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John Paul   18 April 2017

Wrongful termination

I received termination letter from my employer saying the role for which I was selected doesn’t exist. Please find below the mail communication.

__________________________________________________________________________________

Dear ABC,

 

Further to our discussion, this mail confirms that your employment with our company is being terminated effective immediately as the role does not exist. We sincerely regret this action, and can assure you that we have only done so after considering all alternatives.

 

Under the circumstances, we will be implementing the following severance arrangements:

 

1. Your employment will end effective immediately.

2. You will be paid any unpaid salary accruing from the effective date of our last payroll to today, subject to the usual statutory deductions.

3. Also you will be paid 15 days’ salary towards notice period.

 

We wish you well in your future endeavours.

__________________________________________________________________________________

I haven’t signed my resignation yet; the HR dept. is forcing me for the same. I joined on 27th March 2017 as a Project Manager and I was offered a CTC of 9.6 LPA. Yesterday they gave me an option to keep my job: salary will be cut down to 3 LPA.

Events in detail:

My current organization (Office Location: Navi Mumbai) is one of the subsidiary of my parent company (Office Location: Panchkula). I firstly joined another subsidiary (Office location: Mohali) of the same parent company right after completing my PGDM from an IIM. Later on I was transferred to the parent company before being transferred to the subsidiary office at Navi Mumbai.

Please see the timeline below to get a better idea of the events:

April 2016: I joined a mobile app/web development company as a Business Analyst through campus recruitment at my college, Indian Institute of Management. Offered salary was 9.5 LPA and was promised a raise of 10% after completion of one year (Office location: Mohali; subsidiary of my parent company)

September 2016: completed my probation period of 6 months; position confirmed in the organization.

Dec 2016: I was asked to work on a confidential project for my parent company; so I was transferred to the parent company effective from Jan 2017(Office Location: Panchkula). My Designation and CTC remained same.

Jan 2017: joined the parent organization as a Business Analyst for the confidential project. Received transfer letter from the former company.

Feb 2017- March 2017: the confidential project was put on hold; so I requested a transfer back to my former company. They didn’t approve my transfer request; they assigned me to another project at my Parent company. I was assigned with some seemingly impossible tasks and responsibilities which were entirely different from those mentioned in my JD. My new manager wasn’t satisfied with my work and told me he is going to have a word with the HR dept. to get me aligned with some other productive role.

4th week, March 2017: HR dept. in my parent organization communicated to me that I am being transferred to another subsidiary in Navi Mumbai and I will be reporting directly to the CEO.

Subsidiary CEO called me on phone. We had a conversation for 15-20 minutes. She said several things including what they do, what they expect me to do and etc. I said this is not what I used to do, and I found this interesting and challenging, so I want to join. She said ok and hours later, I received communication that I can join the subsidiary company on March last week.

 Since I was about to complete a year in the company and being transferred to another location, I requested the raise which was promised to me; the same was declined. Parent company promised to reimburse 1 week hotel accommodation expense, 3rd AC train fare, cab fares as part of the relocation. They told me that I will get the reimbursement from the newly joining subsidiary.

27th March 2017: Meeting at Noida office with HR country head for the newly joining subsidiary. I completed joining formalities. I remember seeing a clause in one of the doc which said the joiner will be in probation for first 3 months. I thought this won’t be applicable for me since I am being transferred from my parent company to the subsidiary and I have completed my 6 months’ probation in my first company.

29th March 2017: joined Navi Mumbai subsidiary office as a Project Manager. I came to know that remuneration levels of this company are way below the industry standards across designations.

6th April 2017: received offer letter. There was nothing mentioned in the offer letter regarding termination or notice period/probation. My designation was Project manager and CTC was the same. Received ‘Relieving letter/Experience certificate’ from the parent company; no ‘transfer letter’ was issued.

I happened to see the ‘Exit/Separation policy document’ of the company. It says:

Termination of Employment:

• Situations where the employee’s services are required to be terminated on account of poor performance and/or disciplinary action

• Vertex Customer Management India Pvt. Ltd. reserves the right to terminate employment on grounds of policy, misconduct or unsatisfactory job performance.

• In case of termination of services, the employee would be required immediately to return, to the company, all assets and property (including any leased properties) of the company including documents, files, books, papers and memos in their possession or custody

10th April 2017: I submitted the reimbursement claiming forms to the concerned person in HR dept.

11th April 2017: HR manager took me to a meeting room.

HR: “The role for which you were selected doesn’t exist anymore. So you can resign now”.

Me: “I won’t sign the papers until I receive the termination letter with reason in paper or in e-mail”.

He behaved rudely and harshly demanding my signature on the papers. He said the termination is with immediate effect and I don’t have to serve the notice period. He didn’t even allow me to step out of the meeting room for a while.

I talked to the CEO and the senior HR manger; their reply was “your skillset doesn’t match with our current requirement, so you have to leave”. I talked to the HR Head in Noida office; he also had the same reply. He talked to the HR manager in Navi Mumbai office and asked him to send the ‘termination of services’ email to my personal mail (the same I have kept in the 1st question here)

Till now I haven’t signed the papers. I requested the CEO to reconsider the decision. Yesterday they offered me to retain the job by accepting the package of 3LPA.

What should I do? Please advise me. Will I get justice?



Learning

 5 Replies

Kumar Doab (FIN)     18 April 2017

If you have been terminated then why should you sign resignation letter?

Has the offer to aqbsorb you on such low CTC been made to you in writing?

Are you being asked to apply for this job in writing?

 

John Paul   18 April 2017

If you have been terminated then why should you sign resignation letter?

The Hr dept. is forcing me to resign. The way I understood it, they can terminate me for either a) poor performance or b) disciplinary action. Either case, they will have to give me a notice first. So, they want me to resign willingly.

Has the offer to aqbsorb you on such low CTC been made to you in writing?

No, the CTC mentioned in my offer letter is 9.6 LPA itself.

Are you being asked to apply for this job in writing?

No. The parent company HR dept. communicated to me that this is a transfer.

Kumar Doab (FIN)     18 April 2017

Has the offer to absorb you on such low CTC (3LPA) been made to you in writing?

Employee can be transferred/deputed.If employee has been terminated then there is NO employer-employee relationship.

How can you be transferred?

Ritesh Maity (Labour Law Advocate)     18 April 2017

Since you have joined only on 27th March 2017 (have worked for less than a month) and you being a General Manager (assuming that you are not a workman) you do not have any scope to challenge before Labour Court/ Industrial Tribunal.

 

Or am I missing any facts. State the date of joining and your nature of work. 


(Guest)

In your very long descriptttion, you seemed to have confused the three issues, termination, resignation and transfer. In fact, your descriptttion need be made clear, whether your parent company terminated you or transferred you some of its subsidiary, or you resigned and was relieved on resignation. If trasferred, what was the original CTC and what CTC on the transferred job?.Also, which documents you have not signed yet and on what consideration?

Also, what were the terms of your employment in your parent company and what in the new company, specifically, whether the transfer clause, if available in your terms of appointment in the original company?

The most crucial point to clarify is whether you desire advice about your termination or resignation from your previous organisation or from the present organisation and on what exactly you want to ask on any specific issue?


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