Wrongful Termination and Withheld Salary: What Legal Remedies Can Help?

A confirmed employee of a private limited company has been terminated without notice, illegally, by citing irrelevant causes, and their last month's salary has also been withheld.

What are the remedies available as per the law?

Dear member, The information provided is inadequate. Please confirm the following:

a) The nature of your company's business and the state where your office is located.

b) Your designation and the length of service in the current company.

c) How many subordinates directly report to you?

d) Was a show-cause notice issued to you before the termination of your employment?

e) Was a domestic inquiry conducted before the termination of your employment?

f) What was the relationship like with your reporting authority? If it was troubled, please specify the reasons.

g) Are there any other reasons that led to the termination of your services?

Once you provide the details, we will be in a position to give you recommendations.

Thanks,

Regards, Dinesh Divekar

Dinesh Divekar ji, thanks for your quick response. The following are the details as required:

Details of the Company and Situation
a) It is a pharmaceutical company located in Hyderabad.
b) Plant head - 3 years.
c) No show-cause notice issued.
d) No enquiry was conducted.
e) It was okay. When the aggrieved asked for an increment in salary, they refused to pay more.
f) It was a silly cause alleged that the aggrieved person recommended/appointed one of his relatives to a post. Later, the appointed person resigned and was relieved within a few days. Moreover, he is not a blood relation of the aggrieved person.

It is a private limited company with about 50 employees. The aggrieved person is the plant head.

Working regards.

Dear member,

Since the terminated employee was the "Plant Head," he was in the supervisory/managerial cadre. Therefore, the provisions of the Industrial Disputes Act, 1947, do not apply to him. These are applicable only to the "workman" category.

Since the terminated employee, i.e., Plant Head, is not a workman, he/she cannot file a complaint with the labor officer. Therefore, the only remedy available is to file a civil suit. Court jurisdiction for a civil suit should be as per the terms of the employment letter.

However, before filing a civil suit, let the Plant Head send an application to the MD of the company. Politely, bring to his/her notice that the termination of employment is not as per the provisions mentioned in the appointment letter. The Plant Head is eligible to get the payment in lieu of the notice period. If it is paid, let him/her close the matter and search for new employment. If it is not paid, then let him/her decide whether to file a lawsuit or not.

Since the Plant Head has served for three years, he/she is not eligible to get gratuity.

By the way, has the company issued assets like a laptop, mobile phone, etc., to the Plant Head? If yes, then has he/she returned the assets?

Thanks,

Dinesh Divekar