Facing termination from a job without any reason can be a scary and unsettling experience. Not only can a sudden firing leave you worried about how you will pay your bills, but it can also feel like a personal attack. Imagine showing up to work one day, happy to attend a meeting, and hit targets and complete reports the day before, but getting an email, phone call or instant message from your boss telling you not to come into work tomorrow.
Illegal termination by Employer doesn’t mean that all termination is illegal. The legality of your termination will be based on a number of factors such as your status, terms of appointment, cause for termination (if any), applicable employment law, if any; disciplinary code, length of service and nature of the establishment.
For instance, if you are covered under the Industrial Relations Code, 2020, you may be entitled to certain statutory protections with respect to termination including but not limited to provisions regarding retrenchment, filing a dispute and having it adjudicated. If you are employed with a company in Delhi, you may be covered by the Delhi Shops and Establishments Act, 1954 as well depending on the nature of the establishment and facts.
The first question shouldn’t be “Can my employer fire me?”, it should be “Was my employer required to adhere to any laws, contractual clauses or processes when firing me?”
That little change in words is significant.
You could be terminated in Delhi, Noida, Gurugram, Ghaziabad, Bengaluru or Mumbai and the situation could look similar, but based on the facts your legal recourse could be completely different. A ‘workman’ as defined under the industrial-relations statutes will not be treated the same as an ‘employee’ or ‘senior managerial employee.’
BK Singh can help guide you as an employee or employer through your employment dispute. This includes termination disputes, wage increases/lapses, deductions, industrial law disputes, domestic inquiries and even your right to reinstatement. Instead of wondering what will happen if… or what does the law say about… we look at your employment documents, confirm your employment status, draft a chronology and analyze what legal rights you have in your particular situation.
Does Illegal Termination Still Exist in India in 2026?
Due to India’ shifting labour law regime to the new Industrial Relations Code, 2020 which took effect on 21 November 2025. As such employment law disputes have become even more fact-sensitive. Furthermore, The Industrial Relations (Central) Rules, 2026 were notified in May of 2026.
Employees need to be cautious about which laws apply to their termination situation instead of relying on outdated articles about unlawful termination which only reference the Industrial Disputes Act, 1947.
Under Delhi laws for example, Delhi has set forth regulations governing employment in shops and business establishments under the Delhi Shops and Establishments Act, 1954. Under the Delhi Shops and Establishments Act, there are provisions related to termination of employment, payment of wages and other conditions of employment.
A termination claim could be for one month’ salary. Employees have been terminated and claimed several months salary worth of unpaid wages, notice period salaries, retrenchment compensation, attamcat experience letters, future employment and their ability to support their family.
Quick Facts
The fact that an employee may disagree with termination from employment does not make it illegal.
Your employment status matters and can change what remedy or forum you have access to.
There are statutory protections against termination in the form of retrenchment under the Industrial Relations Code. Which is subject to its definition of who qualifies as a ‘workman’ and its conditions.
Notice/paid in lieu and compensation for retrenchment is addressed under Section 70 IR Code for qualifying employees.
Every establishment employing 20 or more workers is required to form a Grievance Redressal Committee under the Industrial Relations Code, 2020.
Delhi Shops and Establishments law requires notice to be given to certain categories of employees who have been employed for at least three-months continuously.
Again, this is subject to the conditions and limitations under the statute.
Many factors will come into play when determining what remedy is available to you.
What Is Considered Illegal Termination by an Employer?
Employees often use this term to describe any termination they think is unjust. Illegal termination from employer will usually mean that an employer ended the employment relationship in a manner that is contrary to:
- A legal requirement, or
- A binding condition of employment or
- Applicable procedure.
While the term feels like it should apply to any termination an employee disagrees with. The legal standards for an unlawful termination claim are more nuanced. An employee may be able to challenge their termination if;
- The employer did not follow the notice/pay in lieu requirements under a statute;
- The employer did not follow proper disciplinary procedure;
- The termination was deemed retrenchment and was actually unlawful; or
- The employer breached a contractual or statutory provision which limits their ability to terminate the employee.
Just because a decision is unfair or incorrect does not entitle the employee to the same remedy in each situation.
If a worker does qualify as a ‘workman’ under the Industrial Relations Code, they may be able to invoke industrial dispute resolution procedures. Keep in mind this is not available to every employee characterized as managerial or in a supervisory role. The duties you performed at work and the statutes’ definition will play a huge role.
What Laws Cover Illegal Termination from Employment?
The Industrial Relations Code, 2020 absorbed provisions relating to industrial disputes. This includes matters relating to discharge, dismissal and retrenchment.
Section 70 provides for conditions precedent to retrenching a qualifying worker. One month’s notice or wages in lieu thereof, retrenchment compensation to be calculated as per the formula under the statute and notice to the Government or other authority as may be specified.
Additionally, The Code created an institutional grievance mechanism for individual grievances. Industrial Establishments employing 20 or more workers will be required to form a Grievance Redressal Committee per the statutory requirements.
Section 50 provides jurisdiction to an adjudicatory body called the National Industrial Tribunal or Tribunal to award relief where the discharge, dismissal or termination of a worker is unjustified. Reinstatement with back wages or any other relief the facts of the case may call for is available.
Lastly, the Delhi Shops and Establishments Act, covers Delhi residents as well. This statute includes termination provisions under Section 30. Where an employee has worked for at least three months continuous employment, the employer must give one month’s written notice of termination OR payment in lieu in respect of a dismissal or discharge as the situations described in the provision require. This section has an exception for misconduct but comes with several statutory hoops to jump through.
Your actual employment relationship should be analyzed to see which route would be correct.
Who Can Contest Employer Termination?
First you’ll want to figure out what type of ‘service’ you were providing.
Not every employee is treated the same under labour and industrial statutes. A workman, clerk, superior, salesman, officer, contractor and even a workman in a supervisory capacity have different statutory meanings. What your job title is according to the appointment letter will matter. But, what duties you actually performed will be analyzed to determine your status.
Employee termination claims can become critical to prove where:
- The employer terminated your employment without giving you a termination letter
- The employer has not paid you your wages or dues owed
- The employer/company coerced you into resigning from your position
- The employer levied charges against you for disciplinary purposes without giving you a fair chance to defend yourself
- The employer did not follow the mandatory conditions for termination in the form of retrenchment.
- Your employer is trying to force you into signing something that deprives you of your legal rights or terminates your employment in a manner which is illegal.
- Termination was in relation to an unlawful dispute at the workplace or a protected activity you undertook as a worker.
BK Singh can go through your employment contracts and timeline of events to see what legal issues should be considered before you make a formal response.
What Should I Do If I Received an Immediate Termination From Work?
If you’ve been terminated or told you’re “let go” from your job. The first thing you should do is preserve that piece of information.
Save your emails, WhatsApp chat with your colleagues or superior, your attendance records or any other piece of communication from your company. Don’t clean out your desk just yet. Keep your appointment letter, salary slips, bank statements, appraisal reviews, any show cause or prior warning letters from HR or your boss, HR emails and of course the termination letter.
If your employer told you to leave the job verbally, ask for a written confirmation of the termination via email or another method of communication. The reason you should save all this information is to have an accurate timeline of events. You don’t want your claim coming down to he said, she said arguments regarding phone conversations. Once you have everything in writing.
You can draft a representation to the employer outlining the termination, any pending payments owed to you, cause of termination (if given) and include pertinent employment proofs in light of the facts. Remember, just because you can write something doesn’t mean you should file a legal lawsuit. Not every employment matter requires you to sue your employer.
What Documents Are Important in Illegal Termination Claims?
Having a proper trail of documentation will make your legal situation much easier to review.
Employment Documents
Keep your appointment letter, employment contract, confirmation letter, promotion letters, job description, and HR policies that were provided to you during employment.
Salary & Employment Records
Bank statements, salary slips, PF details, attendance records, leave application/worked details and incentives can help establish length and terms of employment.
Termination Related Documents
Keep your termination letter or dismissal email, resignation letter (if applicable), show cause notice, charge-sheet, previous warning letters, domestic inquiry documentation, correspondence with HR or any other wrongdoing via emails.
Electronic Evidence
This could include relevant emails or official chats via WhatsApp too. Make sure to save the original document where possible instead of printing a screenshot. ALWAYS obtain documents legally and through reasonable means. Employees should not be stealing confidential employer documents that doesn’t pertain to their claim or logging into hardware they are not permitted to access.
What Are the Legal Steps After Illegal Termination Occurs?
Every situation will be factually different based on your employment classification and which law applies to you.
Generally, the first steps include a review of your documents and legal analysis. The purpose is to understand the employer-employee relationship, which law applies, review of contract provisions if applicable, analyze cause for termination and potential remedy.
This may be followed by a legal demand letter. Thereafter the matter may be referred to an internal grievance process, go to conciliation or the applicable judicial or quasi-judicial forum. For example, the Industrial Relations Code allows for conciliation and adjudication of industrial disputes. The same act provides relief to workers where their employment was terminated from the workplace under unlawful conditions. Such as illegal discharge, dismissal or termination against a ‘worker.’
The Central Government has even mentioned illegal termination and dismissal as a type of complaint workers can file under the SAMADHAN portal. an online dispute resolution scheme.
Only a lawyer can tell you exact what steps would be taken in your situation. As every employees’ situation is unique. Legal recourse will depend on your employee classification, jurisdiction, statute, and facts.
When Should I Contact an Employment Attorney?
You should speak with an Employment Attorney if your termination was due to disputed misconduct, forced resignation, large unpaid amounts, alleged retrenchment, disciplinary proceedings, high-end employment, non-compete clauses or industrial affairs.
Another time to seek legal advice is before you sign a settlement or anything your employer presents you with and asks you to sign. Such as a resignation, release letter or full-and-final settlement.
If your employer has issued you a legal reply, show cause notice or disciplinary notice. You should have it reviewed immediately to ensure issues are identified at the start and positions aren’t solidified.
BK Singh drafts and negotiates labour and industrial-dispute matters on behalf of employees and employers paying special attention to the issued document/ memorandum, nature of employment, timeline of events and appropriate forum such disputes can be handled from a legal standpoint.
How Can BK Singh Advocate Help with Termination Issues?
BK Singh Advocate labour and industrial-dispute law practice consists of termination disputes, claims for wages, domestic enquiries, and Industrial Tribunal cases. Please see here for published services information on how we support employees through review, representations, legal notice drafting, labour conciliation and labour court hearings. etc.
Representations to your employer can start as simple as a review of your employment documents and termination timeline. From here, we can help you identify if you have a contractual dispute or statutory employment matter.
Where possible, we may assist with drafting of proper representations and legal proceedings if the facts of your case merit such action.
Remember to stay calm. Your goal should be to first understand the legal issue, preserve any evidence that supports your claim and then enforce your right to a legal remedy.
FAQs
Q1. What does illegal termination by employer mean?
Ans. Illegal termination by employer would in most situations amount to termination carried out in violation of a statute, enforceable condition of employment or mandated process. Each situation will turn on the status of the employee and surrounding facts.
Q2. Can I make a claim against my employer if they terminated me without giving me a termination letter?
Ans. Yes, you can make a claim against your employer even if you were terminated from your job and they did not provide you with a termination letter. Verbal termination of employees will make matters complicated for you as you will have to prove what was said. Preserve any emails or text messages you received regarding the termination. As well as your attendance records and any other communication after you were terminated.
Q3. Can my employer terminate me without any notice?
Ans. Whether your employer can terminate you without notice will depend on what category of employment you fall under, your employment contract and what statute applies to your employer. Some statutes provide for notice or payment in lieu. But situations like misconduct are treated differently under the statutes.
Q4. What Can I Claim From My Employer If They Illegal Terminate Me?
Ans. The monetary damages you can claim from your employer will depend on the facts of your case and which statute applies to you. You may be entitled to claim unpaid wages, notice pay, statutory compensation and any other relief you’re entitled to under law. An attorney cannot predict if you will obtain these or the amount of these damages in advance.
Q5. Can I Claim Reinstatement If My Employer Illegal Terminated Me?
Ans. Yes, you can potentially claim reinstatement if your employer terminated you. Reinstatement is a form of relief available to workers in certain industrial disputes. Under Section 2(9)(iv) of Industrial Relations Code, ‘reinstatement of workman in his former employment’ is the remedy where the Tribunal thinks fit to order the employer to reinstate the workman to his former employment or place him in another suitable employment along with compensation or any other relief if the conditions under the Act are satisfied.
Q6. What if my employer forced me to resign?
Ans. If the employer forced or made you resign against your will, that could possibly be a different legal matter than resigning from your job. Make sure to save any messages you received from the employer/company asking you to resign. Speak to any witnesses who may have been present when the incidents took place or knew about your resignation. Any type of evidence regarding your employers behavior will help determine your claim moving forward.
Q7. Does IR CODE apply to all employees?
Ans. No, relief is not available to all employees just because they work for a company. Determine what definition the act applies to, what duties your employer had towards you under the law. How many people work at the company you work for, what category of employee you fall under and any exemptions under the statute.
Q8. My employer terminated me but they still haven’t given me my salary! What should I do?
Ans. Just because your employer terminated you, does not mean they can avoid paying you your earned salary. First review your salary slips and bank statements to confirm if your employer has paid you your full salary. Request a copy of your employers wage records to see if they still have your salary. Your employer is required by law to maintain these records.
Q9. Can I file a complaint with labour department for illegal termination?
Ans. This will depend on the facts of your situation and what category of employee you are classified as. You may be able to file a complaint with the labour department to allow for conciliation or another method of labour-dispute resolution. The SAMADHAN portal specifically mentions dismissal and illegal termination as a type of complaint/workers can file.
Q10. Should I consult a lawyer before signing my full and final settlement?
Ans. If you currently have a dispute with your employer regarding your termination, dues owed to you or your legal rights as an employee. You should always speak with a lawyer before signing any type of settlement document.
Conclusion
Approaching an illegal termination claim with assumptions can be detrimental to your case. Your actual job duties, employment contracts, years worked, cause for termination, prior disciplinary actions and applicable laws all matter. Now with the new Industrial Relations Code, 2020 you’ll have to keep that in mind as well. Recent rules have been notified under it too.
So if you were given a termination letter, asked to resign, not receiving your salary or illegally dismissed from the office without any paperwork. Start by keeping your documents and seek what legal recourse you can take.
BK Singh Advocate has helped people with matters related to labour and industrial dispute law all over Delhi NCR and India at large subject to the facts and laws applicable to each situation.
