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Termination of Service without reason what can I do
15-Jul-2023 (In Labour & Service Law)
Dear Sir, I was terminated from my permanent service with my employer without providing any reason for the same & was paid 3 month of notice. I was terminated using clause B of appointment letter. There are 2 clauses in appointment letter Clause A is used when employee indulge in fraud, cheat, malpractice, dishonesty etc and Clause B is can be used by either party by giving 3 month of notice. In my case Clause B was used & i was terminated from services without providing any reason and only clause B reference was used. My settlement is done but relieving letter is not issued.
Your employment with a private company is governed by the letter of appointment issued to your by the company and comes under the ambit of Contract Act. We would like to know few more things before we can advise you:
If you signed any contract of employment before joining the company?
If so, what were the terms of termination of employment in the contract?
If there is no provision stating clearly that your employment can be terminated at any time without issuing any notice then of course you can take legal recourse. The first step of which will be to send the company a legal notice.
We would like to know your monthly salary and the designation of your job so that we can clearly determine if you are protected by Industrial Disputes Act or not.
Secondly, as far as the Industrial Dispute Act is concerned, we would like to know-
1. If the company is an industry under section 2(gg) (j) of the Industrial Disputes Act?
Industry means any systematic activity carried on by co-operation between an employer and his workmen (whether such workmen are employed by such employer directly or by or through any agency, including a contractor) for the production, supply or distribution of goods or services with a view to satisfy human wants or wishes (not being wants or wishes which are merely spiritual or religious in nature), whether or not,
(I) any capital has been invested for the purpose of carrying on such activity; or
(ii) such activity is carried on with a motive to make any gain or profit, and includes :
(a) any activity of the Dock Labor Board established under section 5A of the Dock Workers (Regulation of Employment) Act, 1948
(b) any activity relating to the promotion of sales or business or both carried on by an establishment.
But does not include
(1) any agricultural operation except where such agricultural operation is carried on in an integrated manner with any other activity and such other activity is the predominant one.
2. If you are a workman under section 2(s) of the Industrial Disputes Act?
Workman means any person (including an apprentice) employed in any industry to do any manual, unskilled, skilled, technical, operational, clerical or supervisory work for hire or reward, whether the terms of employment be express or implied, and for the purposes of any proceeding under this Act in relation to an industrial dispute, includes any such person who has been dismissed, discharged or retrenched in connection with, or as a consequence of, that dispute, or whose dismissal, discharge or retrenchment has led to that dispute, but does not include any such person :
(I) who is subject to the Air Force Act, 1950, or the Army Act, 1950, or the Navy Act, 1957; or
(ii) who is employed in the police service or as an officer or other employee of a prison; or
(iii) who is employed mainly in a managerial or administrative capacity; or
(iv) who, being employed in a supervisory capacity, draws wages exceeding one thousand six hundred rupees per menses or exercises, either by the nature of the duties attached to the office or by reason of the powers vested in him, functions mainly of a managerial nature.
If you signed any contract of employment before joining the company?
If so, what were the terms of termination of employment in the contract?
If there is no provision stating clearly that your employment can be terminated at any time without issuing any notice then of course you can take legal recourse. The first step of which will be to send the company a legal notice.
We would like to know your monthly salary and the designation of your job so that we can clearly determine if you are protected by Industrial Disputes Act or not.
Secondly, as far as the Industrial Dispute Act is concerned, we would like to know-
1. If the company is an industry under section 2(gg) (j) of the Industrial Disputes Act?
Industry means any systematic activity carried on by co-operation between an employer and his workmen (whether such workmen are employed by such employer directly or by or through any agency, including a contractor) for the production, supply or distribution of goods or services with a view to satisfy human wants or wishes (not being wants or wishes which are merely spiritual or religious in nature), whether or not,
(I) any capital has been invested for the purpose of carrying on such activity; or
(ii) such activity is carried on with a motive to make any gain or profit, and includes :
(a) any activity of the Dock Labor Board established under section 5A of the Dock Workers (Regulation of Employment) Act, 1948
(b) any activity relating to the promotion of sales or business or both carried on by an establishment.
But does not include
(1) any agricultural operation except where such agricultural operation is carried on in an integrated manner with any other activity and such other activity is the predominant one.
2. If you are a workman under section 2(s) of the Industrial Disputes Act?
Workman means any person (including an apprentice) employed in any industry to do any manual, unskilled, skilled, technical, operational, clerical or supervisory work for hire or reward, whether the terms of employment be express or implied, and for the purposes of any proceeding under this Act in relation to an industrial dispute, includes any such person who has been dismissed, discharged or retrenched in connection with, or as a consequence of, that dispute, or whose dismissal, discharge or retrenchment has led to that dispute, but does not include any such person :
(I) who is subject to the Air Force Act, 1950, or the Army Act, 1950, or the Navy Act, 1957; or
(ii) who is employed in the police service or as an officer or other employee of a prison; or
(iii) who is employed mainly in a managerial or administrative capacity; or
(iv) who, being employed in a supervisory capacity, draws wages exceeding one thousand six hundred rupees per menses or exercises, either by the nature of the duties attached to the office or by reason of the powers vested in him, functions mainly of a managerial nature.
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Adv. Siddhant Sharma
Delhi | 200+ Answers
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