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Such practice is against labour laws. Employees should approach the Labour Forum to get suitable remedy. No employer can sack the employees who are coming under the purview of Labour Laws without complying the statutory provisions under I.D. Act. Please ask the employees to go to relevant forum so as to begin conciliatory proceedings against the company.
It is true that the company has not followed the basic principles of retrenchment as provided in section 25FF/ 25N of the Industrial Disputes Act. Before filing suit in the Labour Court, you should first approach the District Labour Officer and try to solve the issue by means of a conciliation. If it fails, the matter will automatically go to Tribunal for adjudication.