COVID-19: Employment Rights and Job Loss

In these times of COVID, the already fragile global economy was dealt a serious blow. This has led to a massive panic situation for the corporate sector. As with all such panics, they have resorted to contracting their business by through stricter budgetary restriction. Corporation have started terminating, laying off, and otherwise eliminating employment – often through legally dubious methods. Simultaneously, several companies have started forcing employees to work in unsafe or infection-prone activities under the threat of termination, while other are attempting to keep their employees safe by mandating work from home till December. If you are afraid you may be terminated – or if you already have been – then it is important to know your rights and how best to protect them. Below, we have provided a brief description of your rights and how to protect yourself from the effects of an illicit termination.

India has a very robust and worker-friendly set of labor laws. From the Industrial Disputes Act to the Employees’ Compensation Act, there are dozens of laws that, in theory, provide for strong protections of employees’ rights. These extend to the provision of minimum wages, providing standardized forms of dispute redressal for employees, provision for pensions, working condition regulations, and much more.

Unfortunately, most employee fall outside the ambit of labor law – either due to a salary higher than the legal maximum or an office with staff under the legal minimum. For those making more than INR 10,000/- a month or working in a firm with less than 100 employees, very few of these protections will apply.

In these cases, employees must resort to common law actions– such as tortious interference, violation of contract or fraud – in order to protect themselves from wrongful termination. In order to best protect your interests, you must ensure you have the strongest case possible. To do so, you should follow these steps:

1. Do Not Sign Anything:
Companies in a hurry to reduce staff overheads can attempt to strong arm terminations or pay cuts through arbitrarily negative performance reviews. Often times, companies will try to take away your right to dispute the termination or the circumstances around it by having you sign away your rights. In essence, your signature is used to eliminate challenges to their allegations. This can be through a negative performance review, a performance pledge, a probation notice, or some similar document. In order to prevent them from using these reports to justify their behavior, ensure you do not sign any such documents.

2. Dispute Any Negative Performance Reviews:
Merely refusing to sign any reviews issued at this time may not be enough. It is also important to dispute the allegations in those reviews in writing. The best method for this is through e-mail, though registered mail may be an acceptable substitute. Make sure to send copies to your HR department, supervisors, and legal department.

3. Demand Copies of Performance Reviews:
It is important to build up a paper trail to counter any allegations of deficient performance the company may use to justify termination. One excellent way of doing this is by collecting past performance reviews to demonstrate the arbitrary difference between the two.

4. Get a Copy of Your Full Employment Contract:
Employment contracts are complicated, largely because they are broken into several different documents within the company. Make sure to ask for all documents that govern your employment, including: Appointment Letter, HR Policies, Employee Handbook, Internal Policy Documents, Code of Ethics, etc. All of these will be used to determine your legal rights and obligations in the face of termination.

5. Collectivize:
Finally, it’s important to ensure that you don’t go into battle alone. Many of your pears are in the same situation you are. Talk to them. Prepare to respond jointly. More people means a louder voice. More victims makes it easier to prove systematic abuses.

Disclaimer:
Please note that this is not general advice for use in any situation and should not be considered a substitute of legal advice. Only if you are worried about mass layoffs or termination connected to the coronavirus. If you are concerned about the state of your employment for any other reason, consult an attorney before acting. 

Originally posted on www.kpalegal.com on 14th May 2020

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