An employee challenge the organization for his/her termination due to restructuring or business downsizing? Is there any case study on a similar case where an employee has legally questioned why me and not another employee from my department?
Can an employee challenge the organization for his/her termination due to restructuring or business downsizing? Is there any case study on a similar case where an employee has questioned legally why me and why not another employee from my department?
From India, Mumbai
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Can an employee challenge the organization for his/her termination due to restructuring or business downsizing? Is there any case study on a similar case where an employee has questioned legally why me and why not another employee from my department?
From India, Mumbai
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Dear friend,
The decision of the employer styled as "Downsizing," "Rightsizing," or "Structural restructuring," or by any other term, is nothing but the consequential forced and involuntary exit or unemployment of a certain number of existing employees in the organization for no fault of their own. The Industrial Disputes Act, 1947, calls it "retrenchment" and defines it under section 2(oo) in relation to the particular category of employees falling within the definition of the term "workman" under section 2(s) and imposes certain restrictions in favor of the employees under sections 25-F and 25-N.
As for other employees, it is the consequential violation of the service regulations, if any applicable, or the breach of the terms of the contract of employment that can empower the individual employee to legally challenge such involuntary termination. The question of comparison would arise only when the employer adopts the tactics of picking and choosing by retaining juniors and letting seniors go, or for fabricated reasons. It is advisable to search websites like indiakanoon.org for relevant case laws.
From India, Salem
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6108The decision of the employer styled as "Downsizing," "Rightsizing," or "Structural restructuring," or by any other term, is nothing but the consequential forced and involuntary exit or unemployment of a certain number of existing employees in the organization for no fault of their own. The Industrial Disputes Act, 1947, calls it "retrenchment" and defines it under section 2(oo) in relation to the particular category of employees falling within the definition of the term "workman" under section 2(s) and imposes certain restrictions in favor of the employees under sections 25-F and 25-N.
As for other employees, it is the consequential violation of the service regulations, if any applicable, or the breach of the terms of the contract of employment that can empower the individual employee to legally challenge such involuntary termination. The question of comparison would arise only when the employer adopts the tactics of picking and choosing by retaining juniors and letting seniors go, or for fabricated reasons. It is advisable to search websites like indiakanoon.org for relevant case laws.
From India, Salem
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Dear friend,
The termination, whether legal or illegal, is difficult to ascertain based on your two-line posting. However, the aggrieved employee is free to challenge his termination before the labor authority if it is considered illegal under the ID Act. The appropriate authority would determine the legality, illegality, or justification of the termination. Your claim of "Business Downsizing," whether it complies with the ID Act or was done after obtaining permission from the appropriate authority, will be the deciding factor in the case.
From India, Mumbai
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The termination, whether legal or illegal, is difficult to ascertain based on your two-line posting. However, the aggrieved employee is free to challenge his termination before the labor authority if it is considered illegal under the ID Act. The appropriate authority would determine the legality, illegality, or justification of the termination. Your claim of "Business Downsizing," whether it complies with the ID Act or was done after obtaining permission from the appropriate authority, will be the deciding factor in the case.
From India, Mumbai
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Legal Clarification on Non-Performer Termination, Project Based Appointment Letter, Setting UP .pdf