Is AT-WILL Employment Practiced In India

Is it legally allowed to practice at- will employment in India.?
Is it practiced anywhere in India?

Dear Ms. Avantika1909,

India has not come to a legal stature yet for the employers to employ the individuals on an "at-will" basis. Predominant in countries where "at-will" - meaning employers or employees can terminate their professional relationship at any time without any reason or concern, The company's that follow "at-will" basically, puts up in the terms of contract or appointment given to the employee -- Infact an open circumstance as thsi policy becomes unavoidable, employees would also be well aware of the company's course of action & vice-versa.

"At-will" is a policy documented for any legal reasons yet to terminations that are made wittingly. There is a procedure to this which goes as paper trail where a wriiten letter/documentation should be done between the employer-employee (joining until termination basis).

Indian employees haven't fallen prey to this acute policies and hoping the other set-backs in the companies wouldn't let the employee go through such a painful procedure.

Thanks Sharmila!!
If the termination clause mentioned in the offer letter / appointment letter/ any agreement document says that employee or employer can terminate the relationship at any time, will it be valid or will it be a against existing laws and a void agreement
Regards
avantika

Dear Ms Sharmila,
Recently my company-a Central PSU deeply in red- sent a circular from Director(Personnel) to all Regional Directors asnd Strategic Business Heads asking for a list of all such employees who have attained age of 55yrs and cited a clause in the Letter of Appointment stating that the management can retire an employee after his attaining 55yrs age without any reason.This clause has never been invoked before in organisation's 57yrs history.Can it be done now ? Can it be challenged in the court ?

Avantika:
Under Indian employment laws, ability to terminate emloyee is NOT at will. Obviously to that extent the at will termination will be inconsistent with laws and thus infructuous.
However if contract grants a right to employee to resign at will without notice, it will stay. There no legal requirement to give notice or pay in lieu thereof prior to separation -unless stated in the contract.
Essentially labour laws in India are a social piece of legislation designed to protect weak, individual and naive employees against mighty, rich and clever emplyers! And not vice versa :-)
You may like to consider if unilateral at will is a happy state for your organization.
Cheers

Saibhakta:
You may like to study concept of 'notice of change' under Industrial Disputes Act 1947. Hopefuly, that will clear your doubts...
Cheers

Dear.,

Ms. Avantika: Indian laws provide immunity against such arbitrary acts of termination at will (the infamous Henry VIII clause), provided the workman has completed 240 days of service. The Industrial Disputes 1947 terms such termination of service as 'retrenchment' and the consequence is that the employee comes back with all the attendant benefits. This is as regards workman category is concerned, however the services of executive class (Gold Collared as termed by the Supreme Court) can be dispensed with as per such service condition mutually agreed.

Mr. Saibhakta: The Management can retire an employee after he completes the 55 years of age where the rules provide for review of performance of the employee and for reasons to be recorded in writing, if the services of the employee concerned are not satisfactory. The courts have upheld such action so long as cutting the deadwood is in organisational interest, however if it is tainted by arbitrariness, malice, bias or prejudice, the courts have set aside such action. As such this rule is widely prevalent in many PSUs, they should frame proper rules regarding exercising such a right. The clause in the appointment letter that an employee can be retired from service after he attains 55 years of age without any reason does not mean that any body can be terminated just like that. Such actions would be arbitrary and the court's won't hesitate a bit in striking down that action.

KK