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Ramesh (journalist)     22 February 2010


Hi, One of my friend employed in a fortune 10 MNC in the BPO division. He has been working there for more than 8 years now and he has been given a date to leave in the next 60 days. He was not given any reason for any non or poor performance. His past year performance was adjudged as Strong performance. In what ground he/she can be asked leave? will that be right? if they forcefully make the exit, is there any provision in the labour law to challenge the decision in the court?


 5 Replies

Sarjooram Sharma (Assistant Labour commissioner)     22 February 2010

You can file a case before conciliation board before the company retrenches you. If the proceedings initiated, Section 9 of the Industrial Disputes Act 1947 will be applicable and it will not be so easy to retrench you.

Ramesh (journalist)     23 February 2010

Hi Sharma, Thank you for your inputs and expert advice. Can you also please clarify few more questions?

- The filing to be done before the retrenchment as you mentioned, but will that be possible to do after the termination to seek compensation?

- Will that be possible to terminate any person based on relative performance issues without providing the necessary support and guidance?


Sarjooram Sharma (Assistant Labour commissioner)     23 February 2010

Case is matured after terminaton. But in case the termination is apprehended, you can also file the case.

The employer should not terminate any employee without following provision of relevant provisions of Industrial Disputes Act. But if the employer does so, the legal course can be adopted.

H. S. Thukral (Lawyer)     24 February 2010

You get protection only if you are a workman as defined in the ID Act. You have been terminated by giving notice and therefore cause of action has arisen in your favour. If you are a workman raise an industrial dispute  asking for reinstatement in service and if not a workman issue a legal notice to the employer citing it as illegal termination and afterward file a suit for declaration and compensation. There is no relief such as stay on the dismissal termination in private employment.

Mr. Sharma :

Section 9 has no application in the case. Section 9 comes into operation when employer has to change any of  service condition mentioned in fourth schedule to the Act and gives 21 days notice for the same. Workmen can raise an industrial dispute by taking the matter to the conciliation officer during this period. Then section 33 comes into play and employer is obliged to maintain status quo in respect to matters connected with the pending dispute. There is no such eventuality  in the listed query . 

I am sorry of contradicting you as you are working as ALC with vast knowledge of labour laws but discussions give us more knowledge. 

ranjan (software engineer)     24 February 2010

Hi Ramesh

     It is true that these MNCs will do hire and fire completely disragarding the laws of the land.

As for ur question company can not terminate without giving any reason it is against the i.d act.. very first thing u have to do is check whether u come under the definition of work man under i.d act based on ur nature of work. i suggest u to buy simple i.d act book in which workman definition given, with examples. only one useful tip i can give  : please note salary or  designation is not the criteria for deciding person is workman or not?    Don't give resignation letter if company forces u to give in this kind of situation.

   if company terminates ur service without giving any reason then u have to file case under section 10(4)A for illegal termination as they have to justify their action otherwise court will declare that termination is illegal then company will have to compensate u for ur loss.




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