Pushpandra 17 November 2017

Interesting termination case of an employee by foreign co.

Hi,

Here I am sharing a very interesting case which is related to me. I am seeking your honest guidance.

I was working in India office of one of the top 3 Chinese Company as an Associate Director. I worked there till 15 months. Initially

I was hired on 3rd party payroll. During my 1st probation period, Company was so happy with my performance that within 2.5 months only they themselves decided to transfer me from 3rd party to Company’s payroll.

They gave one month bonus also just after 4 months job only. Within 6 months from joining date, they gave me ‘Best New Joiner award’ also (out of approx. 130 members) and just before this award, i was sent to China in Jan month to train people there.
Just after total 7 months, they gave me approx. 20% increment and 2 months bonus also. All was going too well. I was being presented like the best example to all employees across all offices in India, China, Indonesia and Russia.

Due to my great performance and problem solving approach (I solved several big issues and saved company from several big problems. That was not my job profile), I was given several big task and new responsibilities were given to me.

But in October month, unexpected thing happened. I was supposed to go for a meeting to decide for next 6 months’ targets for entire team at 6.30pm but just 2 minutes before the meeting, I was asked to meet International HR Head and two other concern persons. When I entered in the room, within 10 seconds of the conversation, I was given a termination letter without any reason.
I requested them to tell me the reason, but they denied telling. International HR Head simply said that it is written in your appointment letter at Point No. 8B that your services can be terminated without any reason and any time.

Two important rules mentioned in appointment letter:-

1. According to rule no. 8B – your appointment can be terminated by the company without any reason, by giving you not less than 1 month prior notice in writing or salary in lieu thereof. For the purpose of this clause salary shall mean basic salary.
2. According to rule no. 8D – The company reserves the right to terminate your employment summarily without any notice period or termination payment if it has reasonable ground to believe that you are guilty of misconduct or negligence or have committed any fundamental breach of contract of caused any loss to the company.
In my termination letter, rule no.8B was mentioned.
Points to be noted:-

1. They have given my salary of October month, with unpaid leaves and probably basis salary of November month as well.

2. I do not care about money. I am worried about my image and respect. I am into my industry for last 18 years and I have goodwill there. In my last two companies (Both are two biggest brands of the industry), my resignation was never accepted due to my great performance and value.

3. Appointment letter was not given at the day of joining. It was given almost after 45 days.

4. When I got a call from local HR person first time about job offer, I asked about such conditions, she denied. Rule No.8B was not mentioned in the appointment given from 3rd party but when I got transferred from 3rd party to company’s direct payroll, and then it was mentioned. 2nd point is that appointment letter from company (Direct Payroll) was given after almost 45 days. Signature was done in back date.

5. I have such a great image there that everybody is shocked and shattered. This incident has given a message to all employees that if it can be done with me, then it can be done with anybody and anytime.

My questions:-

1. Is it ethical termination?

2. Can I sue them for wrongful termination?

3. Can I sue them for defamation because it has damaged my image in the industry? How can someone believe that a best performer was removed with no reason?

4. Well, appointment was signed by me and rules no.8B is mentioned there; still can it be challenged in court successfully?

5. If I send notice to them, can it back fire to me?

6. If company does not disclose such termination clauses in written at the time of offering job, can it be challenged in court because if company discloses such termination rules at the time of job offer, no one would join them. It means company is cheating with employees. Employees have to sign the appointment letter because as they get job offer letter, they resign in their current company and when they join this Chinese company, then company give this appointment letter with termination rule which employees can not reject otherwise they lose both jobs. Due to this, employees’ retention ratio is poor in this company in India office.

Hope for the correct response and guidance

Thanks

Reply Follow

8 Replies

Hemant Chaudhary 17 November 2017

Hi, it requires a detailed discussion over the topic .. However , in short any dispute arsing of illegal termination and disputes between a employer and employee are heard by labour forum ..the labour forum has a jurisdiction to grant compensation in case of illegal act of the companies .. For detiailed guidence over the topic kindly contact in person ph:- 9654062181

(Guest)

Service related documents are a must to be examined in detail to arrive at some conclusive opinion, as language of the language and terms included in those documents is sacrosanct for consideration of any legality or illegality, even that may or may not be justified ethically.

Guru Guide 17 November 2017

Of course, examination of your service documents by any expert may help you.

Kumar Doab (FIN) 17 November 2017

How would you establish that appointment letter was issued 45days after DOJ and signed in back date?

Or you were asked to sign in back date?

Kumar Doab (FIN) 17 November 2017

Or the date printed and you were asked to sign in back date and under duress?

How is it stigmatic?

What exactly do you mean by 3rd party: Group Company or some other Company?

If it is some other company then it cannot be transfer as posted by you; from 3rd party payroll to Direct Payroll.

You can approach Labor Forums if you are;

Covered by the def. of ‘Workman’ as in ID Act

Or ‘Employee’ as in Shops & Estbs Act of the state

Or you have to approach the Civil Courts…………

Since there was NO issue on performance and NO allegation of misconduct the establishment and IT’s so called internal and international HR have made a mention of clause; 8B and are avoiding to not to let it sound stigmatic.

Kumar Doab (FIN) 17 November 2017

There is NO immediate requirement to share your appointment order or termiantion order or service related documents, therefore you must not run to share these with anybody.

There are threads in which posors and impostors have been asking employers in threads initiated by employers or attorney's of employers to transfer all employees ;50-100-150; from one border of Republic of India with Pakistan to another border with China.................

For few rupees the posro and impostor loitering at online portals may compromise your interest.

Kumar Doab (FIN) 17 November 2017

Similar query has been discussed in many threads that you can ‘SEARCH’ in ‘SEARCH’ option on middle of right hand side of this web page in Experts section and in ‘SEARCH’ option on bottom of right hand side of the web page in Form section…………….

You can also ‘SEARCH in other sections e.g; Articles, Judgments, Files………… And download even citations, judgments, procedures etc etc ……… Avoid posting photos/names/email id/phone numbers/addresses etc etc or attaching any document containing photos/names/email id/phone numbers/addresses etc etc and erase photos/names/email id/phone numbers/addresses etc etc while sending any documents to anyone, anywhere except your own very able senior LOCAL counsel of unshakable repute and integrity specializing in Labor/service matters and having successful track record in handling such matters thru courts of law and with concerned authorities.

(Guest)

As usual, Mr. Kumar Doab could not resist tfrom makin 4 vague posts as of playing merely a number game. Rather, he revealed his mental imbalance through his last two posts, without any relevance to the query of the querist.

If he felt similar queries were discussed in many threads, he could well have provided the links of those threads to the querist, instead of making 4 useless posts.