In a significant judgment, the Supreme Court of India on 22 August 2024, has emphasized that termination orders must be fair, transparent, and free from stigma. The court held that the mere absence of background information in a termination order does not make it non-stigmatic, and the court can examine the context to determine the true nature of the termination.

The court set aside the Madhya Pradesh High Court’s judgment upholding the termination of an Assistant Project Coordinator, citing that the termination order was a culmination of two show cause notices and had adverse consequences for the appellant.

Key takeaways:

– Termination orders must be fair, transparent, and free from stigma.
– The court can examine the context to determine the true nature of the termination.
– Due process must be followed in employment matters.

This ruling reinforces the importance of fair treatment and due process in employment matters. Employers must ensure that termination orders are legally compliant, fair, and transparent to avoid stigma and adverse consequences for employees.

Read the full judgment in Civil Appeal No. 9758 of 2024, Swati Priyadarshini v. State of Madhya Pradesh & Ors.