Unjust Termination Without Notice: How Can I Take Legal Action Against My Employer?

To file a case against employers in the labor court, you need to follow the proper procedure. I have been working at a private limited company for the past 5.5 years, but recently, the company terminated me without any prior notice or reason.

I would like to seek guidance on how to take legal action against this unjust termination. Your assistance in understanding the necessary steps to address this issue would be greatly appreciated.

Section 2A of the Industrial Disputes Act, 1947

Section 2A of the Industrial Disputes Act, 1947 provides that where any employer terminates the services of an individual workman, such termination shall be deemed to be an industrial dispute notwithstanding that no workman nor any union of workmen is a party to the dispute. The individual is free to file an application directly before the Labor Court, but such application shall be made within a period of three years from the date of termination, discharge, dismissal, or retrenchment, as the case may be.

Regards, BS Kalsi

Principle of Natural Justice in Termination

Irrespective of looking at this matter from the viewpoint of senior-level designations such as MD, CEO, ED, etc., you should follow the principle of natural justice. If any employee has misbehaved with anyone, they are subject to termination, but only after following the legal procedure. You cannot directly issue a termination letter to any employee unless you issue them a Show Cause Notice (SCN) and ask for a written explanation of the exact reason for their misbehavior.

Additionally, a domestic inquiry should be conducted before the termination of any employee. If the inquiry proves guilt, then termination is valid; otherwise, it is not. Illegal termination may lead to disputes under Section 2A of the ID Act.

Thanks & Regards,

Devesh Chauhan Practicing in Accounts, Finance, Taxation & Labour Laws

Challenging Termination Without Notice

As for termination without any notice or reason, it needs to be challenged before the Court of Law. The concerned employee should establish that they were an employee of such an organization by providing suitable documents. The employee should approach the Local Labor Department Authority, i.e., the Labour Officer, by filing a suitable complaint. Conciliation on the said complaint should be completed within 45 days from the date of filing. If the conciliation is not concluded within the stipulated 45 days, the worker may approach the Labour Court/Tribunal directly through an advocate for an appropriate remedy. In such an event, the employer may opt for an amicable settlement.

Regarding Sunitha Roy's Case

If the termination letter issued to the employee narrates the incident as the reason for the direct termination, there would be an opportunity for the employer to prove the same before the court of law by providing evidence. A mere termination letter issued to the employee may not be a valid document justifying the termination. If the termination is challenged by the employee, it will be challenging for the employer to contest the case before the court, and the employee may succeed. As there is an indication that the employee has not shown up for the last 2-3 months, it seems the employee may be preparing to start a legal battle over this termination, potentially influenced by external factors guiding terminated employees.