Maximum possible compensation for wrongful termination


A private sector employee in a large manufacturing organization drawing 3 lacs pm has been wrongly terminated without reasonable ground although the terms and conditions of the appointment letter says 'contract can be terminated with 3 months notice on either side without reason'. The employee is 45 years old and the normal age of retirement in the organization is 60 years. Can the employee go legal and ask for reinstatement. If reinstatement is not possible; what is the maximum compensation one can claim in terms of number of months of salary.


Answers (2)

You have the following options:
1. Usually, employees would be terminated based on misconduct, disobedience, fraud, misappropriation and breach of contract etc., but in your case, you got the termination based 'without reason' is totally illegal method adopted by the employer side.

2. Before termination of any employees the employer must give an opportunity to the employee under the right to a fair hearing (audi alteram partem, or "hear the other side" Rule) based on the principle of Natural Justice which is confirmed and guaranteed under the Law. In case, notwithstanding your performance is not up to their mark itself that they have to give one more opportunity to you to correct the same and your reporting manager also liable to for non performance under vicarious liability and he has bounden duty to tinker the same by delivering suggestions.

3. In any company, there are ample procedures during the conduct of yearly, half yearly and quarterly appraisal and it must be followed by the company according to its rules and regulation which is already prescribed under the established policy. Once your reporting manager sends the appraisal report after the hearing from your side that the review officer or manager shall analyse the same and consider the reporting manager's rating and clinch the same by modifying it, subject to additional analysis.

4. As you said, there was no any opportunity conferred to you to defend and reply against their allegation. So it is completely against the principles of natural justice. Therefore, you can challenge the termination order and claim the compensation and damages for mental agony and illegal termination. You have all the rights and better issue a legal notice to the employer i.e, Reporting Manager, HR Department and Review officer. Subsequently, if no use or reply from the employer, you can approach the Court of Law.

5. You can file a Petition in the court of Law and seek appropriate remedy. You can seek reinstatement as well compensation for the loss suffered by you.


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Dear Client,

The management of the organisation should show cause the employee before terminating his services.

You may sue the organisation for the same and seek either re-instatement and/or proper compensation as per policy of the company on the grounds of natural justice.

Please discuss with details of the matter for further advise.

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