Introduction
Wrongful termination or wrongful dismissal is an act of terminating the employment of an employee without any proper cause and against the terms and conditions of the employment contract. This can lead to a negative impact on the career of the employee as well as his reputation. This also breaches the principle of natural justice which is “audi alteram partem”, which means everyone should be heard.
Provision governing the act of wrongful termination
There are different statutes which enumerate the provisions for governing the act of wrongful termination. The Industrial Dispute Act, 1947, The Indian Contract Act, 1872 and the Shops and establishments act. The Industrial Disputes Act, prohibits the employers from altering conditions of services including dismissal from service, during the pendency of an industrial dispute. The Indian Contract Act, 1872 governs all types of contracts and also prohibits breach of contract. Wrongful termination by an employer without proper cause is a breach of the employment contract which comes under the jurisdiction of Indian Contract Act, 1872. The provisions of shops and establishments act varies from state to state and as per the West Bengal Shops and Establishes Act Section 15, any employee working in shop or an establishment with a service of not less than one year cannot be terminated without any cause, the employer should give a one month notice giving the reasons for the termination.
Hence the Industrial Dispute Act, 1947, Indian Contract Act, 1872 and Shops and Establishment Act, governs the framework for dealing with the matters relating to wrongful termination.
Legal remedies for wrongful termination
In case of a wrongful termination the employee can send a legal notice to the employer for breaching his right under the Industrial Dispute Act, or Shops and Establishment Act, as well as he can send a legal notice for breach of contract under the Indian Contract Act, for breaching the terms of the employment contract. Further if the employer ignores the legal notice then the employee can approach the labor court for taking legal action against the organization. The remedies for wrongful termination are;
Reinstatement
Compensation
Back Pay
In certain cases, punitive damages
Conclusion
Hence it can be concluded that in India there are various statutes for the protection of the employee from the wrongful termination. The Industrial Dispute Act, Indian Contract Act and the Shops and Establishments Act, creates the framework for governing the rules related to termination and also provides remedies for employees who face wrongful termination.