Employee Employment Protection and Job Security Policy
“Workers build companies; companies must help secure the future of their workers.”
India is witnessing rapid expansion of the corporate and private sectors. The growth of industries, companies and businesses has created employment opportunities for millions of citizens. However, in many cases, employees who have served an organisation honestly and for many years face the risk of suddenly losing their jobs, particularly after reaching the age of 50.
In some cases, companies continue to benefit from the experience and contribution of employees for many years and subsequently terminate their employment without a genuine and justifiable reason, replacing them with new employees willing to work for lower salaries for substantially similar work.
Such termination can suddenly eliminate the employee’s income. At the same time, as the employee becomes older, finding another suitable job becomes more difficult. Even when a new job is found, the employee may be forced to accept substantially lower remuneration than the salary earned in the previous employment.
The Sanvidhan Loktantra Party considers this an important social and economic issue concerning employment security, dignity of work and the financial security of working families.
Therefore, the Party proposes the following Experienced Employee Employment Protection and Job Security Policy.
1. Objectives of the Policy
The principal objectives of this policy are:
- To protect long-serving employees from sudden and unjustified unemployment.
- To provide enhanced employment security to experienced employees, particularly those above 50 years of age.
- To discourage the practice of removing experienced employees merely to replace them with new employees at substantially lower salaries.
- To prevent the sudden loss of income from causing severe financial hardship to employees and their families.
- To ensure that the experience and skills of senior employees continue to contribute to India’s economic development.
- To promote a fair balance between the legitimate interests of employers and the employment security of workers.
2. Employees Covered Under the Policy
The policy will cover eligible employees and workers employed by companies and other covered establishments.
Depending upon the nature of employment and the applicable law, the policy may cover:
- Permanent employees;
- Regular employees;
- Eligible contractual employees; and
- Other legally recognised categories of employees.
The detailed eligibility conditions will be prescribed by law.
Directors and persons holding ownership or decision-making management positions in a company will not be covered by this employee-protection scheme.
3. Special Protection for Employees Above 50
Before terminating the employment of an employee who has attained the age of 50 years or above, a covered employer will be required to follow a fair and transparent procedure, including, where applicable:
- Providing written reasons for the proposed termination;
- Giving the employee a reasonable opportunity to respond;
- Establishing the genuine necessity for the termination;
- Examining whether redeployment, reassignment, retraining or alternative employment within the organisation is possible.
The mere availability of a new employee willing to perform substantially similar work at a lower salary should not, by itself, constitute a sufficient justification for terminating an experienced employee.
4. Income Protection in Case of Unjustified Termination
Where the competent authority determines, after due process, that an employee’s employment was terminated without a valid, genuine and established reason, the employee will be entitled to monthly Employment Protection Allowance equivalent to at least 50% of the employee’s last drawn salary, subject to prescribed maximum period, eligibility conditions and statutory limits.
The allowance will continue until the employee obtains suitable alternative employment, subject to the maximum period prescribed under the applicable law.
This mechanism is intended to provide temporary income security while the employee searches for suitable employment.
5. Protection When a New Job Is Obtained
Equal or Higher Salary
If the employee obtains alternative employment carrying remuneration equal to or higher than the salary received from the previous employer, the Employment Protection Allowance will cease from the date the new employment begins.
Lower Salary
If the employee obtains employment at a lower salary, the employee may be entitled to Wage Gap Compensation, calculated on the basis of the actual difference between the previous remuneration and the new remuneration, subject to the limits prescribed by law.
This will ensure that an experienced employee is not forced to suffer the entire financial loss merely because the only available employment offers substantially lower wages.
6. Special Protection Until the Age of 60
A special employment-security mechanism will be created for eligible employees between the ages of 50 and 60 years.
Where an employee makes genuine efforts to obtain suitable alternative employment but is unable to secure employment at an appropriate level of remuneration, the Employment Protection Scheme may continue until the employee reaches the age of 60, subject to prescribed eligibility conditions and maximum limits.
Upon attaining the age of 60, the employee may be entitled, subject to statutory conditions, to receive a one-time financial assistance of up to 75% of the remaining eligible protection amount.
The precise formula, maximum amount, eligibility conditions and funding mechanism will be determined by law.
7. Protection Against Replacement by Lower-Paid Employees
If a company:
- terminates a long-serving employee;
- subsequently fills the same or substantially similar position;
- appoints a new employee within a prescribed period; and
- offers substantially lower remuneration for substantially similar work,
the circumstances of the termination may be subject to an independent review.
If it is established through due process that the principal purpose of the termination was merely to reduce labour costs by replacing the experienced employee with a lower-paid employee, the employer may be required to pay additional compensation and may be subject to penalties prescribed by law.
9. Experienced Employee Protection Fund
The Party proposes the establishment of an Experienced Employee Protection Fund under an appropriate statutory framework.
The Fund may be supported through:
- Prescribed contributions from companies above a specified size or threshold;
- Initial government contribution;
- Employer contributions as prescribed by law; and
- Other legally permitted sources.
The objective will be to create a sustainable financial mechanism for employment protection rather than placing the entire financial burden of every case directly upon the government.
10. Priority for Re-Employment
Where an employee has been retrenched or terminated for a legitimate business reason and the employer subsequently decides to recruit for the same or substantially similar position within a prescribed period, eligible former employees should receive preferential consideration for re-employment, subject to applicable qualifications and statutory conditions.
The Sanvidhan Loktantra Party proposes strengthening the principle of re-employment preference so that experienced employees are not unnecessarily excluded when the same employment opportunity becomes available again.
11. Skill Renewal Programme for Employees Above 50
Financial assistance alone is not sufficient.
The Government will establish a dedicated:
“50+ Skill Renewal Programme”
The programme may provide training in:
- New and emerging technologies;
- Digital skills;
- Basic use of Artificial Intelligence;
- Accounting and office technology;
- Industry-specific skills;
- Entrepreneurship;
- Consultancy;
- Mentoring; and
- Other employment-oriented skills.
The objective will be to help experienced employees adapt to changing technology and employment requirements rather than treating age as a reason for exclusion from the workforce.
12. National Utilisation of Experienced Professionals
Turning 50 does not mean that a person’s professional ability has ended. Experience is a national economic asset.
The Government will establish an Experienced Professionals Employment Exchange to connect experienced professionals with suitable employment opportunities.
A dedicated digital platform may connect:
- Experienced professionals;
- Companies;
- MSMEs;
- Start-ups;
- Government institutions;
- Consultancy organisations; and
- Other employers seeking experienced human resources.
This will help convert accumulated professional experience into productive economic value.
13. Prevention of Age-Based Employment Discrimination
Appropriate legal safeguards will be introduced to prevent qualified persons from being denied employment solely because of age or being unnecessarily offered substantially lower remuneration for substantially similar work on the basis of age.
The policy will promote the principle that:
“50 is not the end of employment; 50 is the beginning of a new strength of experience.”
14. Balance Between Employees and Companies
The objective of the Sanvidhan Loktantra Party is not to create unnecessary difficulties for businesses or industries.
Our principle is:
Industries must grow and companies must earn profits; but the future of the employees who contribute to creating those profits must also be protected.
Workers and businesses are not natural opponents. Both are important pillars of India’s economic development. A successful economy requires:
Strong Industries + Sustainable Businesses + Skilled Workers + Employment Security + Fair Compensation.
Our Position
The Sanvidhan Loktantra Party believes that an employer may have the legitimate right to restructure its workforce in accordance with law, but an employee who has devoted years of service to an organisation should not be left without reasonable economic protection merely because the organisation decides to replace experienced labour with cheaper labour.
India needs not only: Job Creation ..but also: Job Security + Fair Compensation + Skill Renewal + Dignity of Work
Our employment policy therefore seeks to create a system in which business growth and employee security develop together.
Our Commitment
“Respect Experience — Protect Employment — Secure Families — Build a Stronger India.”
Sanvidhan Loktantra Party
This is a policy proposal of the Sanvidhan Loktantra Party. Its implementation will require appropriate legislation, rules, institutional mechanisms and financial arrangements by the Government of India and/or the competent governments.
Why This Policy Is Different
Existing labour law provides certain protections against retrenchment, including notice and retrenchment compensation, and provides preference for re-employment in specified circumstances.
However, a worker who loses a long-term job may still face a serious gap between the compensation received at termination and the income required to support the worker and the worker’s family while searching for suitable employment.
The Sanvidhan Loktantra Party therefore proposes to develop a broader Employment Security Framework that goes beyond one-time termination compensation.
Our proposed framework is based on four principles:
1. Protection of Income
An eligible employee who is unjustifiably terminated should not be left without income immediately after losing employment. Subject to statutory conditions, a continuing Employment Protection Allowance would provide temporary financial support.
2. Protection Against Forced Wage Reduction
If an experienced employee obtains another job but has to accept substantially lower remuneration, the proposed Wage Gap Compensation mechanism would provide protection against an immediate and excessive fall in income, subject to prescribed limits.
3. Special Protection for Experienced Employees
Employees above 50 years of age often face greater difficulty in obtaining comparable employment. The policy therefore proposes additional protection, skill renewal and employment-support mechanisms for the 50–60 age group.
4. Protection of Experience
Experience accumulated over decades should not be treated as an economic liability.
The proposed 50+ Skill Renewal Programme and Experienced Professionals Employment Exchange would help experienced workers remain productive and connected to new employment opportunities.
The Principle
The objective is not to prevent genuine business restructuring or legitimate termination.
The objective is to ensure that:
A company should have the freedom to manage its business, but an employee who has contributed years of productive service should not be left without reasonable economic protection merely because a cheaper replacement is available.
The policy therefore seeks to create a balance between:
Business Freedom + Employment Flexibility + Employee Security + Dignity of Work.