Having a franchisee of Blue Dart Courier . Her Father was running the same business for last 28 years and after his death for the last 5 years my niece took over the business. Some of the staff was misbehaving with her which she opposed. As a personal ego they illegally terminated her business without giving any reason and are appointing other franchisee. Her 22 employees all of a sudden are jobless. There is clause in the contract that they can terminate by giving a notice of one month without any reason. Can they remove a franchisee of last 28 years without giving any reason just because of the said clause in the contract and make 22 employees jobless all of a sudden. Is there any remedy ? Can she get a stay ?
Can the employees approach the labour court
terms of contract are sacrosanct
2) as per contract one month notice has to be issued
3) you have been given one month notice
4) Blue dart is at liberty to terminate agreement for material breach of contract as for instance failure to meet targets
5) she should file suit and obtain a stay as no reasons have been given for termination
franchisee should file suit seek stay of termination as no reasons were given for termination
further no opportunity was given to respond to allegations
Hello,
If the termination seems unjust, a legal notice can be sent to the franchisor challenging the termination and requesting a detailed explanation. This notice could include a demand for reinstatement or compensation for the abrupt termination.
The notice should also raise concerns about the impact on the 22 employees who are now jobless, and whether the franchisor considered this before taking such a drastic step.
The employees come under the franchisee and not the under franchiser hence the employees cannot sue the Franchiser under labor law.
If the terms and conditions of the Franchise agreement had been breached or violated then the Franchiser can very well proceed legally to terminate the contract as per the clauses stated therein.
If the termination of the agreement is found to be illegal and against natural justice the franchisee can very well approach court with a suit for permanent injunction to restrain the franchiser from arbitral termination and also seek to set aside the orders of termination of the contract.
The employees can vent out the grievances against the employer i.e., the Franchisee and not against the Franchiser.
Whereas the agreement itself has been terminated for the reasons stated therein then the employees will not be eligible for any relief since the company itself is not existing.
Dear Client,
The franchise agreement’s clause allowing termination with one month's notice without providing any reason is likely enforceable under contract law, provided it does not violate any statutory provisions. If your niece can prove that the termination was done in bad faith or due to personal vendetta rather than legitimate business reasons, she may have grounds to challenge the termination. Your niece can file a civil suit seeking an injunction to stay the termination. The 22 employees who suddenly lost their jobs may have the right to approach the Labour Court under the Industrial Disputes Act, 1947 if they are classified as "workmen." They can challenge the termination of their employment as unfair labour practice, especially if they were not given proper notice or compensation. If the employees were terminated without just cause or proper procedure, they could claim unfair dismissal and seek reinstatement or compensation. Your niece should consult with a business lawyer to explore these options and to take appropriate legal action. Should you require any further clarification, please do not hesitate to contact us.
- As per the High Court , a contract cannot be debarred or blacklisted without a prior notice or opportunity of hearing even in cases where there is a provision in the contract for deemed debarment in case of termination of the contract.
- Hence, a written notice to the other party of the contract is mandatory for the cancellation of the contract.
- Since, she has not given any notice as per the said clause of contract , then said termination is not valid.
- You can send her a legal notice for re-instate the franchisee and to pay the damages for the loss of business.
- Further, if no positive response, then file a case before the Court.
