Terminated Without Cause: How Can I Navigate Legal Action and Protect My Future?

Termination Without Cause: Seeking Guidance

May I please request you to guide me through some basic information as I was terminated by my employer, who handed over a letter stating that "your employment contract has been terminated with immediate effect - Termination without Cause as per section 4 C of your employment contract."

Background of Employment

I have been working with the company for 22 months, and everything was fine for the last 18 months. My job was confirmed within 3 months as per the company's policy. I received a rating of 3, indicating 100% satisfactory work, and I was given a 10% salary hike.

Issues with Management

However, in August 2016, during my mid-year review, my manager suddenly put me "Offtrack," stating that my performance was not good. I disagreed, leading to an argument. Subsequently, my senior manager also confronted me, which resulted in me leaving the meeting room without a word. Since then, my senior manager began harassing me, giving me new challenges and scrutinizing my work for flaws.

Despite my best efforts, they kept finding faults in my work to harm me. I reported this harassment to my HR manager, but no action was taken. The harassment continued for three months, leading to me being put on a Performance Improvement Plan (PIP). My HR manager forced me to sign the PIP form, stating that refusal to sign would still result in being placed on the PIP. Following this, both my manager and senior manager intensified the harassment by sending fake emails to HR, creating unwarranted situations to undermine me, and isolating me from my team members.

Legal Action and Termination

On November 17, 2016, I was terminated from my job after sending a legal notice to the company through my lawyer. Is it possible that taking legal action led to my termination upon receipt of the legal notice?

I repeatedly requested assistance from HR, but no help was provided. I even faced difficulties from my director, who claimed inability to intervene due to not being in India. With no support, I resorted to legal help. The past few months have been challenging, resulting in depression and physical health deterioration.

Seeking Legal Guidance

Now, I seek guidance on where to lodge my case, specifically in the Labor Court (as my company is in Gurgaon, Haryana). I held a position as a "Specialist," with an approximate monthly salary of 70,000. I did not manage a team or conduct performance appraisals. Do I fall under the category of "Workman" as per labor law?

Can I represent my case independently before the labor court? What are the fees of a labor lawyer if I opt for legal representation?

Procedure and Documentation

What is the procedure for filing a case, and how long does it typically take to reach a resolution? Which documents should I include with my case file to substantiate the harassment and subsequent termination upon raising my concerns?

Court Proceedings

Will there be a hearing involving both parties (Complainant and opponent) in court? Will my ex-employer bring my manager and senior manager to the court, or will they be represented by legal counsel?

Future Employment Concerns

Will my company provide me with a Relieving/Experience letter to facilitate future employment opportunities? Do they have the right to disclose that I was terminated, potentially affecting my background check and future job prospects?

I would highly appreciate your expert advice on the above points. A quick response would be immensely valuable to me during this challenging time.

Regards,
Atul

While sincerely sharing your agony over the unceremonious termination of your job, I would like to ask you to engage in some self-introspection regarding the entire episode. In a span of 22 months of service, how did your relationship with your manager suddenly deteriorate in the last three months? Your account of the mid-year review incident indicates that you may be overly sensitive to criticism, leading to conflicts and earning the disapproval of your Senior Manager. Efficiency is a relative concept. When you perceive your efficiency as absolute, it can result in insubordination and ultimately incompetence. A superior cannot expect quality work from an incompetent subordinate. The significance of academic qualifications in employment is akin to that of a passport. However, your mental maturity and emotional intelligence act as the visa for sustaining success in the workplace. A superior may have fewer academic qualifications than their subordinates, but this does not invalidate their guidance and feedback. It is essential to remember that in any employment scenario, the superior holds the power to shape the career trajectory of their subordinates.

Regarding Your Queries

If your employment contract indeed includes a clause allowing termination without cause, it may be against Public Policy.

Based on the job profile you have described, it appears that you qualify as a "workman" under sec. 2(s) of the Industrial Disputes Act, 1947, and as a "person employed" as per the applicable State Shops and Establishments Act if you work in an IT or ITES Company.

You have two options:

(a) Initiate a dispute against your termination as unlawful under sec. 2 A (1) of the ID Act, 1947, before the Conciliation Officer for the area, seeking reinstatement, back wages, and continuity of service, or

(b) Appeal the termination decision before the Appellate Authority designated under the State Shops and Establishments Act. In option (a), the conciliation officer will attempt to facilitate a mutually acceptable settlement, and if unsuccessful, will issue a conciliation failure report within 45 days, after which you can approach the Labour Court. In option (b), the Appellate Authority will conduct an inquiry to determine the legality of the termination.

In both redressal methods, you will need to submit relevant documents related to your employment, such as appointment letters, confirmation records, pay-slips, and termination orders, at the appropriate stages of the proceedings.

Regards,
[Username]

Thank you so much for your time, dedication, and honest, unbiased expert advice on my query. I truly appreciate how you have simplified the options for me. I agree that a manager plays a crucial role in shaping our career within an organization. However, there are instances when, despite your good terms, dedication, and sincerity towards work, your manager may challenge you to prove you wrong, leading to failure and eventual dismissal under the pretext of "Performance." This unfortunate situation has occurred to me as well.

Guidance on Reinstatement and Legal Options

I kindly request your guidance on the following points:

1) Regarding option (A) - Reinstatement of job and back wages:
- Do I need to write a letter to the labor commissioner if I choose this option?
- If I win the case but do not wish to return to the same company, what alternatives do I have?
- Can I request a specific amount for mental anguish/depression and family disruption? If so, how should this amount be calculated?

2) Regarding option (B) - Appeal before the Appellate under Shop Establishment Act:
- If successful in proving the termination was unlawful, what are the potential outcomes?
- Is job reinstatement the only possibility, or can I seek a predetermined compensation?

Clarification on Employment Documents and Legal Rights

Furthermore, I seek clarification on the following matters:

1) I have requested my HR for my relieving and experience letters to facilitate my job search due to the increasing depth of my depression from prolonged unemployment.

2) The HR stated they cannot release the documents until I submit a written resignation, citing the legal notice sent by me and their legal team's involvement.

3) They also demand a written undertaking to not pursue legal action for document issuance, hinting at potential repercussions if the matter continues.

4) Is it legally acceptable for a company to withhold relieving letters upon termination?

5) Threats of disclosing termination to future employers have been made if I do not comply with their terms.

6) I am torn between complying and safeguarding my rights. Can I later challenge any coerced agreements?

7) In the case of unjust termination, am I entitled to full salary and notice period benefits?

Your expert advice on these matters would be greatly appreciated. A prompt response is sought as a meeting with my company is scheduled for this evening at 5 PM.

Thank you sincerely.

Regards,
Atul Joshi

Legal Notice and Case Lodging

Prima facie, the material you have will work in your favor. However, can you provide the details of the legal notice you sent? Please also follow the suggestion made by Mr. Umakanthan above.

Lodging Your Case

Regarding your queries, the answers follow: Now, my concern is where can I lodge my case? Is it in the Labor Court? (My company is in Gurgaon, Haryana). If you are a workman, you will come under the purview of the labor court.

Workman Classification

I was designated as a "Specialist" with a salary of approximately 70,000.00 PM, and I was not handling any team nor in a managerial position for performance appraisal. Do I come under "Workman" per labor law? From your description, yes.

Self-Representation and Legal Fees

Can I represent my case on my own before the labor court? What is the fee of a labor lawyer if I go for a lawyer to file my case? Yes, you can appear in person. Fees of lawyers vary from lawyer to lawyer and place to place. It is better to get the details from the lawyers where you want to file. However, you can get the complaint drafted by the lawyer from anywhere and file the same yourself. It can save you some money.

Procedure and Timeline for Case Resolution

What is the procedure for filing a case, and how long does it take to get settled? You have to file the first complaint before the labor commissioner. After some time, if conciliation fails, you have to file the case in court. There is no timeframe for settling the case as it depends on the case and its complexity.

Required Documentation

What documents must I attach with my case file to substantiate that I was harassed and then terminated when I raised my voice? You can only provide the documents to show that you were being harassed. Apart from that, you need documents to show your date of appointment, last drawn wages, and termination.

Court Hearings

Will there be a hearing from both parties (Complainant & opponent) in court? Will my ex-employer send my manager & senior manager to the court for a hearing, or will their legal representative speak on their behalf? Equal opportunities will be given to both parties, and the court will hear both before giving judgment. Whether the company will send their manager/senior manager is entirely up to the company over which you have no control. But from my experience, their lawyers would represent them in court.

Relieving/Experience Letter and Background Check

Will my company provide me with my relieving/experience letter so that I can join another company? It depends on them. Do they have the right to get my background check failed, stating that I was terminated from my ex-employer? Or can they not reveal the truth as it will impact both my personal and financial life since without a job, I will not be able to support my family, meet daily expenses, contingencies, and survive longer? You do not have the right to stop them from checking your background. Your personal life and family are immaterial.

I really appreciate you for readily taking my advice in good stead. Forget what has happened so far as a mere nightmare and forge ahead with caution and confidence. I don't know why most HR people employed in high-tech organizations fail to explain the legal consequences of faulty employment decisions by their management at the beginning stage itself. I cannot think it is due to their lack of legal knowledge. On the contrary, they slowly develop the wrong conviction that their role in respect of any condemned employee is limited to that of a hangman only. If such a suggestion comes from your HR now, it implies that the management's action will not withstand judicial scrutiny. Therefore, the decision is yours: you can simply conclude that enough is enough, convert your termination into a resignation with a waiver of the notice period, obtain the formal relieving orders and experience certificate, and move ahead searching for alternative employment, OR fight the case until its logical conclusion. But, you cannot settle the matter now as suggested by your HR only to rake up the issue after some time as you think.

In respect of disputes relating to dismissal, when the Labour Court concludes that the dismissal is illegal, the automatic consequence is reinstatement with back wages, continuity of service, and all other attendant benefits. However, under the special powers vested under Sec. 11-A of the ID Act, 1947, the Court can order any other relief to the workman depending upon the stands of both parties at the final stage.

I think that all other queries have been answered by our learned friend Ritesh very aptly. I wish that good sense may prevail over you!

Regards

Dear Mr. Umakant & Mr. Ritesh, I shall be highly thankful to both of you for giving your valuable time and expert advice. I also appreciate the way both of you have broken down my queries into their simplest form. I have attached my legal notice here as Mr. Ritesh suggested in his post.

I strongly agree with you, and now I shall move forward and do some self-introspection to determine which path I should take: should I resign on my own and approach a new career, or should I fight against the injustice until I get justice?

I shall once again thank both of you for your help till now.

With due respect and regards,
Atul Joshi