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leo (Manager)     06 December 2013

Termination from services post resignation

Dear Lawyers and Learned Members,


Need Legal guidance on the given case. I had resigned from an Organization and submitted all the assets upon resignation.

After few days, the organization has sent me termination letter via Legal Department on the grounds of Information leakage to Competition on the basis that I was talking to other colleagues on the opportunities that directly are not under my business domain.


They had not given any acknowlegement to my resignation mail nor are they giving me relieving certificate thus enabling me to join another organization.


Please advice my options.


Regards



Learning

 3 Replies

Kumar Doab (FIN)     07 December 2013

 

 

You and redg. office of the company are in which state?

 

 

 

What is this establishment: Commercial or Industrial?

 

How many employees does it have?

 

What is your designation and nature of duties?

 

Does the establishment have its Certified Standing Orders (CSO) and has it extended it to your designation?

 

 

Is the act charged in termination order listed amongst misconducts in standing orders or service rules or conduct and discipline rules or service codes and regulations or HR policy etc?

 

The service certificate showing basic information e.g. tenure of service, designation, location etc and should be issued.

Upon receipt of the notice company should have supplied the acknowledgment of notice of resignation and its response on acceptance of resignation or non acceptance and exit guidelines, handover of charge and other formalities to be completed by employee.

 

In today’s market scenario all employers are aware about style and manner of terminations being effected.

 

You may apply all of your resources and convince the consultants and interviewers about the bad decision of termination and convince them and firm up the next venture.

 

Since the charge and termination can affect your future prospects therefore it shall be appropriate to approach a labor consultant/service lawyer in person and show the job advertisement, job application, interview call letter, appointment letter, standing orders (Certified/Model) applicable to the establishment and extended to your designation, service rules, conduct and discipline rules, service codes and regulations, HR policy etc and give inputs in person and understand the merits and proceed under the expert advice of your lawyer to contest the termination order and demand to call it back.

 

Employee should always remain vigilant and should also know how to behave during notice period.

 

At such moment employee should not panic, should organize all the evidence and record and provide inputs to his lawyer.


Employee should look for other avenues that might be available to generate funds and must attempt to settle an enterprise that may come handy in future.

Employee may utilize the time to add to his qualification.

 

 

You have posted that:

 

-----“ After few days, the organization has sent me termination letter via Legal Department ‘

 

It can issue if it is authorized to issue and sign order of termination, by board of the company.

 

If it is not authorized then it can not.

 

 

------“ the organization has sent me termination letter via Legal Department on the grounds of Information leakage to Competition on the basis that I was talking to other colleagues on the opportunities that directly are not under my business domain.”

 

These colleagues referred by you are within the same company?

 

The charge stated in termination order is to be understood properly.

 

 

Did the company serve any show cause notice before termination and allow fair opportunity of hearing and natural justice?

 

The right to hearing is a fundamental right (audi alteram partem). Under law, no person can be accused of anything without giving him proper opportunity of being heard.

 

 

In the court the legal advisor and employer shall have to establish what good interest of the organization was served, what are the compelling reasons for not having conducted the domestic inquiry and what the leading evidence is and how come it is misconduct?

 

The onus of litigation has already been shifted on you.

 

------“ the organization has sent me termination letter”

 

The termination is issued citing a charge/misconduct.........................hence company won’t agree to issue relieving letter easily citing some stupid internal policy.

 

Although the service certificate showing basic information e.g. tenure of service, designation, location etc should be issued.

 

Since it is created as a case of misconduct it won’t agree to tender notice pay as well.

 

The order of termination and misconduct shall remain in your personnel file and it shall be consulted during reference check..........................................and it can adversely affect you.

 

 

 

-------“ They had not given any acknowlegement to my resignation mail nor are they giving me relieving certificate thus enabling me to join another organization.”

 

Do you have the copy of the resignation mail?

 

 

 

------“the organization has sent me termination letter via Legal Department on the grounds of Information leakage to Competition...........................................”

 

 

Has it been stated in explicit terms in any of the rules and policies of the company that employee can not talk to colleagues in same company on matters that are not his business domain?

Is the allegation true and does the company have an evidence?

 

Can you establish that you have not leaked any information?

 

It is normal that when an employee resigns and joins another company the peers and colleagues discuss.

 

It is also known that abnormal, nosy, zealous, vindictive personnel in line management, HR etc pounce and perceive it as that other employees may also flock with employee that has resigned.

 

 

As the termination order has been issued by legal cell therefore the employer has sought the legal advice and legal advisor seems to have rendered a legal advice ( It should be a sound and valid legal advice) validating the charge and termination due to the charge and has issued the termination order.

 

Your lawyer may opine that has company has leveled a charge and thus this order may be stigmatic in nature.

 

If legal advisor has leveled a charge then before leveling the charge the legal advisor must have related it with list of misconducts in standing orders, rules and regulations, and should have granted an opportunity of hearing and should have lead the evidence and should have proved the charge.

 

Did you accept the charge in writing and did you tender any apology?

 

 

You may demand to supply you the copy of all notes of legal advice in this case and notes and flow of interactions between employer and legal advisor validating the charge and termination order.

 

You must demand to allow you to examine your personnel file and seek an appointment for it.

 

Your lawyer may opine that legal advisor can be charged by name.

 

Your labor consultant/service lawyer-law firm that has examined all of your docs and inputs can advice you the best. 

 

 

leo (Manager)     07 December 2013

Dear Kumar,


Please find below the responses:

1. Location : New Delhi

2. Establishment : Commercial IT MNC

3. Employees: Approx. 35

4. Nature of Duties : Sales and Business Development

5. Never Heard of CSO

6. In Employment contract the clause mentioned as 
17. 17.1 The Company will be entitled to terminate the Agreement, without assigning any reason with a written notice of one (1) month. However,
during the first six months of this Agreement, the Company will be entitled to terminate this Agreement at any time with a prior notice of two
(2) weeks.
17.2 Employee will be entitled to terminate the Agreement, through no fault of the Company with a written notice of one (1) month.
17.3 During the written notice period set forth in 17.1 above, the Employee will continue to receive the same salary and related benefits due under this
Agreement, unless the Employee refuses to render services to the Company during such period.
18. The Company may by written notice terminate the employment of the Employee with immediate effect and without entitlement to any compensation and/or notice period and/or any payment due to the Employee, if he:
18.1 commits any act of gross misconduct as determined by the Company any material breach of his obligations under this Agreement; or
18.2 is guilty of any conduct which in the sole discretion of the Company’s management brings him, the Company or any associated company into disrepute;
or
18.3 is convicted of any criminal offence (excluding an offence under road traffic legislation for which he is not sentenced to any term of imprisonment, whether immediate or suspended); or
18.4 commits any act of dishonesty whether relating to the Company, any associated company, any of its or their employees, or otherwise; or 18.5
becomes bankrupt or makes any arrangement or composition with his creditors generally; or
19. 19.1 Once notice has been given under clause 17 to terminate the Employee's employment, whether by the Company or by the Employee pursuant to
this Agreement, then the Company for the period of such notice or such shorter period as it shall elect:
19.1.1 shall be under no obligation to vest or assign to the Employee any powers or duties or provide any work for the Employee;
19.1.2 may exclude the Employee from any premises of the Company or any associated company;
19.1.3 may prevent the Employee from continuing to work during the time of the notice period.
20 Upon termination of employment for any reason, or upon absence of employee for a period of over two (2) months for any reason whatsoever, the Employee shall immediately deliver to the Company or to its order all books, equipment, documents (including copies), materials, credit cards, keys and other property of or relating to the business of the Company or its associated companies then in his possession or which are or were last under his control.

7. Upon having put my papers, there was no acknowledgement given however submission of all the assets was done the very next day. There is no such guidelines shared to me upon having resigned.

8. There is no such guideline that you cannot talk to another colleague. Also the allegations are not true. Have not even talked to anyone after resignation. Not sure if they bring any such discussion prior my resignation which might have happened as a friendly discussion between colleagues. I don't know how i can prove that i have not leaked any information???

9. The colleague being referred here is with the same company in which i am working. Also there has no chance given to hear by my management. and lastly, there is no acceptance of charges however have send the mail to my management stating there is no such breach and the charges should be revoked and thus providing me release and relieving letter.


I am currently not contesting for money but for clear exit as it would determine my job and future with other organization where i plan to join. Prior joining, have to submit my relieving certificate. Already have the offer letter from them.

Hope this clarifies. Do let me know in case of additional details. Please share your contact if possible for a call.

Kumar Doab (FIN)     07 December 2013

 

You have not posted your designation.

 

 

 

You have posted that:

 

----“The colleague being referred here is with the same company in which i am working.

 

“Not sure if they bring any such discussion prior my resignation which might have happened as a friendly discussion between colleagues. 

 

 

“grounds of Information leakage to Competition on the basis that I was talking to other colleagues on the opportunities that directly are not under my business domain.

 

It is guessed that the opportunities available with your future employer have been quoted and some one from future employer might have contacted employees of current employer or vice versa.

 

The current employer might have treated it as solicitation.

 

-----“Also the allegations are not true.

 

“Also there has no chance given to hear by my management. and lastly, there is no acceptance of charges however have send the mail to my management stating there is no such breach and the charges should be revoked and thus providing me release and relieving letter.“

 

 

I don't know how i can prove that i have not leaked any information???

 

 

Since no notice/show cause notice/ charge sheet has been issued, detail and background of charge has not been supplied, the opportunity of hearing has  been denied.

 

You have however refuted the charges.

 

 -----“ however have send the mail to my management stating there is no such breach’

 

 

If the good offices of appointing authority, MD, Chairman, Company Secretary (write to them) maintain studied silence and do not provide any relief then you may need to look at other forums where you can agitate...............................that can be;

 

-Lawyer/law firm: A legal notice can help to drill sense into the heads. You may request your lawyer to include the legal advisor that has signed on termination order and all amongst good offices a party in list of noticees............

 

Designation alone does not decide employee is covered as ‘Employee’ as in Shops and Commercial Establishments Act, and ‘Workman’ as in ID Act....................

 

Your lawyer may ask you a set of structured questions and may opine that you are covered.

 

-Trade Unions/ IT Employees Unions: They know precise ways to handle such issues

 

-Inspector under Delhi Shops and Commercial Establishments Act; IT companies are covered under this Act

 

-o/o Labor commissioner

 

-Civil Court.

 

A legal advisor at times also gets sued;

 

You may go thru:

https://www.lawyersclubindia.com/experts/Implication-of-an-advocate-in-false-private-case-439076.asp#.UqCyOtIW1MA

 

 

 


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