How Can I Claim Compensation After Sudden Termination from My Job?

Dear Seniors/HR,

I really need advice from you. I was an employee in a private limited company in Delhi. I have worked with this company for almost 7 years, and it has around 8-10 employees all over India. Actually, it is an MNC with its headquarters in Delhi, where I was posted. Recently, due to some internal disputes, the company terminated me with immediate effect and did not provide any compensation. They terminated me with just a 3-4 days' notice, after I had dedicated 24/7 work for 7 years. It was disheartening to be terminated with just a termination letter.

Now, I seek assistance from you on how I can claim compensation.

I was on the company's payroll as they transferred my salary directly into my account from the company account. I have an email from the company email ID, a TDS certificate, and a company experience certificate as proof of my employment.

Just for your information, they were not deducting any PF, and I was receiving my salary after TDS deduction.

I am currently facing financial difficulties and need your help with my claim.

Thanks,

Regards,
Sumit Arora
[Email Removed For Privacy Reasons]

If you are covered under the definition of a workman of the ID Act, then your termination is illegal without paying you notice in lieu and retrenchment compensation. Make a complaint before the labor commissioner to have it set aside.

Thanks,
Sushi

Please mention your designation, the cause/reason of your termination, and whether the company is covered under the S&E Act or Factories Act to provide an appropriate view. You are also requested to review your appointment terms and conditions (termination clause) and the code of conduct.

Hi Sir Sushil,

Please suggest how to check the definition of the Workman Act.

Hi Sir Saji,

My last designation with this company was Senior Technical Support Executive. On the termination paper, the reason mentioned was misbehavior and a wrong attitude towards the company. However, there was no incident and no proof of such behavior. Even my other team members can provide me with written confirmation of this false allegation.

I don't have any knowledge of the S&E or Factories Act. I only know that this company is a Private Limited and has the proper PAN and TAN numbers.

I do not think you will find things that easy. The fact that you have worked hard for 7 years and 24/7 has no meaning for anyone today, and definitely no meaning in law.

Your company has less than 10 employees; it is a service company, I understand, not manufacturing. So you will be governed by the local shop and establishment act. You need to read the relevant act and rules to see whether there are rules on termination.

It being a small company, gratuity, PF, and ESIC do not apply. Neither do the standing orders. So you are not likely to get relief in those.

You need to see what your appointment letter says. The notice period stated in it will apply. If there is no such term or if you didn't get an appointment letter, then see the shop and establishment act. Generally, you will be entitled to 30 days' notice pay. For that, you can approach the local labor officer for help.

I don't think the Industrial Dispute Act will help either as your company is so small that most restrictions under that law do not apply. In any case, you do not have the resources to fight this in court.

I would suggest that you approach the management for a settlement. Tell them that you would like a clean relieving letter instead of a termination letter and a notice pay of one month; otherwise, you will be forced to go to the labor officer, which will be a problem for them. You can offer to resign if they are willing to give you that letter.

Please start searching for a job and put this matter behind you.

Furthermore, I do not think a company will just terminate a 7-year-old employee just like that. There must be a side of the story which we do not know. You should consider approaching the company with an apology and request to take you back.

Of course, if you feel you are entitled to other relief, then you must consult a labor lawyer and take up the matter. With limited information, no one here can give you a proper and informed suggestion beyond the generality.

Regards

If you were working not in a supervisory capacity but performing technical work at the ground level, then you are covered under the definition of a workman. A software engineer at the ground level is considered a workman. Since termination was carried out based on misconduct allegations without conducting a domestic inquiry, the termination is illegal and should be challenged before the labor court. Even if there were 8-9 persons involved, it still qualifies as an industry.

Thanks,
Sushil

As mentioned by Mr. Banerjee, a company cannot terminate an employee for petty issues. If it had to be done, the company would have acted long before your confirmation. There is another side to the story which is not known by the members. As advised by Mr. Banerjee, try to negotiate and resolve this problem amicably for a clean exit.

Dear Seniors,

I agree with all of you that there must be another side to the story, but the story does not involve me misbehaving with anyone. Over my 7 years in this company, I have been close to everyone, treating them like family members. Therefore, I approached my director (who is also an employee but the director of the Indian branch) to express my desire for more exposure and to explore international opportunities. I also suggested that they start looking for my replacement.

As you are aware, finding a job abroad is not easy. I searched for almost a year but did not find anything suitable. During this time, the director began having issues with other team members. As the second-highest-ranking member out of 7-8 people, the team approached me to help improve the work environment. This is where the main story unfolds. Acting on behalf of my team members, I wrote an email to the company owner in Australia, expressing the team's unhappiness and requesting intervention. In response, the Australian team conducted a survey, speaking to each team member individually. Meanwhile, the director became aware of these actions, and through unknown means, I was terminated. I also received a message from an Australian team member apologizing for the top management's decision.

I want to assure you that I have not engaged in any misconduct and feel like a victim of office politics. I seek your advice on how to pursue any claims I may have.

For your information, I am currently working in Panchkula for nearly half of my previous salary.

Thank you,

Sumit Arora

Irrespective of your designation, whether you were performing duties of a technical nature and whether at ground level, what powers were conferred upon you? This is to determine whether you were covered under the definition of a workman under the ID Act. Did you supervise any individuals? Additionally, where was your place of work?

Thanks,
Sushil

Termination Due to Misconduct

Firstly, as mentioned earlier, the reason for termination was due to misconduct, which could only have been issued after conducting a domestic inquiry. The termination order may be set aside by a judicial forum.

Legal Remedies and Applicable Laws

Regarding the remedy, since your office was in NOIDA, you are governed by the UP Shops and Establishment Act. Under Section 19 of the Act, along with the rules framed thereunder, the domestic inquiry should have been conducted.

Determining Coverage Under the Industrial Disputes Act

Since you did not provide details about the powers conferred upon you, such as leave sanctioning, supervisory functions, the main nature of duties, or the power to take disciplinary action against subordinates, it cannot be determined if you were covered by the Industrial Disputes Act. It is advisable to discuss these matters with your lawyer and take appropriate action.

Thanks,

Sushil

Based on the quote, it appears that you were transparent in informing the Director about finding a replacement, indicating a loss of loyalty to the company. Emotional attachment to the people rather than the company is highlighted. Additionally, you filed a complaint against your seniors to the Group Director, suggesting a lack of trust in your superiors, which may be considered misconduct rather than professionalism.

The Australian counterpart conducted a survey or internal inquiry, leading to the termination of your employment. If you disagree with this decision, seek legal advice and consider contesting the termination. Remember, your company is a multinational corporation with legal advisors. Legal proceedings can be lengthy, so proceed with caution.

You don't tell your boss to find your replacement until you have a better job offer in hand. And you definitely don't complain to the "owners" behind the country head's back.

Obviously, the owners trust the country head, and obviously, you came across as someone who is not committed to the company and doesn't work well in the team. If the internal survey/enquiry supported this view, your fate was already sealed.

Best strategy - find a new job and never repeat this.