In the era of globalization, the growing interdependence of
world economies, cultures, and technologies have brought about an
increase in the trade of goods and services, investments, people,
and information.
Most business transactions involve intense negotiations,
followed by the execution of a contract wherein, the respective
parties agree to abide by certain terms and conditions for the
successful completion of the said business transaction. However,
failure to consider the relevant statutory provisions in contracts
can result in unwarranted litigation.
Recently, General Motors India Private Limited had to bear the
brunt of compensating its employees to the tune of 50% of their
monthly salary, on account of terminating them as per their
employment agreement which were not in consonance with the
provision of the Industrial Disputes Act 19471.
