• Interesting case of wrongful termination by a foreigner company in India !

Hi,
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.
Timeline - My growth in the company
1.	One month bonus just after 4 months job only. 
2.	Within 6 months from joining date, Best New Joiner award was given
3.	sent to China within 5 months to train people
4.	Just after total 7 months, approx. 20% increment and 2 months bonus were also given.
I was being presented like the best example to all employees across all offices in India, China, Indonesia and Russia.
But in October month, 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.	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.
My questions:-
1.	Can it be considered as wrongful termination?
2.	Can I sue them for defamation because it has damaged my reputation?
3.	Well, appointment was signed by me and rules no.8B is mentioned there; still can it be challenged in court successfully?
4.	If I send notice to them, can it back fire to me?

Thanks
Asked 7 years ago in Civil Law

2 answers received in 30 minutes.

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13 Answers

Hi, it is a illegal termination of company without giving and justify reason .. You can approach the labour forum and file a case against the employee company for grant of compensation against the illegal termination .. If they have issued any unjustified reason for the termination you can also go ahead for filing defamation

Hemant Chaudhary
Advocate, Gurgaon
4630 Answers
67 Consultations

Firstly, as per the information, your termination is invalid.

Secondly, yes you can challenge it as it is there responsibility to let you know about the terms of the company pay roll meaning herein as from third party to company's payroll.

Thirdly, they didn't give you the notice period also (correct me if I am wrong here) which results breach of contract on their part.

And lastly, you can ask for that money also as a part of the compensation during the period when you are unemployed (may be) which you would have earned if you were at the job.

Sanjay Baniwal
Advocate, South Delhi
5474 Answers
13 Consultations

1)since you have accepted terms and conditions if appointment letter company could terminate you by giving one month basic salary which they have done

2) no case of defamation is made out

3)dont issue any legal notice to company

Ajay Sethi
Advocate, Mumbai
96829 Answers
7812 Consultations

the court would consider fact that you have signed the appointment letter

once you have signed the appointment letter terms and conditions would be binding upon you

Ajay Sethi
Advocate, Mumbai
96829 Answers
7812 Consultations

This termination, on the face of it is bad and in breach of your employment agreement. File a suit challenging your termination and for breach of the employment contract/agreement.

Also seek a declaration that the termination of your service from the position on which you were working is void ab-initio and inoperative and seek all consequential reliefs including monetary claims. Seek damages too.

Vibhanshu Srivastava
Advocate, Lucknow
9659 Answers
307 Consultations

Send a legal notice to your co. before taking recourse to any legal proceedings.

Vibhanshu Srivastava
Advocate, Lucknow
9659 Answers
307 Consultations

Dear Client,

Over all, u r bind by the terms of agreemnt .

1. Can it be considered as wrongful termination? - It is wrongful, but u r abide by the terms of agreement.

2. Can I sue them for defamation because it has damaged my reputation? - How will u calculate damages either in the form of reputation/pecuniary.

3. Well, appointment was signed by me and rules no.8B is mentioned there; still can it be challenged in court successfully? - depends, if u can prove its inflicted with malafied to ruin ur carrier or image.

4. If I send notice to them, can it back fire to me? - Thats ur statutory right, no consequences.

Yogendra Singh Rajawat
Advocate, Jaipur
22989 Answers
31 Consultations

If the termination has been done in breach of the terms of the employment contract then you go head and challenge the termination and sue the company for breach of contract.

Anilesh Tewari
Advocate, New Delhi
18090 Answers
377 Consultations

You may issue a legal notice and also claim the consequential benefits, there shall be no negative impact of sending a legal notice.

Regards

Anilesh Tewari
Advocate, New Delhi
18090 Answers
377 Consultations

My questions:-

1. Can it be considered as wrongful termination?

If you think that it is wrongful termination, you have to prove that how it is wrong especially when there is a clasue called 8 B which was acknowledged by you.

2. Can I sue them for defamation because it has damaged my reputation?

There is no question of defamation for terminating your services invoking the conditions of employment

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

You can challenge the same in court, but will be it successful or not is to be seen based on how you present and convince the court.

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

You send a legal notice seeking explanation, there is no question of backfire, they have to give a reply to your legal notice.

T Kalaiselvan
Advocate, Vellore
87030 Answers
2337 Consultations

5. 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.

Having acknowledged the employment offer letter with the conditions therein, you have very less chance of successfully challenging their order of termination in the court of law, however if you have decided to go ahead, you may proceed through court agaisnt this.

The points what you have discussed are of no use, instead you probe into the reason for your sudden termination and get benefited about the maintainability of any case to be filed.

T Kalaiselvan
Advocate, Vellore
87030 Answers
2337 Consultations

You can claim damages for wrongful termination by filing suit in civil court 

 

2) file case in Gurgaon 

 

3) court fees is state subject and varies from state to state 

 

4) you would not get any exemption from payment of court fees as you are not an indigent person 

Ajay Sethi
Advocate, Mumbai
96829 Answers
7812 Consultations

1.  You can file a writ petition seeking relief for compensation.

2. You can file a writ petition in the high court in which the company falls.

3. You can enquire it locally because the court fee differs from one state to another.

4. No.

T Kalaiselvan
Advocate, Vellore
87030 Answers
2337 Consultations

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