Wrongful termination of employee


Overview

White-collar jobs are majorly concentrated in Indian metros such as Bengaluru, Delhi, Mumbai, Kolkata, and Chennai, creating the maximum employment opportunities. Mumbai, Delhi, and Bangalore have emerged as the top three Indian cities in terms of generating white-collar jobs with the financial capital of the country alone, accounting for 28% of the new employment opportunities. Now even tier 2 cities such as Pune, Jaipur, Lucknow, etc are also emerging as cities that provide a plethora of white-collar jobs. An Employment Contract is a legal document that outlines the terms of employment agreed between an employer and an employee. This document acts as a ground norm; it specifies the rights and duties of both employer and employee. This document can be used in case the employer is trying to coerce any work which the employees are not obliged to do and facilitate any claims or rights which the employee may have against the employer.

Benefits

The essential benefits of having an employment agreement includes accurate details of the position offered, reference to the job title, primary duties, and responsibilities of role offered to the employee. Furthermore, the agreement can stipulate the details of salary, the duration of employment, whether it is permanent or for a fixed period or on a probationary basis. Apart from the job information, an agreement may include the details of any benefits such as holiday entitlement, pension, bonuses, health insurance plans. 

The agreement includes the obvious restrictions such as covenants or a non-compete agreement, stating the employee cannot work for a competitor or start a competing business within a specified time frame, if necessary, grounds for termination and confidentiality guidelines

Important Points

The employment contract governs the legal relationship, and employees are left with no bargaining power, which leaves it to be decided at the complete discretion of the employer. In the absence of specific legislation for rules governing white-collar employees, the lack of an employment agreement can severely impair employee interest. Hence, it is always advisable to have an agreement to identify the specifics of employment engagement. 

 

Procedure

Procedure for termination of employee

Frequently Asked Questions

Whether Non-Compete restriction is identified under the statute in India?

Yes, Article 19(1) (g), which confers on every citizen the fundamental right to carry any trade and Section 27 of the Indian Contract Act, 1872 prohibits the inclusion of restrictions in contracts. 

What are the essential contents of an employment agreement?

  • Name of Employer and Employee 
  • Start Date of employment
  • Address of employment
  • Job title and description
  • Cost to the Company
  • Leaves and Holidays
  • Probationary Period (if any)
  • Duration of employment
  • Confidentiality and Non-Disclosure
  • Termination 

In what situations can an employment contract be terminated?

  • Inefficiency
  • Violation of confidentiality
  • Breach of employment contract
  • Professional misconduct

 

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