Wrongful Termination and Withheld Salary: What Are My Rights and Next Steps?

Dear Senior Members,

I have recently been terminated on grounds which are absolutely false. During the lockdown period, my salary for the month of April 2020 was held back, while all other employees received their salary. Upon writing to HR regarding my salary, one fine morning, I received an email stating that "trust and faith in you was used by you personally against the interests of the company. You are now under investigation." When I replied stating that this is not true, I received my termination email stating, "This employment termination letter is to inform you that your employment with XYZ Pvt Ltd will end as of May XX, 2020. You are requested to return any company property, documents if any, and IT spares in your possession within seventy-two hours from the receipt of this mail." I was not issued any notice for an inquiry, nor was I presented with any show-cause letter, and I was not given the opportunity to explain myself. When I demanded my withheld salary along with one month of gross salary (I was in the probation period), as per my appointment letter, I was issued another email stating that the salary will be in abeyance until the investigation over the malafide act is completed.

My questions are:

a) No inquiry committee was set up, no show-cause letter was issued, no chance was given to explain, and the termination letter does not indicate anything against me. Can they hold back my salary?

b) Since my status is 'terminated,' can they still continue with any kind of departmental investigation and falsely charge me?

c) My family is under shock and trauma; do I have any legal remedies?

Please help me by providing your advice and answers to my queries.

Regards

Termination of a senior managerial personnel

Termination of a senior managerial personnel would be easier for a company than the termination of a workman, as defined in the Industrial Disputes Act. Since you are on a probation period, the company need not give any notice period for termination. Generally speaking, the company can terminate the services of a probationer immediately. Whether any inquiry needs to be conducted or not is purely a call for management. It is suggested that you may personally discuss the matter with your reporting officer, in the presence of HR.

I would like to respond pointwise to your queries as follows:

Entitlement to Salary and Notice Period

a. As a senior management personnel, you are governed by the conditions mentioned in the appointment order. Accordingly, you are entitled to the salary for the past month and the notice period. The issue of charges, formal inquiry, and opportunity to defend yourself are all the rights of workmen which are unavailable to you. Withholding of salary pending investigation is not illegal, although it cannot be for an indefinite period.

Investigation Process

b. Yes, the investigation can be held, although it would be ex-parte and your part of the story would not be considered. So you can put up your defense and mail it to all concerned.

Legal Remedies for Breach of Contract

c. There is a civil remedy available to you for breach of contract. You can get compensation for wrongful termination. But the process is long and cumbersome.

Hope the above clarifies.

In my understanding, the action of the employer is flawed. True, the service could be terminated at any time during the probation period without assigning any reason; there is no due process to be followed. However, the situation is quite different when wrongdoing is alleged. If so, there needs to be a proceeding and inquiry strictly in accordance with the principles of natural justice.

Moreover, the employer has no right or authority once the employee has been terminated and the contract of employment has ceased to exist. Thus, the querist certainly has a cause for action.

Dear @KK!HR Sir,

Can they still conduct an investigation after they have terminated me? The very act of termination is stated to put an end to the employer-employee relationship, pursuant to which the employer loses all jurisdiction over the employee.

I would appreciate your and other respected members' comments on this point.

Regards.

Yes, they can still hold an enquiry without your presence; it will remain an ex-parte enquiry. It will be basically to collect more information and assess the culpability for the alleged offenses. As you have not participated in it, its findings cannot be binding on you. But the right of the management to hold an enquiry cannot be questioned.

Dear @KK!HR Sir,

After issuing a termination letter, can they still force me to participate in the investigation/enquiry?

Regards

In my view:

The termination seems to be bad in law; the investigation after termination seems to be bad in law in respect of employees, whether they are in managerial cadre or non-managerial cadre. It is wrong to say that the principle of natural justice is available only to non-managerial cadre.

It is advised that the employee should consult a good advocate. However, the employee has to pass through a lot of pain - mentally, financially, and physically - to get justice.

Dear Akhil Bharatiya Sir,

Thank you so much for your encouraging reply. In these difficult days of COVID-19 and economic downfall, anyone can understand the kind of mental trauma my family is going through, let alone the financial impact of being unlawfully terminated without any valid reasons.

Sir, could you recommend a good legal professional who can help us seek justice? We are from Kolkata. I also reach out to others from Kolkata who can assist me.

I appreciate any guidance you can provide.

Thank you.

Warm regards