Legal Counsel
Hr Consultant

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Dear All,
This is a very sensitive topic. There are many companies, primarily IT companies ,letting go of their employees thru' many methods.
One method is to induce the exit. The employee is told to resign and the exit process happens as a normal part of the process.
However, I would like to know if there are any legal aspects in the Indian Legal System that must be complied with before releasing these employees.
A person who is induced to resign can approach the labor court and claim that the release was induced/ under duress. Damages will then have to be paid by the employer.
What does one do as managers we are asked by our higher ups to ask placement agencies to discreetly place some employees elsewhere?Does this not effect the employer brand? Are there legal aspects that must be carefully studied before undertaking these activities?
Please share your thoughts.

Dear Saikiran
Because one exit leads to another entry & security of Employment is not a criteria any more all this happens.
If the Employee challenges the exit Corporates may land in Legal Soup. Till then everything appears to be smooth.
When recession is there & people cannot move easily the situation may change.
With Regards
V.Sounder Rajan

E-mail :

Thank you Sir for your response. I am still unclear of what is the best practice in dealing with these cases. Also what Acts are applicable and are there any case laws. Regards, Saikiran
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