Facing Unjust Termination: Should I Return Company Assets Without Salary Settlement?

Hi, I am working in an MNC in Pune. One fine day, the company's director called me and told me that my project had ended, and now there wasn't much work for me. So, I had to resign within 15 days or so. I refused to resign. The next day, the company's HR came to me, asked me to resign, and threatened me with termination the following day if I did not comply. I still refused to resign without any reason. After a week, they claimed poor performance as the reason. I presented them with numerous appreciation emails and asked where they observed poor performance.

After three days of no response to my email, they revoked my office access, sent me a termination email and a release letter to my personal email, and requested the return of my office belongings, including the company laptop. In my reply, I requested the restoration of my office access and the release of my salary. However, in the subsequent email, they reiterated the demand for the return of office belongings, and I, again, requested the salary release.

Now, I have learned that despite their promise to pay the salary, they did not release it after taking back the belongings of those who were forcefully terminated earlier. Unsatisfied with the illegal termination without cause, I am contemplating approaching the labor court.

Questions Regarding Termination and Asset Return

1) Post receiving the termination mail and the relieving letter without surrendering the laptop, should I return the company laptop upon their request or await a legal notice without receiving clearance of my salary and full and final settlement? Or should I wait for the labor court's decision?

2) If I do not return the laptop, and the company takes legal action in the meantime, how should I defend myself?

3) After receiving the relieving letter, is the employee responsible for returning any company assets?

4) What is the difference between a Termination letter and a Relieving letter?

Thank you,

Regards, Sarika

Response to Termination Queries

1. The circumstances surrounding your termination, as you described, appear improper and illegal. Currently, you have no right to retain possession of the laptop and other company belongings. However, given the company's past history, which does not inspire confidence that you will be paid your salary and other benefits, you can respond by clearly indicating your willingness to return all company items. Simultaneously, request payment of your estimated dues. You can also mention the possibility of approaching labor authorities in case of non-payment.

2. By indicating your willingness to return all the items, you stand a better chance to defend yourself.

3. Yes, the company has a lien (legal right) on the items entrusted to you for office use. Once the office use is over, you are required to return them. Perhaps, when these items were issued to you, you signed an undertaking to return them on demand.

4. The termination letter indicates the fact of being terminated from service. After being relieved from service, the employer-employee relationship comes to an end.

Dear Madam, the company's management has adopted arm-twisting tactics in terminating your services, which, on the face of it, are unjustified and illegal. You have every right to knock on the doors of the labor court and seek justice.

It appears that you are in possession of the company's laptop. You may keep it with you, but consider writing a letter, as suggested, to the top authority clearly expressing your intention to return it, provided the company is willing to settle all your legal dues and provide suitable compensation for the illegal termination. Give them a deadline of seven days to reply and threaten them with legal action if there is no response.

Please wait for the company's response, and upon receiving it or if there is no response, revert for further advice.

Regards, Vinayak Nagarkar HR and Employee Relations Consultant

Employment Capacity and Legal Implications

The post is silent about the capacity of the employment of the employee, i.e., whether a workman falling under Section 2(k) of the IDA, 1947, or outside it, i.e., supervisory, administrative, or managerial cadre. Disclosure of the cadre of one's job is a vital factor for deciding the forum for redressal of any employment grievance, including illegal termination.

Again, there is no mention in the post about the exit clause pertaining to unilateral termination of the contract of employment by either party.

Keeping these initial observations for the feedback of the poster, let me try to answer the queries to the best of my knowledge as follows:

1) An act of illegality by the employer cannot be justifiably countered by the affected employee through another illegal act. Any property of the employer entrusted to the employee for employment purposes cannot be held by the employee as collateral against any dues owed to him/her just because he/she is relieved from the job. Full and final settlement is a mutual process that would occur only after termination, which is unilaterally effected by the employer in this case.

2) Compliance with the suggestions of the above-mentioned learned members can resolve the deadlock and deter the ex-employer from initiating any legal action for the recovery of the property.

3) The answer to this query is included in the first answer itself. The issuance of a relieving order cannot extinguish the right of the ex-employer to demand back his property nor create any entitlement for the ex-employee to own it.

If the employer fails to settle the legal dues, the poster can raise an industrial dispute under Section 2-A(1) of the IDA, 1947, before the Conciliation Officer for the area if he/she is categorized as a 'workman'. In any other case, a Civil Suit claiming damages for the breach of the contract of employment with costs is the available option.