Rights and Remedies for Illegally Terminated Employees in India: Damages, Reinstatement, and Jurisdiction

The legal system in India depicts the difference between the words “worker” and “employee.” Due to this, the rules, regulations and recourse that apply to situations of unlawful or illegal termination might vary greatly. This blog will explore the legal process which involves cases of unlawful dismissal, the relief available to workers and employees, and the special law which governs termination.

Jurisdiction for Employment Disputes

The jurisdiction for employment dispute cases depends on the type of right that was infringed. For example, in cases of wrongful termination where the gratuity is wrongfully forfeited, the appropriate forum for resolving this matter will be the one established under the gratuity regulations.

In determining the correct jurisdiction, the Apex Court has held that:

• For an industrial dispute: If the dispute relates to discharge, dismissal, or retrenchment of workers, and the remedy sought is under industrial law, industrial tribunals shall have jurisdiction.
• For non-industrial disputes, civil courts may have jurisdiction.

The term “industrial dispute” refers to disputes arising from the termination or discharge of workers.

Reinstatement and Specific Performance in Employment Contracts

Under the Specific Relief Act of 1963, employees who face illegal termination cannot demand the specific performance of their contract for reinstatement in the case of private employment. The law holds that:

• Employment contracts are considered personal service agreements.
• Notice periods for termination are often predetermined in the contract, and reinstatement cannot be demanded.

However, workers have different rights. Industrial law permits industrial tribunals to:

• Award reinstatement in the case of wrongful dismissal.
• Grant compensation in addition to or in lieu of reinstatement.

For workers, the termination order will be set aside if it does not follow proper cause or if the employer’s inquiry is deemed unfair.

Damages for Wrongful Termination

• Courts apply the principle of mitigation of damages under Section 73 of the Indian Contract Act, 1872 in wrongful termination cases.
• The amount of compensation depends on:
  • Terms of the employment contract
  • Specific particulars of the case.
• In the case of S.S. Shetty v. Bharat Nidhi Ltd., the Supreme Court stated that:

• If the employment contract requires a one-month notice period then compensation is basically limited to one month’s salary. 
• Additional compensation for unemployment beyond that notice period was denied.
• For workmen, the extent of damages depends on:
  • Whether the employee is provided compensation instead of getting their job back.
  • The reason of termination can be misconduct like misappropriation, regular absence or any procedural or legal mistakes in the dismissal process

Key principle: It is expected that employees must make reasonable efforts to reduce the losses like  seeking alternative employment.

Conclusion

For employees who work in private-sector, the usual relief for unlawful termination is limited to the salary for the notice period as stated in their contract. Additional compensation is not typically available unless the contract specifically allows for it.

For workers, if they are dismissed without any reasonable cause, they may have the right to either get back to their join on same position or receive compensation, depending on the situation and whether the employer followed a fair process.

If you are dealing with any type of unfair dismissal or trying to claim damages, then it is essential to consult an expert legal professional or lawyer who will assist you with the best course of action and helps you to understand your rights.

One can talk to a lawyer from Lead India for any kind of legal support. In India, free legal advice online can be obtained at Lead India. Along with receiving free legal advice online, one can also ask questions to the experts online free through Lead India.

FAQs

1. What are the remedies for illegally terminated employees in India?

Employees may seek compensation or damages for wrongful termination. In some cases, reinstatement may be possible for workers under industrial law.

2. Can I claim damages for wrongful termination?

Yes, employees can claim damages for wrongful termination based on their contract’s notice period, as per Indian Contract Act, 1872, or under industrial law for workers.

3. How do I approach a tribunal for wrongful termination?

Workers can file a complaint with the industrial tribunal if their termination was unjust. Private employees may approach the civil court depending on the terms of their employment contract.

4. Is reinstatement possible in case of wrongful termination?

Reinstatement is available primarily for workers under industrial law, but private employees are generally entitled only to damages based on their employment contract’s terms.