Wrongful Termination: Rights of Employees & Duties of Employers

What does “wrongful termination” mean in India?

Wrongful termination occurs when an employee is removed from his job in an illegal or unfair manner, such as:

• Without notice or valid reason.
• In violation of the employment contract.
• Due to discrimination (gender, caste, disability, pregnancy, etc.).
• As punishment for filing a complaint (about harassment, safety, or discrimination).
• Without following the required legal process.

Type of Wrongful Termination in India

Discrimination-based termination

Firing someone because of a protected characteristic can be unlawful. Key protections include:

• Pregnancy/Maternity: Termination during maternity leave is prohibited the Maternity Benefit Act, 1961.
• Disability: Under the Rights of Persons with Disabilities Act, an employee cannot be terminated just because they have a disability.
• Transgender status: The Transgender Persons (Protection of Rights) Act prohibits discrimination in employment, including unfair termination.
• HIV status:The HIV/AIDS (Prevention and Control) Act outlaws employment discrimination (including termination) on HIV-related grounds.

Retaliation (Revenge Firing) based termination

Retaliation (Revenge Firing) termination means fire an employee just because they raised their voice against wrongdoing.

Example: If an employee files a sexual harassment complaint under the POSH Act and is later terminated as revenge, it is wrongful termination.

Victimisation based termination

Employee Termination employees for reporting unlawful practices, illegal activities (whistleblowing), workplace harassment, or unsafe working conditions. This is often called victimisation.

Constructive/ Forced termination

When working conditions become so hostile or unfair that an employee is forced to resign, it may amount to constructive dismissal. For Example: An employee who reports wage irregularities and is then deliberately assigned impossible tasks or harassed until resignation.

Breach of Employment Contract

Most employment in India is contract-based. Employers cannot terminate employees in violation of:

• Contractual notice period requirements
• Specific grounds mentioned in appointment letters
• Collective bargaining agreements or standing orders

Violation of Labour Laws and Public Policy

Employers must comply with labour statutes such as the Industrial Disputes Act, 1947, Shops and Establishments Acts, and standing orders. Termination without proper inquiry, without notice, or for refusing to perform illegal acts (such as falsifying records) is unlawful.

For Employers: Compliance checklist before any termination

• Classify the role correctly - Determine whether the employee is a workman or managerial/supervisory, This dictates process and remedies.
• Choose the correct route - To avoid legal trouble, employers should strictly follow Section 25F (notice, compensation, salary, intimation). For larger industrial establishments, employers should follows labour laws and state Shops & Establishments rules.
• Misconduct- Issue a charge sheet, run a domestic enquiry observing natural justice (reasonable opportunity, unbiased Enquiry Officer, reasoned findings), and issue written order reasons for termination.
• Full & final- Clear all dues like (earned wages, leave encashment), salary, leave encashment, gratuity, PF, service/experience and relieving letters etc. as per law

For Employees: What to do if you’re wrongly terminated

• Collect paperwork and evidence - Ask for a termination letter, reasons, F&F statement, relieving/experience letters. Save emails, chats, appraisal records.
• Check your job type: If your work is mainly manual or technical, you may be treated as a “workman.” You can complain to the Labour court/ Labour Commissioner if you are wrongly removed. If the case goes further and the decision is in your favour, you may get your job back with pending salary.
• But If you’re managerial/supervisory (non-workman), your case will be file civil suit/arbitration in Civil court. Courts carefully examine whether due process was followed before termination, if employee wrongfully terminated he may claim Reinstatement with back wages, Compensation for loss of income and benefits, and Damages for mental harassment or discrimination
• Notice Period rights - If you work in Delhi Haryana NCR and have completed more than 3 months in the job, your employer must give you 1 month’s notice or salary in place of notice—unless you were removed for proven misconduct.

How SPJ Advocates can help (Employees and Employers)

• For Employers: We guide you on how to end employment legally and fairly. Our team prepares proper termination procedures, conducts enquiries in misconduct cases, handles staff downsizing under Section 25F/25N of the Industrial Disputes Act, and checks your POSH and whistleblower systems to reduce the risk of disputes or lawsuits.
• For Employees: We carefully study your employment case to see if your termination violated any laws, such as retrenchment rules under the Industrial Disputes Act, Delhi/Haryana/UP Shops & Establishments notice requirements, maternity rights, or anti-discrimination laws. We also calculate what you are owed—like notice pay, retrenchment compensation, or back wages—and take quick action before the right authority to protect your rights.