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Regarding Termination formalities in IT Industry at Hyderabad Location


05-Jul-2023 (In Labour & Service Law)
I have been terminated on 30th June on the pretext of no projects in the future. I have been working for this company from past 6 years 7 months and all of sudden they have called me to HR room to terminate me. I have been performing greatly getting grades Meets expectation and Exceeds expectation all these years in this company and they categorically said its not performance issue or code of conduct issue. They said they will give 3 months gross as per the offer letter and I demanded 6 months gross salary. He said he will give 6 months basic salary, which effectively 2.5 months gross. They blackmailing to sign resignation letter for which I said to them i need time to decide on this. There is lot of hiring going on in my company and I am fit for that job, but they terminated me. Is this behavior compliant with Indian Labor law and Industrial disputes act. I am ready to sign resignation if they agree to give 6 months gross. but the mgmt is not offering this. Please help me to decide
Answers (1)

Answer #1
728 votes
If you sue a former employer for wrongful termination, you are asking the jury to award you money, called damages. Monetary damages are usually the only remedy available in a wrongful termination lawsuit. The purpose of monetary damages is to compensate you for what you lost because of the employer's actions. You will have to prove not only that you suffered losses because of the employer's wrongful actions, but also the amount of those losses. 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.
Did you sign any contract of employment before joining the company?
If so, what were the terms of termination of employment in the contract?
Any employment with a private company is managed by the letter of appointment issued by the company and comes under the ambit of the Indian Contract Act.
The legal recourse starts by sending a legal notice to the company for the illegal termination and to recover any dues as per the terms of your employment with the company. In case of no reply to the legal notice one may choose to file a civil suit for recovery of legitimate dues like unpaid salary, salary in lieu of notice period not allowed to serve, PF, gratuity and so on.
However, one must keep in mind that the court cannot grant reinstatement as private employment is covered under the contract act which means the maximum available remedy is only to recover the monetary losses one suffered due to the illegal termination.

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