One of my clients recently had a case which I am explaining below and if you are stuck in such similar situation, here is what to do.
Note: Due to attorney-client privilege, I cannot disclose complete case details or identify the actual parties involved. However, I am sharing the essential facts and legal approach so that if you find yourself in a similar situation, you can understand the available solutions and legal remedies.
Kavita Reddy had given over two years of her working life to a reputed educational trust operating out of Indore, Madhya Pradesh. Her role was demanding, her output consistently praised, and her managers had put appreciation on record, in writing, more than once. So when she was called into an HR meeting on a quiet Tuesday afternoon in early March 2025, she had no reason to expect what came next.
Two options. That's all HR placed in front of her. Resign quietly, or accept termination. No prior warning, no performance concerns raised, no written notice. When Kavita refused to resign and requested fair compensation of three months' salary given her tenure, the HR officer told her plainly: "Your confirmation letter was never issued, so you are still on probation. We can end this without giving any reason."
She had, in fact, completed a two-year probation period and then continued working for another three months, waiting for a confirmation letter the trust never sent. She'd raised workplace environment concerns via email, along with several colleagues. Those concerns were ignored. The trust, registered as a charitable organisation, invoked "company policy" when it suited them — but denied her the protection a confirmed employee would ordinarily receive.
Kavita first reached out to a general practice advocate in her city, whose approach didn't account for the specific procedural requirements under labour law. The matter wasn't gaining traction. A contact referred her to Advocate Sudhir Rao. Once the facts were reviewed with a sharper focus on the Industrial Disputes Act, 1947, the standing orders applicable to the trust, and the evidentiary value of her written appreciation records and email trail, the legal strategy shifted considerably. The organisation ultimately agreed to a settlement that included full notice pay, a relieving letter, and acknowledgment of her actual service period — considerably more than the one month they had initially offered.
Advice in Such Cases
Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation to come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.
Document Everything Immediately. Collect every piece of evidence before the organisation restricts your access. Email threads, written appreciation, WhatsApp messages, attendance records, salary slips — all of it matters. Don't wait even a day after termination to do this. Frankly, I've seen people lose strong cases simply because they assumed their work email would stay accessible for weeks.
Do Not Sign Anything Without Legal Review: Many employers present a "full and final settlement" document or a resignation letter during termination. Signing either can waive your right to future claims. Have your advocate review any document before you sign. This is non-negotiable.
Domain Experience Counts: Labour and employment disputes involve specific procedural requirements under the Industrial Disputes Act, 1947, standing orders, and applicable State Shops and Establishments Acts. An advocate who regularly handles such matters will identify angles — like constructive termination, deemed confirmation, and wrongful denial of notice pay — that a general practitioner may not immediately consider. Now, before you act, understand that this difference in approach can be significant to the outcome. It was in Kavita's case.
Applicable Sections of Law
- Industrial Disputes Act, 1947 — Section 25F: Mandates that a workman who has completed one year of continuous service cannot be retrenched without one month's written notice (or pay in lieu) and retrenchment compensation at the rate of fifteen days' average pay for every completed year of service.
- Industrial Disputes Act, 1947 — Section 25G and 25H: Govern the order of retrenchment and the right of retrenched workmen to be re-employed when vacancies arise.
- Industrial Employment (Standing Orders) Act, 1946: Requires certified standing orders to define the terms of probation and confirmation. Indefinite extension of probation without a certified standing order may not be legally valid.
- Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017 (or applicable State Act): Protects employees in commercial establishments against termination without notice, and mandates compensation in cases of sudden removal.
Jurisdiction — Where to File the Case
Get this right from the start. Labour disputes of this nature are heard before the appropriate Industrial Tribunal or Labour Court under the Industrial Disputes Act, 1947. Territorial jurisdiction typically lies with the Labour Court or Industrial Tribunal in the city or state where the employment was based — in this type of case, the relevant Labour Court in Madhya Pradesh. Before approaching the tribunal, a conciliation officer under the Act must typically be approached, and a failure report obtained. For disputes involving salary below a certain threshold, the authority under the Payment of Wages Act, 1936 may also have jurisdiction. And here's the thing — filing before the wrong forum can mean your case is returned after months of delay. That's not a formality to skip over.
Limitation Period
Don't sleep on this. Under the Industrial Disputes Act, 1947, a reference to the Labour Court or Industrial Tribunal must generally be made within three years from the date of the dispute arising — which is typically the date of termination. But individual complaints under State Shops and Establishments Acts may carry shorter limitation periods, sometimes as brief as one year. Missing the limitation period can be fatal to a claim. Courts do have power to condone delay in some circumstances, but establishing sufficient cause for delay adds burden and uncertainty to your case. Act promptly. Don't let the clock run quietly while you wait for things to resolve on their own.
Interim Reliefs Available
In wrongful termination matters, interim relief can be sought before the appropriate Labour Court or Industrial Tribunal under the Industrial Disputes Act, 1947. This may include a stay on the termination order pending adjudication, particularly where the employer's action appears mala fide or violates standing orders. Where the employee has access to civil courts (for instance, where the employment contract contains specific terms enforceable under the Specific Relief Act, 1963), an injunction under Order 39 Rule 1 of the Code of Civil Procedure, 1908 may be considered. Make no mistake, interim reliefs matter — they prevent the organisation from filling the position or destroying records while the dispute is pending. Seek them early.
If You Are the Victim
- Preserve all communication records: Back up emails, messages, and any written appreciation or performance records to a personal device or cloud account immediately. Do not rely on your work email or work laptop alone.
- Write a formal protest letter: Send a written response to the HR communication by email, clearly stating that you do not accept the termination as lawful and that you reserve your rights under applicable labour laws. Keep a copy with delivery proof.
- Approach the Labour Commissioner: File a complaint before the Regional Labour Commissioner or the conciliation officer under the Industrial Disputes Act, 1947 to formally register the dispute and trigger the conciliation process.
- Obtain a relieving letter and service certificate: You are entitled to these regardless of the manner of separation. Insist on them in writing — your advocate can help you frame that demand formally.
- Do not make public statements on social media: Posting about the organisation online while legal proceedings are pending can compromise your case and potentially expose you to defamation claims.
Documents You Must Keep Ready
- Aadhaar card and PAN card (identity and address proof)
- Original appointment letter and any subsequent letters modifying your terms of employment
- All salary slips and Form 16 or Form 16A for the period of employment
- Bank statements showing salary credits for the entire period of service
- Written appreciation emails, performance appraisals, and any increments or role expansions communicated in writing
- Email records of workplace concerns raised by you or your colleagues
- Attendance records or any official records reflecting your actual working period
- The HR termination communication (written or recorded, if lawfully recorded)
What Evidence Is Required?
- Proof of continuous employment: Salary slips, bank transfer records, and email correspondence spanning the full period of service establish the actual duration of employment, regardless of what the confirmation letter says.
- Written appreciation and performance records: These directly contradict any post-hoc claim of poor performance and establish that termination was not performance-driven.
- The appointment letter: This is primary evidence of the original terms — including the stated probation period and any conditions for confirmation.
- Absence of a certified standing order permitting indefinite probation: If the organisation cannot produce a certified standing order authorising extension of probation beyond the contractual period, this weakens their legal position.
- Email records of workplace complaints: These establish a timeline and may support a finding that the termination was retaliatory rather than routine.
- Witness statements from colleagues: Co-workers who experienced similar treatment or who witnessed the HR interaction can provide corroborative evidence before the Labour Court.
How Courts Typically Approach Such Cases
Labour Courts don't just take the employer's word for it. Industrial Tribunals in India look beyond the label an employer places on an employment relationship, and the Supreme Court, in Bharat Fritz Werner Ltd. v. R. Sathyanarayan, 2013, has held that the actual nature and duration of service determines a workman's rights — not merely what the appointment letter says. Where an employee has demonstrably worked for over a year and the employer can't show a valid basis for continued probation, courts are unlikely to accept the "still on probation" defence at face value. The evidentiary burden shifts. And here's the thing — organisations that rely entirely on procedural technicalities, without substantive justification for termination, generally find that Labour Courts examine such terminations with considerable scrutiny.
Timeline of Legal Process
- Step 1 — Issue of Legal Notice (Week 1-2): Advocate sends a formal legal notice to the organisation stating your claim and demanding reinstatement or compensation.
- Step 2 — Conciliation before Labour Commissioner (1-3 months): A conciliation officer attempts to resolve the dispute. If unsuccessful, a failure report is issued, which is required before approaching the Labour Court.
- Step 3 — Reference to Labour Court / Industrial Tribunal (1-2 months after failure report): The appropriate government may refer the dispute, or you may approach the Labour Court directly depending on the applicable State Act.
- Step 4 — Filing of Statement of Claim and Written Statement (2-4 months): Both parties file their pleadings before the Labour Court.
- Step 5 — Evidence Stage (6-18 months): Documents are exhibited, witnesses are examined, and cross-examination takes place.
- Step 6 — Arguments and Award (3-6 months after evidence): The Labour Court passes its award. Total timeline from filing to award: 2-4 years in contested matters, though settlements during conciliation can resolve matters in 3-6 months.
- Step 7 — Appeal (if needed): The award may be challenged before the High Court under Article 226 or 227 of the Constitution.
Understanding the Costs
The total cost of a matter like this varies significantly from one case to the next — it depends on the complexity of the dispute, the forum involved, the number of hearings, and the specific facts of your situation. There is no single fixed figure that applies to everyone.
A professional advocate can give you an accurate estimate only after reviewing all your facts and documents in a consultation.
Can the Matter Be Settled Out of Court?
Yes. And in most wrongful termination matters, settlement is both possible and advisable at the right stage. The conciliation process under the Industrial Disputes Act, 1947 is specifically designed to bring parties to a negotiated resolution before formal adjudication begins. Lok Adalats are also available for pending labour disputes and offer the benefit of a legally binding award without court fees. Section 89 of the Code of Civil Procedure, 1908 similarly encourages mediation and conciliation in civil matters. A well-drafted settlement agreement, negotiated through counsel, can secure notice pay, retrenchment compensation, a clean relieving letter, and sometimes an agreed reference for future employment. Settlement isn't weakness — it's often the fastest and most certain path to fair relief, particularly when the employer faces a credible legal challenge.
Common Mistakes People Make
- Accepting verbal assurances from HR: Many employees leave on the promise that "we'll sort it out" or "the letter will come." Nothing said verbally holds up in a Labour Court. Get everything in writing.
- Signing the full and final settlement without review: Organisations often present exit documents quickly, under time pressure. Signing without having an advocate review the document can permanently waive your claims to retrenchment compensation, notice pay, or reinstatement.
- Delaying action past the limitation period: Waiting too long — sometimes even a few months — to formally register a dispute can result in your claim being time-barred. The clock starts from the date of termination, not from the date you finally decide you've waited long enough.