Legal Compliance or Employee Hardship? A Survey Based Study on the Impact of Arbitrary Termination among Employees in Indian IT Sector
Author : P Munish Kamali and Dr. S Maruthavijayan
Abstract :
This study explores termination, lay-offs, and retrenchment in India’s IT sector, examining compliance with the Industrial Relations Code, 2020, and the impact on employees. Using a non-doctrinal research approach, the study collects primary data through surveys from IT professionals to understand their experiences, awareness of legal rights, and perceptions of fairness in termination processes. The research also analyzes whether companies follow statutory requirements such as notice periods, compensation norms, and procedural compliance during workforce reduction. Further, it compares Indian IT practices with global firms like Microsoft and Google to identify best practices. Based on findings, the study aims to provide practical recommendations that balance employee protection with organizational sustainability, ensuring legal compliance and fairness in employment relations. In addition, the research investigates the psychological and economic impact of involuntary exits on employees, highlighting issues such as stress, job insecurity, and mental health challenges. It evaluates the role of HR policies, grievance redressal mechanisms, and legal literacy among employees in preventing exploitation. The study emphasizes the importance of developing a robust legal framework tailored for the IT sector to address emerging challenges in a rapidly evolving digital economy. By bridging the gap between law and practice, this research contributes to policy-making, advocating transparent, ethical, and legally compliant exit processes that promote trust and stability in India’s IT industry.
Keywords :
Industrial Relations Code 2020, termination, lay-off, retrenchment, IT sector, India, non-doctrinal research, employee rights, legal compliance
