Unexpected Job Termination: How Can I Ensure My Employer Honors My Contract?

Hi Kabir, I was working as a General Manager for a reputed automobile dealer in Bangalore. I joined on 22nd March 2016. However, on 12th April 2017, the MD of the company asked me to leave without providing any specific reason. The only words spoken were, "we will have to let you go." I was then instructed not to report to the office, take April's salary, and leave.

Over the past year, the performance of the outlets I managed has been fairly good, with no concerns raised regarding performance or behavior.

I was only offered payment for April and my leave encashment, which does not even amount to 30% of what I am owed. There is a variable pay component, of which only a small portion has been paid over the last three quarters. The balance was promised at the end of the financial year, along with a retention pay of one month after completing a full year. All these amounts were specified in the offer letter, along with fixed amounts. However, the company has failed to issue an appointment letter.

Now, the HR department does not want to pay the variable component and retention pay, nor are they offering any severance package. Throughout my tenure, all targets were achieved, and there were no performance issues. The company never communicated any concerns regarding my performance, nor did I have any meetings discussing performance.

I would like to understand what my legal options are. I am not seeking reemployment; I only seek for the company to honor what is stated in writing and provide a fair severance package. I held a significant role in a company with over 2000 employees.

Thank you, Kabir [Phone Number Removed For Privacy-Reasons]

Legal Options for Challenging Termination

1. You may challenge the termination, which is, in fact, illegal, and seek reinstatement. However, since you have stated that you do not want to rejoin the company, let's eliminate this option.

Settling the Issue with Payments

2. You are ready to settle the issue with payments. It is advisable to consult a lawyer with all relevant documents (appointment/offer letters and any other documents showing entitlement to money) and then calculate all the dues and outstanding amounts. Once the proper calculation is done, you may send a notice/legal notice to the company demanding the same. If the company does not pay within a stipulated time, then you may consider taking legal action. You may calculate the dues yourself and send a notice.

I believe if you propose accepting your resignation to the company without any dispute, the company may be reluctant to clear your dues.

Please clarify your statement, "But the Company has failed to issue an Appointment Letter," based on available documents. You can initiate a civil suit for the recovery of the amounts due to you, including questioning the illegal termination of service in violation of the termination clause. In the absence of documents, it cannot be presumed that the company is withholding amounts due to you.