Employer liable to pay compensation to employee terminated without enquiry: Karnataka HC

Karnataka High Court in VM Ware Software India Pvt. Ltd. vs. Ashis Kumar Nath W.P. No. 8149/2021, partially upheld the order passed by labour court setting aside the dismissal/termination order on the ground that employer did not conduct domestic enquiry before employee’s termination / dismissal and hence the said action was violative of principle of natural justice. The Court, further awarded compensation to the employee to the tune of INR 10,00,000/- (Indian Rupees Ten Lakhs) to mitigate the loss caused to him. However, on the aspects of reinstatement, full back wages continuity of service, the Court while set aside the order of the labour court ordering reinstatement and held that employee cannot be reinstated or paid back wages on the ground that employee’s actions (he wrote threatening e-mails to the management of the employer, etc.) resulted in loss of confidence of the employer.

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