Mandatory Requirements For Retrenchment Under Employment Laws In India

It is common for corporates to carry out termination of employees who do not meet their performance requirements, or are found wanting in their conduct or are incapable of working in teams. HR units often act in a rush thinking all they have to do is to invoke the terms of the employment contract regarding termination. Not surprisingly, terminations are carried out with little or no idea of the requirements of the governing legislations in India. This is even more typical in the case of subsidiaries of foreign companies who often overlook that employment laws in India are based on legislations which override contractual terms of employment. This memo aims to highlight that the issue of termination simpliciter is a tricky business, and the prevailing impression that it is a simple case of hire and fire, is flawed and fraught with legal implications. The governing legislations have mandatory provisions for notice for termination of workmen, or employees who are