Illegal Termination of Employees by Multi-National Companies (MNCs) – Legal Remedies

Many employees in India work for multinational companies (MNCs) that offer them attractive salaries, benefits and opportunities. However, some of these employees also face the risk of illegal or wrongful termination of their employment contracts by their employers, without any valid or just cause, or without following the due process of law. Such termination can have devastating consequences for the employees, such as loss of income, livelihood, reputation, career prospects, mental health and dignity. It can also affect the morale and productivity of the remaining employees, as well as the reputation and goodwill of the employer.

What is illegal termination of employment?

Illegal termination of employment refers to the situation where an employer terminates an employee without a valid or just cause, or without following the due process of law. Illegal termination of employment can be based on various grounds, such as discrimination, retaliation, breach of contract, poor performance, misconduct, etc. However, these grounds have to be proved by the employer with sufficient evidence and justification, and the employee has to be given a fair chance to defend himself or herself. Moreover, the employer has to comply with the relevant labour laws and regulations that govern the termination of employment in India.

What are the laws governing termination of employment in India?

Termination of employment in India is governed by various labour laws, depending on the nature and category of the employer and employee. The labour laws in India aim to protect the rights and interests of employers and employees and prevent unfair or arbitrary practices in employment relations. Some of the key labour laws that regulate the termination of employment in India are:

·         The Industrial Disputes Act, 1947: This act applies to industrial establishments, such as factories, mines, plantations, etc., where there are more than 100 workmen employed. This act provides for various modes of settlement of industrial disputes, such as conciliation, arbitration, adjudication, etc. This act also lays down the conditions and procedures for termination of employment of workmen by employers, such as notice period, retrenchment compensation, prior permission from appropriate authorities, etc. This act also empowers the labour courts and tribunals to grant relief to workmen in case of illegal termination of employment, such as reinstatement, back wages, damages, etc.

·         The Industrial Employment (Standing Orders) Act, 1946: This act applies to industrial establishments where there are more than 100 workmen employed. This act requires every employer to frame and certify standing orders in consultation with the workmen or their representatives. The standing orders are rules that regulate the conditions of employment, such as the classification of workmen, hours of work, leave, holidays, wages, misconduct, disciplinary action, termination of employment, etc. The standing orders have to be displayed prominently at the workplace and have to be followed by both the employer and employee. Any violation or deviation from the standing orders can be challenged by either party before the certifying officer or the appellate authority.

·         The Shops and Establishments Act: This act applies to commercial establishments, such as shops, offices, hotels, restaurants, etc., where there are less than 100 workmen employed. This act is enacted by different states with minor variations in the rules and regulations. This act regulates various aspects of employment conditions, such as hours of work, leave, holidays, wages, health and safety, etc. This act also provides for termination of employment of employees by employers on certain grounds and subject to certain conditions. The employees can approach the labour authorities or courts for redressal in case of illegal termination of employment.

·         **The Contract Labour (Regulation and Abolition) Act,

Conclusion

In conclusion, illegal termination of employment by MNCs is a serious issue that affects the rights and interests of many employees in India. The employees who face such termination have various legal remedies available to them under the relevant labour laws and regulations. However, the employees also have to be aware of their rights and responsibilities and follow the proper procedures and channels to seek redressal. Employers, on the other hand, have to comply with the applicable laws and regulations and respect the dignity and welfare of their employees. By doing so, both employers and employees can ensure a harmonious and productive employment relationship.