Pankaj Garg (Sales Manager) 15 February 2009

Terninating for not accepting salary cut

I joined a Delhi based company last year in Feb as a national sales manager. When I took up the job, situation was very bad and after putting everything I have got in a years time and creating a network for the company, my directors are asking me to take a salary cut (70-80%) by taking advantage of economic slowdown and also saying that comapny is not making any profits. I have denied their offer for this huge cut. Then they told me that they will issue a termination letter with one months salary. But I can not accept it as getting into a new job will take 6 months atleast.

While the time of joining, I recieved an offer letter mentioning the salary only. Verbally we agreed for a notice period of 6 months. Nothing else. This company is run by an NRI.

Please guide as how should I proceed further.

Awaiting your reply.

Thanks
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5 Replies

PALNITKAR V.V. (Lawyer) 17 February 2009

If there is nothing in writing about the termination clause, then the employer would get complete authority to terminate the service. How would you prove verbal agreement?

Mr. Gaurav Pandya (Advocacy ) 20 February 2009

Hi !

Plz mail me your detailed querry -

gaurav_the_great@hotmail.com

some ways can be come

Swami Sadashiva Brahmendra Sar (Nil) 16 March 2009

certainly u r not a "workman" so as to avail benefits of ID Act. u r not a government servant and the company is not a government instrumentality so, u can not approach to high court also. the only remedy available to u is to insist on performence of employment contract/ appoint letter. u should insist on notice pay not less than that prevalent in corporate field for executives. normaly the appointment letters in private and public sector contain a clause of three months notice or notice pay by either party for termination of services.

if u want to take legal action, u will have to file a civil suit for performance of contract and/or for compensation/ damages and in that case it will be advisable to claim 6 months salary. though varbal agreement will not be of much asistance to u, but the period of 6 months can be considered as reasonable period.

Swami Sadashiva Brahmendra Sar (Nil) 22 March 2009

CIVIL APPEAL NO.1718 OF 2009

(Arising out of SLP(C) No. 29419 of 2008)

Hongkong & Shanghai Banking Corp. Ltd. .... Appellant

Versus

Government of India & Anr. .... Respondents

dear mr. pankaj ! pls see above decision of SC . u may find it by judis . it has been delivered on 18/03/09. you may gather some idea about your status as workman. but pls note that the SC has not laid down any principle of law in this case as the case was at the stage of final arguments before Industrial tribunal and the question of status of emloyee was raised first time before SC where yhe issue of interim award was under consideration. in this case the salary was Rs. 58300/ pm.