In the recent past, several Indian courts have upheld termination simpliciter if such termination is consistent with the terms of the employment contract and is non-stigmatic. Increasingly, a wider acceptance of termination of employment is evident in cases where it is for non-performance and non-stigmatic, and backed with proper documentation and evidence in respect of the termination.
Employers are often exposed to a series of legal and reputational risks resulting from wrongful termination, or for not following due process established under law. Therefore, it is incumbent, from an employer’s perspective, to carefully construct employment contracts and the relevant human resource materials, and thereby ensure that senior management, human resource personnel, and employees are fully apprised of their rights and responsibilities. Then, should reason for termination arise, all processes under law and applicable contracts will have been followed and given effect to and, above all, in an amicable manner.
Please click here to read the full article by Gerald Manoharan & Sonakshi Das published in ET HR World.
Gerald (Jerry) has over 20 years of experience as a corporate commercial lawyer and has worked with several clients on diverse matters, including investments, corporate advisory, restructuring, mergers and acquisitions, contracting, dispute advisory and real estate.