How Should I Handle a Job Termination Due to a Resolved Personal Dispute with a Bank Client?

Dear team, I was working with a private bank, but due to some issues, they issued a termination letter to me. Please find the instance.

Background of the Issue

I had borrowed money from a friend with the condition of repayment within 3 years. Now, after 2 years have passed, a dispute arose between my friend and me. My friend also holds an account with the same bank where I am employed. They lodged a complaint with the bank, stating that they had made payments in relation to the bank and for fixed deposit purposes. However, after resolving the dispute with my friend, they withdrew their complaint, acknowledging that it was unfounded and not related to the bank. Despite this, the bank proceeded with issuing the termination letter, citing the initial complaint as the reason.

My Response to the Bank

I explained to the bank that the customer had confirmed in writing that the issue was resolved and was a personal matter unrelated to the bank. However, the bank remains adamant and has terminated my employment. I have been with the bank for 3 years and have a total of 10 years of banking experience.

Request for Advice

Please advise me on what steps I can take in this situation.

Dear Tinumal,

Before your termination, did your bank conduct any inquiry? Was it proven in the inquiry that you violated any rules or regulations of the bank? Was the violation so severe that it warranted termination?

If the inquiry was not conducted, then your termination may be illegal. You can visit the labor office in your area and file a complaint. Let's see what happens.

Thanks,
Dinesh Divekar

In this case, the customer has only lodged a complaint and then retracted it. There is no proof available to support this. The bank has taken action based solely on the customer's written complaint. Both the customer and the bank lack any evidence besides the customer's written complaint.

Kindly guide.

Hope you are a permanent employee in the bank. Termination of a permanent employee without any misconduct/disciplinary proceedings is illegal, and you can challenge the decision of the bank's management in any court of law.

Employment Capacity and Legal Implications

The poster has not mentioned in what capacity he was employed—whether in the cadre of workman like clerk, cashier, etc., or in supervisory/managerial roles like officer, assistant manager, manager, etc.

In any case, if the information given in the post is correct, the action of the Bank Management resorting to summary dismissal of an employee based on a complaint that was later withdrawn is totally illegal. Most probably, the Bank would have relied on some clause in the appointment orders providing for summary dismissal on the grounds of personal financial transactions with customers. Even then, under the narrated circumstances, the punishment of dismissal without following the principles of natural justice will not withstand Judicial Scrutiny.

Legal Recourse for Workmen

Therefore, if the poster is a "workman" under the ID Act, 1947, he can raise a dispute under Section 2-A(1) against the Bank, claiming reinstatement with back wages, continuity of service, and all attendant benefits before the Labor Officer for the area where he worked last.

Legal Recourse for Non-Workmen

In any other case, he can file a Civil Suit claiming damages for breach of the contract of employment by means of wrongful termination.

It would be better for him to consult the Bank Employees' Association or a Civil Lawyer.

Dear Tinumal,

As stated by all colleagues, if you fall under the category of workmen as an employee of a Private Bank, the Appropriate Government is the Central Government. Therefore, you have to raise the dispute with the Labour Commissioner (Central) of your jurisdiction, obtain a failure report, and upon receiving the reference, you have to move to the Central Government Industrial Tribunal as mentioned in the reference issued by the Central Government.

Regards,