Dear Amit,
This is in continuation of the foregoing comments of our friends. In India, the concept of employment at will has not yet been legally recognized. Therefore, the exit policy of any industrial organization for its employees, whether it be an MNC or a domestic enterprise should not run counter to the provisions of applicable labor laws or the Indian Contract Act,1872 as the case be in terms of unilateral implementation by the employer. Unfortunately, after the advent of LPG, most of the MNCs in India adopt the policy of hire and fire solely based on their market performance. Particularly such a practice is more rampant in the IT and ITES Sector where the work force comprises mostly of knowledge workers who have a high degree of employability in the employment market in terms of age and expertise. Therefore, even large scale reduction in the manpower of such industries simply go unnoticed and even uncomplained of by the affected employees themselves. Why do MNCs thrust such seemingly voluntary resignation on the part of its specific type or selected group of employees alone on the pretext of manpower reduction instead of coming out with a transparent VR Scheme always remains an unasked question. It is only because of the restrictions imposed by the Income Tax Act u/s 10(10C) by means of the guide lines set down in rule 2-BA. In respect of employees to whom labor law like the ID Act,1947 is not applicable, the managements would cite the exit clause of the contract of employment which would normally contain a notice period of maximum three months or equivalent amount of salary in lieu thereof on either side and threaten them to put down their papers. But such an exit clause if adopted by the employer without a reasonable cause would be " opposed to public policy " under the Indian Contract Act,1872 and liable to be struck down as per the judgment of the Supreme Court in Central Inland Water Transport Corporation Ltd vs. Brojo Nath Ganguly & Another [ 1986 (2) LLJ 171 SC ]. Therefore, in this precarious situation of forced exit, you can legally resist it provided you have the wherewithal, courage and patience.