It's unlawful, but it differs based on the service and varies by state. Please refer to your state shop act. For example, in the Delhi Shop Act, Section 30 states that if an employee has completed three months of service, notice shall be required (one month) for termination, only in reasonable cause.
I am not aware of the Delhi Shops and Establishments Act. However, as per my knowledge, if an employee is provided an offer (an appointment letter is stronger than an offer), he/she cannot be terminated all of a sudden. It is a lengthy process, wherein you need to seek guidance from a legal practitioner. Labor laws protect the welfare of employees against possible exploitation by employers.
Normally, the letter of appointment contains a clause detailing how the contract of service can be terminated, either by the employer or by the employee. Even in the absence of such a clause in the letter of appointment, the Shops Act of the states concerned contains provisions regarding notice of termination. Please verify the Shops Act of your state in this regard.
Regards,
B. Saikumar
Mumbai
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