Can an employee challenge the organization for his/her termination due to restructuring or business downsizing? - CiteHR
Umakanthan53
Labour Law & Hr Consultant
Bharat Gera
Principal Hr Consultant

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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 similar case where employee has questioned legally why me and why not other employee from my department?
Dear friend,
The decision of the employer styled as " Down sizing", " Right sizing", " Structural restructuring" or by any other term is nothing but the consequential forced and involuntary exit or unemployment of a certain no of existing employees in the organization for no fault of them. The Industrial Disputes Act,1947 calls it as " retrenchment " and defines it u/s 2(oo) in relation to the particular category of employees falling within the definition of the term " workman "u/s 2(s) and imposes certain restrictions in favour of the employees under sections 25-F and 25-N. As regards 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 only can empower the individual employee to agitate legally against such involuntary termination. The question of comparison would arise only when the employer adopts the tactics of pick and choose by keeping the juniors in and sending the senior out or for feigned reasons. Better search web-sites like India kanoon .org for case laws.

Dear friend,
The termination is legal or illegal is difficult to say on strength of your two line posting.
But the agrived employee is free to challenge his termination before the labour authority considering illegal under ID Act .
The appropriate authority would decide whether the termination is legal or illegal or justified. Your plea of " Business Down sizing" whether is as per the ID Act or done after obtaining permission from appropriate authority shall be the deciding factor in the case.

Dear Friends,
I am adding one more term to what Mr Umakanthan has mentioned, it is called employee optimisation.
Warm Regards
Bharat Gera

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