1) Employment in private sector is governed by the terms and
conditions of employment, and unless the termination is shown to be
violation of the terms and conditions of employment, it cannot be said that
the termination is illegal.
2) if the contract of employment provides for one month’s notice, then, the maximum entitlement of damages of an employee who alleges illegal termination is one month’s pay.
3) yours is contract of personal service . you cannot file a suit seeking continuation of services with consequential benefits of pay etc and dis entitlement of the employer to
terminate the services . at most you are entitled to damages being one month pay
4) Supreme Court in the case of
Binny Ltd. & Anr. Vs. V. Sadasivan & Ors. (2005) 6 SCC 657 and which
holds that public policy principles or administrative law principles do not
apply to private employment.
5)In case of private employment,
the employers are fully justified in taking steps for termination of services, if
it finds that the employee is not upto the mark. Principles applicable in
public law domain do not apply with respect to employees in private
employment. Employment in private sector is governed by the terms and
conditions of employment, and unless the termination is shown to be
violation of the terms and conditions of employment, it cannot be said that
the termination is illegal.
6) even if there is illegal termination of services,
it is not possible to grant damages as claimed inasmuch as the principle of
mitigation of damages squarely applies. As per this principle of mitigation
of damages enshrined in Section 73 of the Contract Act, 1872 even if an
employee is illegally terminated from services, he cannot sit at home and he
must take sufficient steps to procure alternative employment.
7)even presuming there was
breach of contract, at best reasonable damages can be granted and once there
is a clause for termination of services by one month’s notice, it can only be
one month’s notice which can be treated as reasonable damages inasmuch as
parties understood the period for obtaining of an alternative employment as a
one month’s notice period