I worked with a MNC for almost 5 years. Last week, i was called by the local branch director of the company and advised on Phone that my services with the company is terminated saying it was a company's strategic decision to do so. My whole team was given the pink slip while another department was fully retained. No termination letter or email was sent to me. It was only a verbal message. Two days ago the company sent me an email asking for my resignation letter and a handover of all office equipment in my possession. However i have not sent any resignation so far. For your guidance i have reproduced the "Termination clause" from my employment contract. Please note that im not in breach of 7.a) & b). What legal recourse do i have against the company?? Please advise.
7. Termination
a) Your employment may be terminated by your serving 1 (one) month’s written notice or COMPANY serving you with 1 (one) month’s written notice.
b) Notwithstanding the provisions specified in Clause 7 a) your employment may be terminated summarily by COMPANY:-
i) if you have been absent from work for more than 90 days (whether consecutive or not) due to sickness or injury, in any period of 52 weeks.
ii) if you are convicted of a criminal offence other than an offence which, in the opinion of the partners of THE COMPANY, does not affect your position as an employee of THE COMPANY having regard to the nature of your duties and the responsibilities you have undertaken pursuant to this contract. For the avoidance of doubt you may be summarily dismissed if you are convicted of any offence under any insider dealing legislation or regulation applicable to the UK or elsewhere; or
iii) if you are held or deemed by any supervisory or regulatory body or authority not to be a fit or proper person to hold the position in which you are employed under this contract; or
iv) if you commit any material or any repeated breaches of your obligations under this contract; or
v) if you seriously neglect your duties or are guilty of gross negligence in the performance of the same; or
vi) if any Court or Tribunal or any internal inquiry conducted by THE COMPANY upholds any allegation made against you of racial, s*xual, disability or any other form of discrimination or of harassment; or
vii) if you are guilty of excessive absenteeism or tardiness after having been given written notice of the same and an opportunity to remedy such conduct; or
viii) if you are proven guilty of any gross misconduct. Gross misconduct for this purpose includes, but is not limited to, the following:
- theft of or damage to COMPANY’s property or the property of any other employee of COMPANY
- unauthorised use or downloading of COMPANY’s computer records or data
- fraud
- incapacity for work due to the influence of alcohol or illegal drugs, or taking any illegal drugs on the premises of COMPANY or any of its companies
- physical assault committed against any person within the premises of THE COMPANY or any person associated with COMPANY’s business or of its companies
- gross insubordination or serious violation of or refusal to comply with any lawful instructions or directions given to you in respect of the conduct of your duties under this contract
- any refusal or failure to provide to a partner of COMPANY any material information concerning any transactions or other work that you have conducted
c) In the event that THE COMPANY serve written notice to terminate this contract under Clause 7b):
i) so long as you are not required to work during such period you will remain employed by COMPANY and will, save as is otherwise provided in this contract, continue to receive your salary and other contractual entitlements and you will continue to be bound by the terms of this contract including, without prejudice to the generality of the foregoing, all express or implied obligations of good faith and fidelity. You will not during any such period directly or indirectly do any work for or provide any services or advice to any other person or company or firm or other business entity nor be engaged, concerned or interested in any way in any other business (save as provided in Clause 6 c) of this contract) without the written consent of a partner of THE COMPANY. You shall not during any such period without the written permission of a partner of COMPANY have any contact with any client of COMPANY nor contact or have any communication (other than for strictly social purposes) any other employee of COMPANY.
ii) You must, if requested, return any information and any property in your possession belonging to COMPANY.
iii) You must not, without obtaining your Head of Department’s express permission, delete any data, other than personal items not pertaining to COMPANY’s business, from either your office or home computer
d) On the termination of employment, for whatever reason, you shall immediately return all records, documents, computer discs, papers, notes (including copies) and everything else which is in your possession or under your control which retains or records confidential information, as defined in Clause 8 below, belonging to COMPANY
13. Severability
You acknowledge that at the date of this contract the duration, extent and application of each of the provisions of this contract are considered no greater than is necessary for the protection of the interests of COMPANY and reasonable in all the circumstances. It is further acknowledged that if any provisions shall, nevertheless, be invalid because of changing circumstances or otherwise, this contract shall be deemed effective as if any invalid part were deleted.
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14. Law and jurisdiction
This contract shall be subject to Indian law and the non-exclusive jurisdiction of the Indian courts.
