Under the Industrial Disputes Act of 1947, employers cannot terminate workers who have been in continuous service for at least one year. Without following specific legal procedures, Section 25F of the Industrial Dispute Act, of 1947 requires employers to give workers at least one month’s written notice with details of reasons for retreating and upon termination of employment. Employers are required to pay workers compensation equal to fifteen days’ average wages for each full year of work. And notify the appropriate government agency as required by law to ensure all procedural requirements are met before termination.
Where an establishment has more than 100 employees, additional provisions under section 25N of the Industrial Dispute Act,1947, will apply, requiring the employer to obtain permission from the government before dismissing any worker. The purpose of this provision is to protect employees from arbitrary termination and to ensure that any dismissal decision is fair and legal. If these conditions are not followed, the termination will be considered illegal, and affected employees may seek reinstatement or legal compensation through the appropriate labor court.
