Labour and Employment

Overview

Our Labour and Employment practice advises employers, multinationals, and senior executives across Delhi NCR and North India on the full range of Indian labour and employment laws, covering compliance, contracts, disputes, and workplace policies under central and state legislations. We handle employment and consultancy agreements, ESOP and executive compensation structuring, terminations and retrenchments, and industrial-dispute and trade-union matters under the Industrial Disputes Act, 1947, while advising on statutory benefits under the EPF Act, 1952, the ESI Act, 1948, and the Payment of Gratuity Act, 1972. A key area is POSH compliance and Internal Committee support under the Sexual Harassment of Women at Workplace Act, 2013, alongside contract-labour compliance under the CLRA Act, 1970 and readiness for the four new Labour Codes. We conduct labour audits and represent clients before Labour Courts, Industrial Tribunals, and the High Courts across the region, balancing business needs with statutory protections.

1. 1

   Review the contract, policies and standing orders

   Examine the employment contract, HR policies, and the certified Standing Orders (under the Industrial Employment (Standing Orders) Act, 1946) to confirm the notice period, the disciplinary procedure, and whether the employee is a 'workman' under Section 2(s) of the Industrial Disputes Act, 1947.

2. 2

   Establish and document the grounds

   Identify the lawful ground — misconduct, poor performance, redundancy/retrenchment, or end of fixed term — and build the supporting record (performance reviews, warning letters, or charge-sheet and domestic inquiry findings where the termination is for misconduct, observing principles of natural justice).

3. 3

   Serve notice or pay in lieu

   Serve the contractual or statutory notice of termination, or pay salary in lieu of the notice period, in accordance with the contract and standing orders.

4. 4

   Comply with Section 25F for workmen

   Where a workman with at least one year of continuous service is being retrenched, comply with Section 25F of the Industrial Disputes Act, 1947 — one month's written notice (or pay in lieu) and retrenchment compensation of 15 days' average pay per completed year of service paid at the time of retrenchment.

5. 5

   Observe last-come-first-go and re-employment rules

   Follow the 'last come, first go' rule of Section 25G (the most recently hired workman in the category is retrenched first, absent recorded reasons) and the re-employment preference under Section 25H. Larger establishments must also obtain prior government permission under Chapter V-B where Section 25N applies.

6. 6

   Settle statutory dues

   Process the full-and-final settlement covering the last drawn salary, gratuity under the Payment of Gratuity Act, 1972 (for employees with five or more years of service), the Provident Fund balance, bonus, and encashment of accrued leave.

7. 7

   Issue documentation and close compliance

   Issue the relieving letter, experience certificate, and Form 16, file the requisite returns with the EPFO/ESIC, and retain the complete termination file to defend any industrial dispute reference or claim before the Labour Court.

This is a general guide. For advice on your specific matter, speak to our Labour & Employment team.