Blog

When it comes to wrongful termination, employees often feel helpless when facing powerful employers or organizations. But in India, the law firmly protects workers’ rights, ensuring that no one can be unfairly dismissed without just cause or procedure. Let’s go through an informative and actionable guide on how employees can defend themselves against unfair dismissal in employment and seek legal recourse.

Understanding Unfair Dismissal in Employment

Unfair dismissal occurs when an employer terminates an employee’s contract without following due process, without sufficient reason, or in a discriminatory manner. In India, wrongful termination violates labour laws and constitutional rights.

Some common examples of unfair dismissal include:

• Dismissal without a valid reason (e.g., arbitrary or personal bias)
• Termination without following due process as outlined in employment contracts or company policies
• Retaliation for whistleblowing or raising concerns regarding workplace harassment
• Termination based on discrimination (gender, caste, religion, pregnancy, etc.)

What Laws Protect Employees from Wrongful Termination?

India has several laws in place to protect employees from unfair dismissal. These laws apply to various types of employment, from contract workers to permanent employees.

1. The Industrial Disputes Act, 1947

This is the primary legislation governing employment relations and wrongful termination. According to Section 25F of the Act, an employee who has completed more than 240 days of continuous service cannot be terminated without:

• A valid reason for retrenchment
• Prior notice of at least one month or payment in lieu of notice
• Compensation at the rate of 15 days’ wages for every completed year of service

Employees covered by this law can seek reinstatement, back wages, and compensation.

2. The Shops and Establishments Act

Applicable to various states, this Act governs the rights of employees working in shops, hotels, restaurants, and other commercial establishments. Employers must give valid notice and reasons for termination. This law varies by state but generally protects employees from arbitrary dismissal.

3. The Payment of Gratuity Act, 1972

If an employee with more than five years of continuous service is terminated, they are entitled to receive gratuity. Dismissing an employee without paying their rightful gratuity is unlawful.

4. The Employment Contract

Often overlooked, the employment contract is a legal document that details the conditions of employment. Any termination that violates the terms of the contract can be considered wrongful. This is why it is essential for employees to fully understand and safeguard their contract terms.

5. The Constitution of India – Article 14 and 16

Article 14 guarantees the right to equality before the law, and Article 16 provides equal opportunity in public employment. Any termination that is discriminatory in nature can be challenged under these constitutional provisions.

What To Do if You Are Wrongfully Terminated?

1. Review Your Employment Contract

Look for clauses related to termination, notice period, severance pay, and grounds for dismissal. This will help you determine if your termination violated your contract.

2. Request the Reason for Termination in Writing

Always ask your employer to provide a written explanation for the dismissal. This serves as evidence if the termination is arbitrary or lacks a valid reason.

3. File a Complaint with the Labor Commissioner

If you’re an employee protected under the Industrial Disputes Act or state-specific employment laws, you can approach the Labor Commissioner. The Labor Department can mediate and provide a remedy such as reinstatement or compensation.

4. Raise a Legal Dispute

If negotiations with your employer fail, you can file a case in the appropriate labor court or tribunal. The court can order reinstatement, payment of back wages, or damages for wrongful termination.

5. Seek Legal Counsel

Consult a labor law advocate to assess your case. They can help you file a claim, navigate the legal proceedings, and maximize your chances of success.

How Can Employers Avoid Wrongful Termination Claims?

From an employer’s perspective, ensuring compliance with the law can prevent wrongful termination claims. Employers must:

• Clearly document all reasons for termination.
• Ensure adherence to the terms of employment contracts.
• Provide sufficient notice and severance pay.
• Avoid discrimination and retaliation.

Advocacy for Workers’ Rights in India

Workers’ rights activists have long emphasized the need for stronger protections and awareness. Many employees are unaware of their legal rights or fear retaliation for raising their voices. This is where advocacy plays a vital role in informing workers about their rights and empowering them to seek justice. India’s labor laws are designed to protect both contractual and permanent employees, and we must encourage workers to speak out when those laws are violated.

Take Action, Know Your Rights!

Unfair dismissal in employment can be a traumatic experience, but Indian law provides several avenues for employees to fight back. Whether it’s filing a case in a labour court or seeking mediation, Innerwork Advisors LLP is the best legal service provider in Kolkatta.

If you or someone you know is facing wrongful termination, contact us for help. Protecting employee rights isn’t just about individual cases—it’s about ensuring that fairness and justice prevail in workplaces across the country.

Also Read: What are the Copyright Laws in India?