dear vidya,
the company can't simply terminate the service without strong reason. althogh in the disciplinary ground, the proper inquiry must be conducted. it must be based on bona-fide and not mala-fide to ensure the natural justice and fairness.
in your case, i found the reason is to cut peartional cost. the cost for operation is incluidng the labor cost. if the company need to cut the labor cost they can't simply fired the staff.
1. the company must cut the non-productive cost 1st such as the luxury expenses.
2. terminate the service of foreign worker or contract staff.
3. apply the LIFO system. last in first out.
4. identifiy which department to eliminate (job reducdancy) adn transfer the staff to other department to utilize the manpower capacity.
5. do Mutual Separation Scheme or Volunteer Separation Scheme.
thanks.