A.
Dear Client,
A termination or dismissal from service other than a disciplinary action for proven misconduct amounts to illegal termination/ retrenchment and is defined as an industrial dispute under Section 2A of the Industrial Dispute Act, 1947 which also violated the mandatory provision of Sec.25F and 25N of the I D Act that prescribed certain conditions to comply with by the employer before termination/retrenchment of a workman/employee from the employment. In that scenario, the terminated employee/workman serving a legal notice to the employer can raise an industrial dispute directly before the Industrial Tribunal/Labor Court concerned for adjudication under Section 2A of the I D Act seeking reinstatement with back wages, provided he/she is not holding the position of Manager/Supervisor but a workman as defined u/s.2(s) of the Industrial Dispute Act. The validity of Employment bonds can be challenged based on Section 27 of the Indian Contract Act,1872, which prohibits any agreement in restraint of trade and profession. The law states that an agreement (employment bond) will be illegal only if it restrains someone from exercising a lawful profession/ trade/ business. Further, Section 73 of the Act makes provision for un-liquidated damages (not stipulated in a contract), Section 74 deals with liquidated damages (stipulated in a contract), and no compensation is attracted for mere breach of contract u/s.73 and 74 of the Act unless such breach resulted in an actual loss or damage to the opposite party employer. In the case of Santosh Gupta Vs State Bank of Patiala AIR 1980 SC 1219, the Supreme Court ruled that the expression retrenchment must include every termination of the services of a workman by an act of the employer.. Since you were terminated from your job without holding a domestic inquiry into the allegation of 'Breach of Contract' and without allowing you to defend the allegation, following the principle of natural justice, the action of the management may be held illegal and unfair labour practice, once you challenge the termination order by filing an application under Section 2A of the Industrial Dispute Act directly before the Industrial Tribunal or Labour Court concerned. When you are an employee of the IT Company then be informed that to restrict IT Companies from exploiting their employees by playing double standards, the Division Bench of the Karnataka High Court in the case of Commissioner of Income Tax v. Texas Instruments India Pvt Ltd (2021) 435 ITR unambiguously held that the IT sector employees considered to be "workmen" under Section 2(s) of the Industrial Dispute Act, 1947. If required, consult an Advocate specialized in service/employment matters for tailored advice and to understand your rights and remedies to navigate the issue effectively. As regards your specific query " if I can get the internship letter or not", please be noted that in case, the contents of an internship offer letter states that an intern will be absorbed or taken on permanent roll of the Company post successful completion of his/her internship, then an additional letter of internship or offer letter is not essentially required.
Posted On 09-Oct-2025
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