. Additionally, I must stay even later to complete the work. There were a couple of instances where I was late due to train delays, but she still made me stay late. It seems like I am expected to complete a year's worth of work in just two months. Of course, there was another employee, but the boss mostly sent him outside.

2. The boss provided me with calculations for the provident fund, which essentially required me to adjust last year's salary calculations. I had to do this 6 times as the boss himself was uncertain about the calculations. This required me to spend extra time due to his lack of knowledge within a short timeframe. This was not the only task; there were numerous other responsibilities such as VAT calculations, service tax, salary calculations, voucher clearance, and manual tasks, among others.

3. She would assign one task and within 5 minutes, another, and then 3 tasks consecutively without allowing sufficient time for completion, all while shouting harshly and blaming.

4. She would ask me to come over to hand her a file or for a small task, or find a paper that she had kept herself, only to claim that I was responsible for it. She repeated this daily, loudly.

5. Once, when I had a fever and took permission to stay at home, she informed me that from now on, I couldn't take a leave or even a half-day off.

6. After a few days, she instructed me to go outside to collect files in the evening at 5 o'clock. I refused as I anticipated significant delays in reaching home due to traffic. Despite her repeated requests, I declined to go.

In my offer letter, it is stated that I must provide one month's notice before leaving the organization. However, I was so overwhelmed by all these situations that it affected my health. It was particularly distressing during the festive season when I was unwell. I reached a point where I decided to reject the job offer via the company's email. The boss demanded that I stay late or sign a termination letter, but I refused to comply.

Following this, we argued, and I expressed my inability to stay any longer and my desire to settle any outstanding dues. She instructed me to call her on a specific date. On that day, she declared that she would not release my last month's salary under any circumstances. My question is, what should I do now?

Workplace Challenges and Unfair Practices

1. While joining, the boss told me to work extra time once or twice a month. However, after joining, within a few days, she instructed me to stay extra hours to complete the work. Consequently, I started staying late to finish tasks. After a month, she informed me that I couldn't leave until the work was completed, threatening to deduct from my salary otherwise. Employees are required to arrive on time, or they will be marked as late. After accumulating 3 late marks, one day of leave was taken, and additional hours were required to catch up on work. On two occasions, I was late due to train delays of only 2 minutes, yet I was still required to stay late. This situation led to the expectation of completing a year's work within just 2 months. There was another employee present, but the boss frequently sent them outside.

2. The boss provided me with calculations for the provident fund, which essentially required me to adjust the previous year's salary calculations. I had to redo this task 6 times as per the boss's instructions since she was unsure about the calculations. Consequently, I had to dedicate extra time due to her lack of knowledge within a very short timeframe. This was not the only task; there were numerous other responsibilities such as VAT calculations, service tax, salary calculations, voucher clearance, manual work, and more.

3. She would assign multiple tasks simultaneously, with a new task given every 5 minutes, providing inadequate time to focus on a single task. Her communication style was harsh and blaming.

4. She would call me into her cabin for minor tasks like handing her a file or finding a paper, which she claimed I had misplaced, despite her being the one who had kept it. This scenario occurred daily, with her loudly stating that the item was my responsibility.

5. Once, when I had a fever and requested permission to stay at home, she informed me that I could no longer take leave or half-days moving forward.

6. Some days later, she instructed me to go outside to collect files in the evening at 5 o'clock. I declined the task, citing the potential delay in reaching home by 11 pm due to traffic. Despite her repeated requests, I refused to go. The requirement to perform such tasks was not outlined in the offer letter.

In the offer letter, it is stated that one must provide a one-month notice before leaving the organization. However, due to the extreme stress and resulting illness caused by the situation, I felt compelled to resign. This decision was made during a festival season when I was unwell and unable to enjoy the festivities. I sent a rejection email from the company's email address. The boss insisted that I either stay late or sign a termination letter, but I declined both requests.

During a subsequent discussion, I expressed my inability to continue and requested to settle any outstanding dues. She instructed me to contact her on a specified date, only to later inform me that she would not release my last month's salary under any circumstances. My final month's payment is pending; please advise on the next steps.

Regards

Starting a New Thread for Better Visibility

First, Malays start a new thread. If you post a new problem in an existing thread, people will not notice it.

Addressing Your Problem

You need to give a month's notice. You have stopped attending the office without giving a notice period, so the company can refuse to settle your dues. They can deduct your notice pay from your pending salary, which will definitely make it zero. You have nothing in writing to show that your manager asked you not to come from the next day, so there is no help there. The rest of the things you wrote have little relevance and cannot help you in this matter. However, they are pretty normal occurrences in employment.

Key Points on Employee Rights and Termination

Point 1: As per Indian law, a company or employer has no right to withhold an employee's salary without a valid reason.

Point 2: During the resignation period, an employer can terminate an employee, but any allegations against the employee must be proven guilty of an offense. Both parties can involve a third party or arbitrator to reach a conclusion.

Point 3: All compliance policies should be explained to employees upon joining and acknowledged by them.

Point 4: Termination clauses should be clearly stated in the Offer, Appointment, and Contract of Employment letters. Termination must be legal as illegal termination can harm the employer. An employee can file a case against the employer if they are terminated without a valid reason.

Many Thanks,

Regards, Naveen

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