Shaily Solankee
Dispute Resolution

MEDIATION IN WRONGFUL TERMINATION OF EMPLOYEMENT

By Shaily Solankee

Introduction

Wrongful termination occurs when an employer violates an employment contract or law when firing an employee. These terminations can happen because of harassment, discrimination or retaliation, among other reasons.

Wrongful termination might happen due to discrimination, breach of contract or other factors.

If the wrongful termination of employment is done in violation of any provisions of labour laws, the Industrial Disputes Act, 1947¹, the Workmen's Compensation Act, 1923² and State Shops and Establishments Acts³ come into play.

Mediation in Wrongful Termination of Employment

Mediation is a confidential process that enables the parties involved in legal disputes to communicate with one another and work towards settlement.

Mediation is beneficial for both the sides because -

Efficient resolution: Mediation can enable parties to quickly resolve their disputes, bypassing the lengthy wait for a trial date that can span several years.
Cost-effective: By engaging in mediation, parties can save substantial amounts of money. Resolving a dispute earlier in the litigation process helps mitigate the expenses associated with trial preparation and attendance.
Confidentiality: Mediations and the resulting settlements are confidential. This aspect is particularly appealing to parties who are apprehensive about the public exposure and release of court decisions.
Preserving relationships: Mediation focuses on fostering open communication and understanding between the parties. It can help maintain or even repair relationships, which is particularly beneficial when the parties have ongoing interactions.

Conclusion

Although mediators serve a crucial role in facilitating these negotiations, the mediator cannot compel the parties to reach a settlement and they are unable to offer legal advice. Mediators can help the parties come to a creative and flexible solution. Mediation is not binding.

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