Court Finds Lack of Proper Procedure and Communication in Termination Process; Upholds Employee's Right to Fair Working Conditions
In a significant ruling, the Madras High Court has directed Cognizant Technology Solutions India Pvt. Ltd. to reinstate an employee who was found to have been terminated illegally. The court's decision came after it was revealed that the employee, Mr. K.N. Naresh, was dismissed without proper communication or adherence to the principles of natural justice.
The case arose when Mr. Naresh, who had been with the company since 2000, alleged that he was orally terminated without formal notice and that his access to the workplace was blocked without explanation. He had filed an appeal under Section 41 of the Tamil Nadu Shops and Establishments Act, 1947, seeking reinstatement and back wages.
The court found that the management failed to conduct a formal inquiry into the allegations of poor performance and unauthorized absence, which were cited as reasons for termination. Moreover, the termination order dated June 6, 2018, was not properly communicated to Mr. Naresh, as it was neither served personally nor sent via registered post with acknowledgment, as required by the rules.
Justice D. Bharatha Chakravarthy, presiding over the case, highlighted the lack of empathetic handling by the management and condemned the use of security systems to block employee access as a means of termination. He emphasized that such actions violate the right to fair working conditions and dignity of labor, as protected under Article 23(1) of the Universal Declaration of Human Rights and the Protection of Human Rights Act, 1993.
The court dismissed the writ petition filed by Cognizant, upholding the appellate authority's decision to reinstate Mr. Naresh with back wages. The judgment serves as a reminder to companies about the importance of adhering to fair employment practices and the legal consequences of failing to do so.
Bottom Line:
Termination of employment must adhere to principles of natural justice, including proper communication of the termination order and conducting an inquiry. Blocking access to the workplace without formal communication constitutes a violation of fair employment practices.
Statutory provision(s): Tamil Nadu Shops and Establishments Act, 1947 Section 41, Protection of Human Rights Act, 1993 Section 2(d), Article 23(1) of the Universal Declaration of Human Rights, Article 226 of the Constitution of India.
