What Is The Illegal Termination Of Employees?

Written by:

Adv Tanvi Malik

Updated: 06-03-2024

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A wrongful termination of an employee occurs when an employer terminates/dismisses/removes an employee without offering valid reasons for such action. As a result, when an employer or firm is unable to provide acceptable grounds for an untimely termination of an employee, the termination is regarded as illegal. Furthermore, denying an employee the right to be heard violates the fundamental legal concept of Audi alterem partem, which means "listen to the other side.

Employment termination laws in India

Employee termination in India is governed by a variety of laws and regulations, such as the Industrial Disputes Act of 1947, the Shops and Establishments Act of 1961, and the Contract Labour (Regulation and Abolition) Act of 1970. These laws protect employees from unlawful termination, and businesses must offer proper notice or compensation to terminated employees.

The rules make it illegal for companies to fire employees because of their gender, age, caste, or religion, and they protect whistleblowers who disclose illegal activities in the workplace. The Indian government has recently made many modifications to labor laws to give more employee protection, including the Code on Wages, 2019, which aims to simplify and standardize wage legislation across all industries.

Despite these laws and regulations, Indian corporations and MNCs continue to illegally terminate employees. In light of these regulations, employees in India have the right to seek remedy in the event of wrongful termination, including the right to submit a complaint with labor authorities or pursue legal action against the employer.

Legal remedies for employees under employment laws in India

Civil remedies:

To bring a civil action, an employee may seek reinstatement, back wages, financial compensation, mental anguish damages, and other appropriate remedy from the court.
To register a complaint, employees can approach the Labour Commissioner, Labour Court, or Industrial Tribunal under the Industrial Disputes Act, 1947, depending on their jurisdiction.
Employees can seek alternative conflict resolution through arbitration or conciliation if their employment contract includes such clauses.

Criminal Remedies:

Employees who are terminated for criminal crimes like fraud, forgery, or harassment may be able to file a police report. The police will examine the situation and, if necessary, file criminal charges against the employer.
The process includes filing a criminal complaint against the employer for wrongful termination under Section 406 of the Indian Penal Code (IPC) for criminal breach of trust.
Making a complaint against the employer for cheating under Section 420 of the IPC.
Filing a defamation complaint against the employer under Section 499 of the Indian Penal Code.

India employment law termination: Rights of employees’ post-termination of employment

Right to Compensation: A remedy is also available where law or a contractual relationship confers a right. The company should let the employee serve their notice period. Otherwise, such personnel should be rewarded with a 15-day wage or an equivalent notice period.
Right to a severance package: A severance payment is a payment paid by an employer to an employee who has been fired. It is meant to provide financial assistance to the employee during the transition period between jobs. Employees in India have the right to severance pay if their employment is terminated.
Right to get notice of termination of employment: The right to receive a notice of termination of employment refers to an employee's right to be notified in advance by their employer of the termination of their employment contract. This notice time allows the employee to plan for the end of their work, look for alternative possibilities, or make required arrangements. In addition, he or she has the right to obtain a termination letter detailing the end date.
Right to be heard: In India, the right to be heard in cases of improper employee termination is a critical component of labor legislation. It ensures that an employee facing termination is allowed to present their case and defend their rights before a decision is made.
Right to have an inquiry undertaken: An employee has the right to inquire in the event of an improper and unjust termination. The facts and circumstances should be thoroughly examined and balanced to determine whether the employee is at fault or must be held liable.

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