Validity of termination of employment
DIPAK KUMAR GUPTA
(Querist) 27 February 2014
This query is : Resolved
Dear Sir,
Greeting from Dipak Kumar Gupta
I would like to raise the following issue with a request to kindly advise me.
Please note that my employment contract w.e.f.01/08/2013 consists of only my designation as Financial Controller,monthly consideration (inclusive all) and one-month notice period.
My employer is not fully organized.There is no hierarchy.They are engaged in manufacturing of Ayurvedic Proprietary Cosmetic.
Now,suddenly directors has appointed a HR and within 2-days of his joining,I received a mail on 14/02/2014 from him alongwith cc to directors that the Company has terminated me since my performance is not in line with like of a senior manager.
I have also not received any consideration for notice period except a mail that my dues will be paid after deduction of full TDS for 2013-14 since no tax has been deducted since my joining.
Whether my termination is unlawful?
Please advise me.
Thanks & Regards
Dipak Kumar Gupta
gupta.dipak@icai.org
Anirudh
(Expert) 27 February 2014
It is a private organization. Your engagement/employment with them is on the basis of a contract. Contract provides for termination with one month notice. They have terminated you and also informed you that the full and final settlement will be made after effecting TDS which was not done earlier. I do not find anything unlawful or illegal.
(By the way I am little curious to know how and why TDS was not deducted since your joining which was in August 2013 and you might have received your first salary in Sept. 2013 - as a Financial Controller you should be knowing).
Rajendra K Goyal
(Expert) 27 February 2014
In private concern such instances are common. You have to try for another job. No immediate relief possible.

Guest
(Expert) 27 February 2014
Depends upon the terms of your appointment/ agreement with the company. So, on that issue, only examination of your agreement with the company can help arriving at some appropriate opinion.
About non-deduction of tax at source, being a financial controller the responsibility would devolve more on you, rather than anyone else of the company. If they have decided to make full TDS, you should feel relaxed.
T. Kalaiselvan, Advocate
(Expert) 28 February 2014
There appears no legal infirmity in the termination notice and since the company has already intimated that your dues will be settled in due course of time, you do not have any issue so soon.
DIPAK KUMAR GUPTA
(Querist) 01 March 2014
Kindly note that TDS was not deducted since it was to be borne by the Co. Reason for termination is not clear "Your service is not as satisfactory as a senior position."