Is It Fair to Be Laid Off Due to Client Compliance Issues? Seeking Advice on Indian Labor Laws

I joined a new organization in August and was placed to work at a client's location. Now, they are relieving me by citing compliance issues with the client. The reasons also involve my previous organization. I had considered filing a petition involving both organizations, but before I proceed, I would like to seek advice on Indian labor laws and guidelines from you, as experts.

Is it Fair to Lay Off an Employee Without Their Mistake?

Is it fair to lay off an employee without their mistake or knowledge according to the law? If not, how can I proceed?

Dear Rakesh,

You have not specified the compliance issue that was with the client and your current and past company. The problem is very vaguely put across. You need to mention the entire scenario so that experts can provide their inputs and suggestions.

Regards,
Ashutosh Thakre

Thank you, Ashutosh, this is a background verification report. Actually, it is positive only. But according to the client, it should be submitted before I join or at least shortly after I join. However, my previous organization replied after 1 month, due to which the client's system is not accepting the report. It is none other than the current payroll company, Nityo Infotech, and the previous one is ManPower Group.

The client is American Express, and as they are very strict in security compliance, they have no other option. But how can Nityo release me? All of a sudden, I am jobless, and my family is facing problems. Please advise.

Dear Rakesh, This is a very company-specific technical issue. Try speaking with the company to see if they can shift you to another process not involving American Express. Unfortunately, through no fault of your own, you have lost the job. You can ask them for compensation for the notice period if they cannot shift you to another process. As the clause was already specified to you, there is not much you can do about it. Background verification is taken very seriously nowadays, and therefore, if they do not get it in time or receive negative feedback, it leads to the loss of the job.

My advice is to speak to the HR department of the company and ask for a transfer or shift to a different vertical or process. Meanwhile, start looking for a new job.

Regards,
Ashutosh Thakre

Thank you, Ashutosh! I am trying out for a new job. However, if I resign, they are asking me to serve the full notice period, or else pay a 50k penalty. I will take your inputs and move forward with HR. If they do not agree, I will contact the Labour Commissioner.