Legal Protections and Steps to Take if Terminated for Performance After Years of Service in India

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Here are the steps an employee can take and the safeguards that might apply:

1. Review the Employment Contract

  • Check Terms of Termination: The first step is to review the employment contract to understand the terms and conditions related to termination, performance reviews, and any related clauses.
  • Notice Period and Severance: Ensure that the employer has followed the notice period and severance pay requirements as specified in the contract or company policies.

2. Check for Unfair Dismissal Protections

  • Industrial Disputes Act, 1947: If the employee is categorized as a “workman” under this Act, they are protected against unfair dismissal. The Act requires that termination should be for a “reasonable cause,” and employers must follow proper procedures, including issuing notice and providing reasons for termination.
  • Retrenchment Compensation: If the termination amounts to retrenchment, the employer must provide retrenchment compensation (15 days’ average pay for every completed year of continuous service) and follow proper procedures.

3. Performance Improvement Plans (PIPs)

  • Challenge Unfair PIPs: If the employee was placed on a Performance Improvement Plan (PIP) as a pretext for termination, they may challenge the fairness and objectivity of the PIP, especially if it was implemented without clear criteria or in bad faith.
  • Document Performance: The employee should maintain records of their performance, any achievements, and communication with their supervisor to counter any claims of poor performance.

4. Consult with Human Resources (HR)

  • Internal Grievance Mechanism: Many companies have internal grievance mechanisms or appeal processes that can be utilized if the employee feels they have been unfairly terminated.
  • Seek Clarification: The employee can request a detailed explanation of the performance issues and the steps taken by the employer before deciding to terminate.

5. Approach Labor Authorities or Courts

  • Labor Commissioner: The employee can approach the Labor Commissioner to file a complaint of unfair dismissal or wrongful termination. The Labor Commissioner can mediate between the employee and employer.
  • Industrial Tribunal or Labor Court: If mediation fails, the employee can take the matter to an Industrial Tribunal or Labor Court, especially if they qualify as a workman under the Industrial Disputes Act. The tribunal can order reinstatement or compensation if the termination is found to be unjustified.
  • Civil Court: If the employee does not fall under the definition of a “workman,” they may approach a civil court for breach of contract if the termination violates the terms of the employment agreement.

6. Seek Legal Advice

  • Consult a Lawyer: It is advisable to consult a lawyer specializing in labor and employment law. They can provide guidance based on the specifics of the case and help in negotiating a settlement or filing a legal challenge.
  • Trade Unions: If the employee is a member of a trade union, the union can provide support and represent the employee in negotiations or disputes.

7. Look for Collective Bargaining Agreements

  • Check for Union Protections: If the workplace is unionized, the employee should review the collective bargaining agreement (CBA) for additional protections or procedures related to termination and performance issues.

8. Company Policies and Precedents

  • Inconsistencies: The employee should review if similar performance issues have been handled differently in the past with other employees. If there is inconsistency, it may indicate unfair treatment, which can be challenged legally.

9. Approach the National Human Rights Commission (NHRC)

  • For Extreme Cases: In cases where the termination is a result of discrimination or violation of human rights, the employee may consider approaching the NHRC.

10. Negotiate a Settlement

  • Severance Negotiation: If termination seems inevitable, the employee can negotiate a severance package, including additional compensation, extended health benefits, or outplacement services.

While these steps provide avenues to challenge an unfair termination, the specific actions an employee should take depend on the details of their employment situation, their job role, and the applicable laws.

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