Abrupt Termination During Probation: What Legal Steps Can This Manager Take?

Respected Learned Members,

An employee in the capacity of Manager works in a factory and is nearing completion of his probation in a month. His performance, as assigned to him, has been satisfactory. He has undertaken and accomplished many tasks that were earlier neglected or couldn't be completed by his predecessors. The chairman of the company likes him and even invites him for breakfast together at the hotel during his factory visits. This situation doesn't sit well with a senior and old official, perhaps due to jealousy, feelings of insecurity, and over a petty issue for which that employee is not solely responsible. The old senior employee makes a significant fuss and pressures the chairman to terminate the manager. The chairman attempts to defend the new employee, but the old employee threatens that if the manager is not terminated, he himself will step down. The old senior employee holds some influence in marketing. Consequently, the chairman reluctantly terminates the manager abruptly without following the established due procedures, such as conducting an inquiry by the Grievance Redressal committee or issuing any memo/letter providing an opportunity for the manager to present his side, and no performance evaluation is conducted before initiating the termination.

Although the company has more than 200 employees and workers, there is no committee to address employee grievances. According to the Standing Orders Act, it's mandatory to have a certified Standing Order from the factory department. In this case, there is no certified Standing Order. Assuming that the concerned employee may not fall under the Industrial Disputes Act, 1947, what legal remedies are available for the aggrieved employee against such forceful, illegal, arbitrary termination? The termination clause in the appointment letter specifies a one-month notice during probation and a two-month notice after confirmation.

Can the company terminate the employee in this manner? What legal remedies and compensation can the employee seek for job loss, damage to reputation, and mental distress due to the termination? What rights does the employee have in this scenario? Please share your valued insights.

Regards,

If an employee believes they have been terminated unfairly or without following due procedure, they may have certain legal remedies available to them. It's important to consult with a legal professional who specializes in labor and employment law in your jurisdiction to get accurate advice tailored to your specific situation.

Here are some potential aspects to consider:

Breach of Contract

If the termination is in violation of the terms outlined in the employment contract, such as not providing the required notice period, the employee may have a case for breach of contract.

Unlawful Termination

If the termination is in violation of applicable labor laws or regulations, it may be considered unlawful termination. In some cases, it might be regarded as "constructive dismissal," where the employee is forced to resign due to unbearable working conditions.

Procedural Fairness

Employers typically need to follow established procedures before terminating an employee. If the termination was abrupt and lacked proper notice, consultation, or an opportunity for the employee to explain their side, it could be challenged on grounds of procedural unfairness.

Grievance Redressal

Even though your company doesn't have a Grievance Redressal Committee in place, it's still important to ensure a fair process for addressing employee concerns and grievances. Not providing an opportunity for the employee to be heard might be considered a violation of their rights.

Defamation or Reputation Damage

If the manner of termination negatively impacts the employee's reputation or employability, they might consider legal action for defamation or damage to reputation.

Mental Agony and Compensation

If the employee suffers mental distress due to an unjust termination, they may seek compensation for the mental agony caused by the termination.

Legal Proceedings

The aggrieved employee may choose to file a legal claim against the company for wrongful termination or breach of contract. They can approach labor courts, employment tribunals, or other relevant authorities depending on the laws of your jurisdiction.

It's important to note that labor laws vary by jurisdiction, and the specific circumstances of the case can influence the legal options available to the employee. If the employee believes they have been unfairly terminated, they should consider consulting an employment lawyer who can provide guidance on the best course of action based on local laws and regulations.