In the Indian context, termination of employment usually has to be for a reasonable cause, which means that an employer must have a justifiable reason for the termination, and does not have unbridled discretion. The three most common reasons for termination of employment in India are – (a) redundancy, (b) performance issues, and (c) misconduct.
What the courts have said? A restructuring exercise can often lead to roles within the organisation becoming redundant. Where the employer has sound commercial reasons, courts have held this to be a reasonable cause for termination.
What is the process to follow?
For workmen: The process to be followed in a redundancy termination depends largely on whether the employee in question is a 'workman' under the Industrial Disputes Act, 1947 (ID Act) which defines a 'workman' as a person engaged to perform manual, unskilled, skilled, technical, operational, clerical or supervisory work, and specifically excludes (a...
Read full story