Fired unfairly? Your rights and how to challenge it

You have been told to leave, perhaps by phone, perhaps by a letter with no reason. Many people believe an employer in India can fire anyone at will. For most workers, that is not the law. Here is when a termination is unlawful, what you must be paid, and where to go.

Who is protected, and by which law

Since 21 November 2025, the Industrial Relations Code, 2020 (IR Code) has replaced the Industrial Disputes Act, 1947. Its strongest protections are for a "worker": anyone doing manual, unskilled, skilled, technical, operational, clerical or supervisory work for pay. Two groups are left out: people employed mainly in a managerial or administrative role, and supervisors earning more than ₹18,000 a month (or a higher figure the Central Government notifies) Sec 2(zr) IR Code. Your job title does not decide this; what you actually do every day does.

If you are not a "worker" (for example, a senior manager), your rights come mainly from your appointment letter, company policy and the civil courts. You can still claim notice pay, unpaid salary and damages under your contract.

Government employees have extra protection: under Art 311 of the Constitution, a civil servant cannot be dismissed or reduced in rank without an inquiry in which they are told the charges and heard. Their remedy is usually the Central or State Administrative Tribunal.

When a termination is unlawful

1. Dismissal for misconduct without a fair inquiry

If the employer says you did something wrong (theft, absence, indiscipline), basic fairness, called natural justice (the right to know the charge and to be heard), requires a charge-sheet in writing, time to reply, and usually a domestic inquiry (an internal hearing) where you can answer the evidence and bring a co-worker to help. A dismissal without this can be set aside by the Tribunal.

2. Retrenchment without notice or compensation

Retrenchment means ending your job for any reason other than punishment: cost-cutting, closing a department, "restructuring". It does not include retirement, ill-health termination under your contract, or the natural end of a fixed-term contract. Before retrenching a worker with at least one year of continuous service, the employer must Sec 70 IR Code:

• give one month's written notice stating the reasons, or pay wages for that month instead;
• pay retrenchment compensation equal to 15 days' average pay for every completed year of service (and part of a year over six months);
• send notice to the appropriate government;
• generally follow "last come, first go" within the category.

In factories, mines and plantations with 300 or more workers, the employer also needs the government's prior permission for lay-off, retrenchment or closure. The Code also requires a retrenching employer to contribute 15 days' last-drawn wages to a worker re-skilling fund, from which that amount is to be credited to the retrenched worker within 45 days.

3. Terminations the law forbids outright

• Firing a woman because she is pregnant or on maternity leave.
• Punishing you for joining or forming a trade union, or for a complaint of sexual harassment.
• Discrimination on grounds of caste, religion, gender, disability or similar grounds.
• Forcing a "resignation" under threat: a resignation that was not voluntary can be treated as a termination.

Fixed-term contracts are lawful under the IR Code, and a contract simply ending on its agreed date is not retrenchment. But a fixed-term worker must get the same wages, hours and benefits as a permanent worker doing the same job, and a chain of short contracts used only to avoid the law can be challenged.

Money you must receive

Whether you resigned, were dismissed or were retrenched, the employer must pay all wages due within two working days of your last day Sec 17(2) Code on Wages. In addition, check for:

• Notice pay and retrenchment compensation, where they apply.
• Leave encashment for unused earned leave, as your terms and the law provide.
• Gratuity under the Code on Social Security, 2020, generally after five years of continuous service (fixed-term employees qualify after one year).
• Your provident fund: withdraw it or transfer it to the next job through the EPFO portal using your UAN.
• A relieving letter and experience certificate. These cannot be held back to pressure you.

Step by step: challenging the termination

1. Get it in writing. Email or write to HR asking for the termination letter, the reason, and a statement of your dues. Keep a copy. Do not sign anything that says you resigned if you did not.
2. Raise a grievance. Every establishment with 20 or more workers must have a Grievance Redressal Committee. You can apply to it within one year of the dispute arising; it should finish within 30 days Sec 4 IR Code.
3. Apply to the conciliation officer at the district labour office (or online on samadhan.labour.gov.in for establishments under the Central Government). The officer calls both sides and tries for a settlement, which is binding if signed.
4. Go directly to the Industrial Tribunal. For discharge, dismissal, retrenchment or any termination, you may file your own application before the Tribunal once 45 days have passed since you applied for conciliation Sec 4(10) IR Code. You must do this within two years of the termination Sec 4(11) IR Code. The Tribunal can order reinstatement, back wages or compensation.
5. Unpaid wages only? You can also file a wage claim before the authority under the Code on Wages through the labour department.
6. Not a "worker"? Send a lawyer's notice under your contract, then file a civil suit or, for some companies, use the arbitration clause.