Termination of employment during Covid 19 lockdown Termination of employment during Covid 19 lockdown

3 years ago

Is the force majeure clause applicable and justified for termination of an employee

Abhimanyu Shandilya

Responded 3 years ago

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A.It depends on how the Force Majeure clause is drafted and how termination is linked to it.

Broadly, whenever a situation like this (COVID -19) appears then most of the commercial organization end up firing employees for a simple reason that they cannot financially support so many employees. And if they have drafted the employment agreement in a manner which provides them ample opportunity to terminate then they have upper hand to do it.

Since private jobs are basically contract between the employer and employees who are bound by the terms and agreement so, the employer is free to do whatever is agreed for in the agreement.

There has been lot of false hopes risen due to a suggestion or request by the Central government asking the employers not to deduct the salary or terminate due to Corona situation. But that is not the law and one has to understand this.

Interestingly someone has filed a PIL in Supreme Court about it and the Hon'ble Court is also taking a view that the employers should not be coerced to pay when they do not have the financial strength to pay.

So, in case of private organization there is not much to do bu the case would be different if some one is terminated from a government job.
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Adv. Sarika Khude

Responded 3 years ago

A.It is not apllicable.
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Ayantika Mondal @ Prime Legal

Responded 3 years ago

A.FM is not applicable-

Different sections of people are impacted by the pandemic situations of covid/19. The employees losing their job or no earning for gig workers and billions of dollar companies are downsizing without giving a second thought of their livelihood.

Remedies available for such wrongful and illegal termination/ cessation of employment/ lay off during COVID 19 under the law are:-

A. Such layoffs don't fall within the ambit of the act and it is illegal.

B. Such illegal act of the companies needs to address legally, such as issuing a legal notice, filing a necessary complaint before jurisdictional labor inspector, and thereafter ID court for reinstatement and back wages.
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Kishan Dutt Kalaskar

Responded 3 years ago

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A.No, Central government through its Labour Department issued strict circulars. You can have the same from me.
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