Parliament Question: Termination from Employment

GOVERNMENT OF INDIA MINISTRY OF LABOUR AND EMPLOYMENT LOK SABHA UNSTARRED QUESTION NO. 94 TO BE ANSWERED ON 20.07.2026 TERMINATION FROM EMPLOYMENT 94. PROF. SOUGATA RAY: Will the Minister of LABOUR AND EMPLOYMENT be pleased to state: (a)whether the Government has received complaints regarding an increase in termination, retrenchment or lay-offs of employees following the implementation of the new Labour Codes; (b)if so, the details thereof, sector and State/UT-wise; (c)whether the Government has assessed the impact of the Labour Codes on job security and workers' rights and if so, the details thereof; (d)the measures taken by the Government to prevent arbitrary termination of employees and ensure compliance with labour laws; (e)whether the Government has noticed that a company terminated thousands of employees without issuing proper notice; and (f) if so, the details thereof? ANSWER MINISTER OF STATE FOR LABOUR AND EMPLOYMENT (SUSHRI SHOBHA KARANDLAJE) (a) to (f): “Labour” as a subject falls in the Concurrent List. Based on their respective jurisdiction as demarcated in the Industrial Relations Code, 2020, Central and State Governments take actions to address the issues of the workers and protect their interests. In the establishments that lie in the jurisdiction of Central Government, the Central Industial Relations Machinery (CIRM) is entrusted with the task of maintaining good industrial relations and protecting the interest of workers including in matters relating to termination, retrenchment or lay-off and its prevention. The Industrial Relations Code, 2020 contains various provisions to safeguard workers' rights and job security, including statutory safeguards in the form of mandatory notice period, retrenchment compensation and provision for retrenched workers to be given preference in re-employment are applicable for all retrenched Contd..2/-:: 2 :: workers. The Code also introduces Workers Re-skilling fund for training of retrenched workers for the first time with a view to providing financial support to retrenched workers to utilize that amount for his re-skilling. The Negotiating Unions/Negotiating Councils have been brought under the statutory provisions to strengthen collective bargaining. *****