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ILLEGAL TERMINATION OF EMPLOYEES BY Mncs: ESTABLISHMENT OF HEALTY CORPORATE ENVIRONMENT

Author(s):
GAURANGI TANDON KHUSHBOO MALIK
Journal IJLRA
ISSN 2582-6433
Published 2024/04/17
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Issue 7
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ILLEGAL TERMINATION OF EMPLOYEES BY Mncs: ESTABLISHMENT OF HEALTY CORPORATE ENVIRONMENT
 
AUTHORED BY - GAURANGI TANDON & KHUSHBOO MALIK
 
 
ABSTRACT
Illegal termination of employees by multinational companies (MNCS) is a pressing issue that demands attention. In today’s globalized world MNCs wield significant economic power and influence, making them crucial players in the employment landscape. However, this power can be misused, leading to the unjust and unlawful termination of employees. One of the primary concerns surrounding illegal terminations by MNCs is the violation of labour laws and regulations. Many countries have strict labour laws in place to protect workers rights, such as ensuring fair wages, working conditions and job security. MNCs, with their vast resources and international operations, may exploit regulatory loopholes or engage in unethical practices to cut costs by terminating employees without due cause. This not only disregards the rights of workers but also underdetermines the integrity of labour laws.
 
Another aspect of this issue is the disproportionate impact on vulnerable groups. MNCs often operate in regions with varying socio-economic conditions, where employment opportunities may be scarce. When these corporations engage in illegal terminations, it can disproportionately affect marginalized groups, such as women, minorities, or migrant workers, who may have fewer alternative job prospects and less knowledge of their rights.
 
Furthermore, the consequences of illegal terminations extend beyond the immediate loss of livelihood for employees. Disrupted income streams can lead to financial instability, affecting not only individuals but also their families and communities. Moreover, the psychological and emotional toll on terminated employees can be profound, leading to stress, anxiety and a sense of injustice. The lack of accountability and transparency in some MNCs exacerbates the problem. Multinational corporations often have complex corporate structures that make it challenging to pinpoint responsibility for wrongful terminations. This opacity can hinder affected employees ability to seek legal recourse and receive compensation for their losses. Addressing, this issue requires a multi- faceted approach. First, governments and regulatory bodies must strengthen and enforce labour laws that explicitly prohibit illegal terminations. Second, MNCs should adopt ethical employment practices and prioritize corporate social responsibility to prevent illegal terminations within their organizations. Third, civil society organizations and labour unions play a crucial role in advocating for workers rights and raising awareness about the consequences of illegal terminations.
 
Illegal termination of employees by multinational corporations is a complex issue with far reaching implications. It not only violates labor laws but also harms individuals, families, and communities. To combat this problem, a concerted effort from government, MNCs and civil society is essential to ensure that workers rights are protected and that unethical practices are eliminated from the global employment landscape.
 
KEYWORDS
Illegal, Termination , Employment , Discrimination, Regulations ,Corporations
 
INTRODUCTION
Illegal termination of employees is a critical and multifaceted field within employment law and human resources management. It encompasses the study and analysis of various aspects related to the wrongful dismissal of workers and their jobs. Researchers in the domain investigate the legal frameworks and regulations governing employment termination examining cases of discrimination, retaliation and unfair labour practices. They also explore the impact of illegal terminations on individuals, organizations, and society as a whole. This research seeks to identify patterns, trends, and remedies to protect the rights of employees and promote fair employment practices, fostering a more equitable and just workplace environment.  National and international laws govern the illegal termination of employees by multinational corporations. At the national level, labour laws in each country dictate the rights and protections afforded to workers, including termination  procedures . Discrimination bases on race, gender, religion, or disability is often prohibited, and wrongful termination can result in legal action.
On the international stage, organizations like the International Labor Organization (ILO) establish guidelines to ensure fair labour practices globally. Treaties and conventions, such as ILO’s Termination of Employment Convention, aim to safeguard workers rights and provide a framework for addressing wrongful dismissals. Violations can lead to international sanctions and reputational damage for MNCs, emphasizing the importance of compliance with both national and international laws.
 
RESEARCH DESIGN
Research problem:
Exploring the ethical and legal Implications of Illegal Termination Practices by Multinational Companies. A comprehensive occurrence, underlying causes, and the consequences of unlawful employees terminations within the context of MNCs. This research aims to uncover patterns of illegal terminations, identifying contributing factors such as cultural differences, regulatory gaps and corporate practices. By assessing the socio-economic ramifications on affected employees and communities, this study seeks to propose effective strategies for enhancing corporate accountability, regulatory compliance and employee protection in the realm of MNC employment, ultimately contributing to fair and ethical practices on a global scale.
 
Research Questions:
1.      Is there a healthy corporate culture in MNCs?
2.      Is the fair treatment provided to the employees in the corporate society?
 
Research Objectives:
1.      Preventing illegal termination and promoting fair treatment to the employees.
2.      To prevail a healthy corporate culture in MNCs.
3.      To propose recommendations and strategies for enhancing accountability, transparency, and ethical behaviour within multinational corporation.
 
Literature Review:
SHRUTI MD[1]
This article discusses the strike by The Union of IT Employees (UNITE) against Virtusa Corporation, a global corporation with headquarters in Chennai, in an effort to force mass layoffs of employees nationwide. They discovered that there had been an unlawful employee termination. Employees at Virtusa claimed that after a fresher's assessment was done in Chennai, the company demanded the employees' resignations because of their poor performance. In the second instance, the employer forced the worker to sign a two-year bond, but it is now firing the worker ahead of schedule. The gap which lies here is the UNITE did not focus on the actual performance of the workers for which they were getting laid off.
 
MAITRI PORECHA  [2]
This article describes how AstraZeneca, a global pharmaceutical manufacturer, let go of 103 workers in its primary care division. It is claimed that employees of AZ India who refused to accept VRS had their employment wrongfully terminated. Unions representing medical representatives are among the workers who have lost their employment. The literature gap in this is that the company is that the company is appraising by telling that they are accelerating the efforts to transform the future of healthcare by unlocking the power of science but they didn’t quote the exact reason for laying off even after receiving a large no. of profits.
 
JIM WILSON [3]
According to this article, employees of the Thompson Hollywood hotel were wrongfully let go after it was observed that they were participating in coordinated protected labor on the property. Ten five members of the hospitality staff were among the two former employees who were let go. A US furniture company laid off 2700 workers at midnight on two days before Thanksgiving. One of the employees who was let go from the Thompson hotel is currently traveling to the Missouri Local Government Employee Retirement (LAGERS) to talk about the mistreatment, sexual harassment, and rude behaviour they experienced there. The literature gap in this article is basically the big MNC’s did not fire the employees on the basis of legal background and thus the employees suffered.
 
RACHNA MANOJKUMAR DHANRAJANI [4]
This article totally talks about the unusual laying off of 3200 employees by Twitter. The fired employees went to the court against the ‘wrongful termination’. Twitter claimed that the termination was by mistake and asking the employees to return back to the company.
The power of social media giant has reached out to dozens of employees who lost their job requesting them to come back. The literature gap which was found here is that why at the first place the company fired the employees if they wanted to call them back to the company.
 
 ADITYA RANA [5]
According to this article, Wipro chairman Rishad Premji received a ton of hate mail after firing 300 workers for "moonlighting." Eventually, the chairperson said that the 300 employees were fired by the company after it was discovered that they were covertly working for rival companies. The senior executive expressed his desire for greater transparency but said he is not opposed to employees taking on second jobs. The literature gap over here is that there were no significant mentioning of the agreement in which it states that no employee should work for another company simultaneously.
 
KARI PAUL [6]
According to this article, the US National Labor Relations Board (NLRB) was created during the epidemic, and two employees of the company named Amazon were wrongfully sacked for advocating for improved working conditions. More than twenty Amazon warehouse workers reportedly told NBC News that their rights had been infringed upon; nine of them said they had been sacked, reprimanded, or discriminated against for engaging in protected conduct, and three of them had filed NLRB complaints since the pandemic started.
The gap that existed was that, despite the employees' problems, the firm did not take care of the working circumstances.
 
FE Bureau [7]
According to this report, over 450 workers from Hindustan Unilever's Silvassa factory mounted a protest with their family outside the company's Mumbai headquarters to protest what they perceived to be unfair labor practices, inadequate pay, and cold shoulder unions. Furthermore, it claimed that when compared to competitors in India, Hindustan Unilever Limited paid its workers lower wages. A worker with twenty years of experience is paid approximately $30,000 per month by Nestle and Colgate, while HUL pays them approximately $14,000. Additionally, employees expressed their dissatisfaction with the fact that new hires receive around half of their pay. The literature gap in this is that the company HUL did not look after the problems of the workers even after they have problems regarding the company.
 
HARSHIT RAKHEJA [8]
In this article the businessman named Vikas Gupta alleged in an FIR that OYO wrongfully cancelled their contract with him during the pandemic and imposed penalties on him. The Federation of Hotel and Restaurant Associations of India has supported Gupta’s assertions. A representative for OYO claimed that the FIR filed against the company’s founder, Ritesh Agarwal, was an attempt to damage the company’s brand internationally. Gupta claims that after providing the necessary paperwork within the allotted time frame, the company sent him a new notice accusing him of criminal conspiracy and demanding that he pay INR 5 Cr in penalties rather than compensating him for illegally terminating the contract as originally intended. The gap over here is that the complaint promised the business that the other compliance paperwork will be presented in due course after only a handful were submitted. As a result to the venue partner’s failure to comply with OYO’s agreement and due diligence, and in spite of numerous requests and reminders, the contract was cancelled.
 
Hypothesis:
1.      Illegal termination of employees leads to unemployment.
2.      Illegal termination demotivates the employees to work efficiently in the future.
 
Types of illegal termination:
Illegal termination of employees refers to the unjustifiable or unlawful dismissal of an employee from their job. These terminations often violate labor laws, employment contracts, or anti-discrimination regulations. Here are several types of illegal termination:
1. Discriminatory Termination: This occurs when an employer fires an employee based on discriminatory factors such as race, gender, age, religion, disability, or sexual orientation. Any termination solely based on these protected characteristics violates anti-discrimination laws.
 
2. Retaliatory Termination: If an employer fires an employee in retaliation for actions such as whistleblowing, reporting harassment or discrimination, or filing a complaint against the company, it's considered illegal. Retaliatory termination violates labor laws protecting employees from such reprisals.
3. Breach of Contract: If an employment contract outlines specific conditions for termination—like a notice period, conditions under which termination is acceptable, or severance agreements—and the employer violates these terms, it constitutes illegal termination.
4. Violation of Public Policy: Firing an employee for reasons that violate public policy, such as refusing to perform an illegal act, exercising legal rights, or participating in lawful activities outside of work hours, can be considered illegal.
5. Constructive Dismissal: This occurs when an employer creates a hostile work environment or intentionally makes working conditions unbearable, forcing the employee to resign. Though not a direct termination, it's considered illegal as it essentially coerces the employee out of the job.
 
Establishment Of Healthy Corporate Culture In MNCs:
Establishing a healthy corporate culture within a multinational corporation (MNC) is essential for fostering a productive, harmonious, and innovative work environment. Such a culture encompasses shared values, beliefs, attitudes, and behaviours that guide employees' actions and decisions. Here are key ideas for creating and nurturing a robust corporate culture within an MNC.
Firstly, effective communication is fundamental. Encouraging open, transparent, and multi-directional communication channels facilitates understanding and collaboration among employees regardless of their geographical locations. Utilizing various communication tools and platforms helps bridge cultural and language barriers within the diverse workforce of an MNC. Regular town hall meetings, forums, and digital platforms can enable employees to voice their opinions, share ideas, and feel included in the company's vision and goals.
Secondly, promoting diversity and inclusion is pivotal. Embracing diversity in all its forms - including cultural, gender, age, and background diversity - fosters a rich tapestry of perspectives and experiences. In addition to raising staff morale, implementing programs and policies that value diversity and inclusivity also encourages team innovation and creativity. Implementing diversity training and mentorship programs can further reinforce a culture of respect and appreciation for differences among employees.
Thirdly, emphasizing employee well-being is crucial. Providing comprehensive wellness programs, mental health support, and work-life balance initiatives demonstrates a company's commitment to its employees' holistic health. Flexible work arrangements, wellness stipends, and mindfulness workshops are some ways to prioritize employee well-being and reduce stress, thereby boosting overall productivity and job satisfaction.
Fourthly, leading by example from top management is indispensable. Executives and leaders within the organization need to embody the values and behaviors advocated by the corporate culture. When leaders demonstrate integrity, empathy, and a commitment to the company's values, it sets the tone for the entire workforce. Encouraging a culture of accountability and recognizing and rewarding employees who exemplify the desired cultural traits further reinforces these values throughout the organization.
Additionally, fostering a culture of continuous learning and development is essential. Providing opportunities for skill enhancement, professional growth, and learning new technologies ensures that employees feel invested in and valued by the company. Offering mentorship programs, educational subsidies, and access to online learning platforms are effective ways to encourage ongoing learning within the workforce.
Lastly, regularly assessing and evolving the corporate culture is vital. Conducting surveys, feedback sessions, and culture audits enable the company to gauge employee satisfaction, identify areas for improvement, and adapt to changing needs and trends. A culture that is flexible and adaptable can better align with the evolving dynamics of the global business landscape.
In conclusion, cultivating a healthy corporate culture within an MNC requires a comprehensive approach that prioritizes communication, diversity, well-being, leadership, learning, and adaptability. When these elements are effectively integrated and nurtured, they contribute to a thriving workplace environment where employees feel valued, engaged, and motivated to contribute their best efforts towards the company's success.
 
Labour law regulations of various countries:
Labour laws and regulations surrounding employee termination vary significantly across countries, reflecting diverse cultural, economic, and legal frameworks. Multinational Corporations (MNCs) operating in different regions must navigate these intricacies, often leading to scenarios where violations occur due to differences in interpretation or non-compliance. Here's an overview across several regions:
United States:
In the US, employment is generally at-will, allowing employers to terminate employees without cause or notice. However, violations can occur if terminations breach anti-discrimination laws, such as firing based on race, gender, or disability, or violating contractual agreements regarding termination procedures or severance pay.
European Union:
EU member states often prioritize strong worker protections. Many countries require just cause for termination, and strict procedures must be followed. Violations may involve breaching notice periods, disregarding collective bargaining agreements, or terminating employees without a valid reason.
China:
Labour laws in China heavily favor employee protection. Companies must provide just cause for termination, adhere to notice periods, and follow specific procedures. Violations might include wrongful dismissals, not providing adequate notice, or terminating employees due to their involvement in labor unions.
 Middle East:
Labour laws here vary greatly across countries. In some Gulf states, termination often requires government approval, especially for foreign workers. Violations can stem from dismissing employees without adhering to required procedures or not providing necessary benefits upon termination.
Africa:
Labour laws in African countries can differ significantly. Some nations emphasize worker protection, requiring just cause for termination, notice periods, and severance pay. Violations might involve dismissing employees without following legal procedures or not providing entitled compensation.
 
Potential Violations by MNCs:
MNCs, while navigating these varied regulations, might inadvertently or intentionally violate local laws. This can occur due to ignorance of specific requirements in a region, differing interpretations, or a deliberate choice to prioritize cost-cutting measures over legal compliance.
Examples of violations by MNCs may include:
1. Wrongful Dismissals: Terminating employees without valid reasons or not following mandated procedures.
2. Discriminatory Practices: Firing based on protected characteristics, like race, gender, or religion.
3. Bypassing Collective Bargaining Agreements: Disregarding negotiated terms with labor unions or failing to provide required benefits upon termination.
To mitigate these risks, MNCs must invest in robust legal counsel familiar with local laws, provide comprehensive training to HR teams, and conduct regular compliance audits to ensure adherence to labour regulations across various jurisdictions.
 
Preventive Measures:
Multinational Corporations (MNCs) can adopt a multifaceted approach to prevent illegal terminations and foster fair employment practices across their global operations. Firstly, establishing a robust framework that prioritizes compliance with local labor laws and regulations in each operating country is fundamental. This entails conducting thorough research and staying updated on the nuanced legal requirements unique to each region. Simultaneously, implementing comprehensive training programs for all levels of management and HR staff is crucial. These sessions should focus on educating employees about local labor laws, emphasizing the significance of fair employment practices, and elucidating the company's commitment to upholding these standards. Moreover, instituting clear and standardized termination procedures aligned with the legal requirements of each jurisdiction is imperative. MNCs should develop transparent policies that outline the circumstances under which terminations can occur, ensuring adherence to notice periods, severance pay, and other entitlements mandated by local laws. Consistency in implementing these procedures across all subsidiaries or branches globally is essential to avoid discrepancies that might lead to legal challenges.
To further fortify fair employment practices, fostering an inclusive and diverse workplace culture is paramount. MNCs can actively promote diversity and inclusivity through recruitment, advancement opportunities, and training programs. Embracing diversity not only aligns with ethical considerations but also contributes to a more dynamic and innovative workforce. Engagement with local stakeholders, including labor unions and government bodies, can significantly contribute to maintaining compliance and fostering a positive relationship with the community. Collaborating with these entities can provide valuable insights into local labor dynamics, potentially preventing conflicts and facilitating a better understanding of regional labor laws and employee rights.
Additionally, implementing robust internal mechanisms for grievance redressal and conflict resolution is essential. MNCs should establish channels that allow employees to voice concerns without fear of reprisal. This empowers employees to report any potential violations or unfair practices they encounter, ensuring timely resolution and demonstrating the company's commitment to addressing employee concerns. Regular audits and assessments of HR practices across global operations can serve as preventive measures against illegal terminations. These audits can identify any deviations from established policies, enabling swift corrective actions to ensure compliance.
Ultimately, MNCs must embed a culture of ethical conduct and compliance within their organizational DNA. This involves not only following legal mandates but also embracing a proactive approach to promoting fairness, equity, and respect for employee rights across their diverse international footprint. Such a commitment to ethical practices not only mitigates legal risks but also fosters a positive corporate image, attracting and retaining top talent in a highly competitive global landscape.
 
Case Studies:
here are three real-life case studies of illegal terminations by multinational corporations (MNCs) in India and the lessons learned from these cases:
 Case Study 1: Nokia India
 Issue: In 2014, Nokia's Chennai plant faced a shutdown due to a tax dispute with Indian authorities. The company terminated thousands of employees, citing the closure. However, the termination was deemed illegal as Nokia had failed to comply with local labor laws regarding severance pay and notice periods.
 Lesson Learned: MNCs operating in India must diligently adhere to local labor laws, including providing adequate notice periods and fulfilling severance obligations. Failure to comply can lead to legal battles and tarnish the company's reputation.
Case Study 2: IBM India
Issue: In 2019, IBM India faced allegations of illegal terminations when the company laid off around 300 employees without following proper procedures or providing adequate notice. This led to protests and legal action by the terminated employees.
Lesson Learned: MNCs must ensure that terminations follow due process, including giving employees proper notice and adhering to legal requirements, to avoid potential legal repercussions and maintain a positive relationship with their workforce.
 Case Study 3: General Motors India
Issue: In 2017, General Motors (GM) faced criticism for its abrupt shutdown of its manufacturing plant in Gujarat, resulting in the termination of around 1,100 employees. The termination was contentious due to alleged violations of labor laws and inadequate compensation to the affected workers.
Lesson Learned: MNCs must engage in transparent communication and provide fair compensation or alternatives to affected employees during shutdowns or layoffs. Compliance with labor laws regarding compensation and notice periods is crucial to prevent legal disputes and maintain goodwill.
Key Takeaways:
1. Compliance with Local Laws: MNCs must prioritize compliance with India's labor laws, including notice periods, severance pay, and termination procedures, to avoid illegal terminations and subsequent legal entanglements.
2. Transparent Communication: Clear and open communication with employees, especially during layoffs or closures, is crucial to mitigate discontent and potential legal actions. Providing fair compensation and support during terminations is essential.
3. Due Process in Termination: MNCs should strictly follow due process when terminating employees, ensuring that proper procedures are followed, and legal obligations are met to prevent accusations of illegal terminations.
These case studies underscore the significance of understanding and adhering to local labor laws, fostering transparent communication, and maintaining ethical practices in handling employee terminations for MNCs operating in India. Adherence to these principles not only mitigates legal risks but also upholds the company's reputation and sustains a positive relationship with its workforce and the community.
 
Government Regulations:
In India, the legal framework governing employment and protecting workers' rights is comprehensive, aiming to safeguard employees from arbitrary or unjust termination. Multinational Corporations (MNCs) operating in India must adhere to these regulations to avoid illegal terminations and ensure fair treatment of their workforce.
 
 Legal Regulations:
1. Industrial Disputes Act, 1947: This act outlines the procedures for terminating employees in companies with over 100 employees. It mandates the necessity of obtaining government approval for layoffs, retrenchment, or closure of establishments. Companies must provide valid reasons and compensation while adhering to notice periods and due process.
2. The Shops and Establishments Act: Each state in India has its Shops and Establishments Act, which includes provisions related to working hours, rest intervals, overtime, leave policies, and termination procedures. MNCs need to comply with these state-specific laws.
3. Labour Laws on Termination: Specific labor laws exist for various industries, such as the Factories Act, Mines Act, and others, stipulating safety standards, working conditions, and termination procedures applicable to these sectors.
4. Maternity Benefits Act: This act protects the employment of women during pregnancy and after childbirth, prohibiting termination during this period.
5. Prevention of Sexual Harassment at Workplace: MNCs are required to comply with laws ensuring a safe workplace for employees and have mechanisms in place to address sexual harassment complaints.
 
Illegal Termination by MNCs:
MNCs in India might violate these regulations through various actions, such as:
1. Arbitrary Termination: Firing employees without adhering to due process, valid reasons, or required notice periods.
2. Retrenchment Without Government Approval: Not obtaining necessary government approvals for layoffs or retrenchments in establishments with over 100 employees, as mandated by the Industrial Disputes Act.
3. Violating Contractual Terms: Breaching employment contracts or agreements regarding termination procedures, severance pay, or notice periods.
4. Discriminatory Practices: Termination based on factors like race, gender, religion, or disability, which contravene anti-discrimination laws.
5. Ignoring Maternity Protection: Unlawfully terminating female employees during pregnancy or maternity leave, violating the Maternity Benefits Act.
Ramifications and Remedies:
Illegal terminations can result in legal repercussions, including reinstatement of employees, payment of compensation or back wages, or facing penalties imposed by labor authorities or courts. Additionally, such actions can damage the company's reputation and lead to a loss of trust among employees and the public.
 Compliance Measures:
To prevent illegal terminations, MNCs operating in India must prioritize:
1. Understanding and Adhering to Laws: Thoroughly understanding and complying with the diverse labor laws across states and industries where they operate.
2. Establishing Transparent Policies:
 Implementing clear and standardized termination policies that align with legal requirements and ensuring consistent application across the organization.
3. Employee Education and Training: Conducting regular training sessions to educate employees, especially HR personnel and managers, on legal requirements, fair termination practices, and anti-discrimination policies.
4. Regular Compliance Audits: Periodic audits of HR practices to ensure adherence to laws and regulations, mitigating the risk of illegal terminations.
By proactively adhering to Indian labor laws, promoting ethical practices, and fostering a culture of compliance and fairness, MNCs can not only prevent illegal terminations but also cultivate a positive and legally sound work environment that respects employee rights and supports sustainable business growth.
 
Conclusion:
In conclusion, the illegal termination of employees by MNCs is a multifaceted issue that transcends mere business decisions. It highlights the clash between profit-driven motives and ethical responsibilities. Resolving this problem demands a concerted effort from various stakeholders – governments, corporations, employees, and civil society – to ensure that fundamental human rights are respected, upheld, and safeguarded within the realm of employment. Only through collective action and a commitment to ethical conduct can a fair and just working environment be established for all. The illegal termination of employees by multinational corporations (MNCs) is a complex issue with far-reaching implications for individuals, societies, and the business world. It represents a breach of ethical, legal, and moral responsibilities, often resulting in profound consequences for the affected workers and the company itself. At the heart of this matter lies the violation of labor laws and human rights. MNCs, in their pursuit of cost-cutting measures or restructuring, sometimes resort to unlawful termination practices. This could involve layoffs without due process, ignoring contractual agreements, discrimination based on race, gender, or age, or dismissing employees for whistleblowing or unionizing efforts. Such actions not only contravene local employment regulations but also defy international labor standards. The repercussions of these illegal terminations are profound. For the employees directly impacted, it means abrupt loss of livelihood, financial instability, emotional distress, and a sense of injustice. Families dependent on these individuals also suffer, facing hardships and uncertainty. Furthermore, the broader community may experience economic strain due to increased unemployment and social welfare burdens.For the MNCs involved, the fallout from illegal terminations extends beyond legal ramifications. Reputational damage tarnishes their brand image, affecting consumer trust and investor confidence. Such actions can lead to public outcry, boycotts, and regulatory sanctions, impacting their bottom line in the long run. Addressing this issue requires a multi-faceted approach. Governments and international bodies must enforce and strengthen labor laws to protect workers' rights, ensuring stringent penalties for MNCs that violate these regulations. Enhanced transparency and oversight mechanisms within corporations can also mitigate these unethical practices. Moreover, fostering a culture of corporate social responsibility (CSR) and ethical business conduct is imperative. MNCs must prioritize fair treatment of their employees, valuing their contributions and providing avenues for grievances to be heard and addressed. Employees themselves can also play a role by advocating for their rights, unionizing where possible, and being aware of legal protections afforded to them. Civil society, including NGOs and labor advocacy groups, can act as watchdogs, raising awareness and holding MNCs accountable for their actions. A healthy environment should be given to the employees to prevent illegal terminations and that’s why all the regulations must be followed.  

[1] Wrongful termination of employees by Virtusa : Multinational Firm Virtusa Corp Illegaly Retrenching 1000s
of Workers, Says IT Union, 16 Dec 2022
https://www.newsclick.in/TN-multinational-firm-virtusa-corp-illegally-retrenching-1000-workers-IT-union

Article Information

ILLEGAL TERMINATION OF EMPLOYEES BY Mncs: ESTABLISHMENT OF HEALTY CORPORATE ENVIRONMENT

Authors: GAURANGI TANDON, KHUSHBOO MALIK

  • Journal IJLRA
  • ISSN 2582-6433
  • Published 2024/04/17
  • Issue 7
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