Termination may be unlawful if it done on the basis of following grounds :-
If there is an Implied Agreement and the Court considers that the employer has promised about continued agreement then the termination will not be taken as lawful.
There must not be violation of public policy by the employer in firing the employee as it is considered as unlawful. The termination done on the basis of discrimination between employees and job application based on race, religion, sex, ethnicity, background, etc. are considered as unlawful.
An employer cannot fire an employer only on the ground that certain unlawful activities have been reported against him or her. The termination cannot be done only on the basis of retaliation for a specific act.
The employee gets some benefits after termination if the termination is lawful or the employee has himself or herself willfully resigned. These benefits include:
The ÒFinal PaycheckÓ must be given by the employer to their employee. It s better understood as Òcollection of duesÓ. It generally depends upon the condition whether the employee quit or employer fired the employee.
The Severance Package is one type of contractual agreement between the employer and the employee. The employer will provide the terminated employee with a severance package but it is not compulsory by law.
The Health Insurance is provided to the terminated employees. They have right to health insurance coverage after their separation from the employer. It is only for the specific period of around 20 to 24 weeks.
In India, those who come under EmployeeÕs State Insurance Scheme are applicable for Òunemployment benefitsÓ. These are provided to unemployed worker who are qualified but are in search of employment.
The employer also issues a Òletter of referenceÓ to the outgoing employee stating his or her duration of employment, position and quality of performance.
Reference: Industrial Disputes Act, 1947