The Sivika Tech. Ltd. is an IT-enabled services company established in 2012 at Gurgaon. The company employed 550 workers, including 350 software developers and technical staff (monthly salaries ₹ 30,000–₹ 80,000), 150 ad

The Sivika Tech. Ltd. is an IT-enabled services company established in 2012 at Gurgaon. The company employed 550 workers, including 350 software developers and technical staff (monthly salaries ₹ 30,000–₹ 80,000), 150 administrative and support staff (monthly salaries ₹ 8,000–₹ 18,000), 50 managerial and supervisory personnel (monthly salaries ₹ 60,000–₹ 1,50,000). Due to global economic recession, Covid-19 outbreak and loss of major client contracts, the company faces severe financial distress in January 2021. The Board of Directors decides to implement cost cutting measures including workforce reduction, salary restructuring, and operational downsizing. The management identifies 120 permanent employees for retrenchment (employed since 2013), including: 50 junior developers (average service: 3 years, average monthly salary : ₹ 35,000), 40 administrative staff (average service: 5 years, average monthly salary: ₹ 12,000), 30 senior developers (average service: 7 years, average monthly salary: ₹ 55,000) without stating the reason in the termination letter. The company issued termination letters on 1st October, 2022 effective immediately, offering 15 days' salary for every completed year of service, one month's salary as notice pay, no prior consultation with workers or trade union. Affected permanent employees approach the Regional Labour Commissioner alleging illegal retrenchment. During the retrenchment process, these 120 staff members went on strike immediately receiving the termination letter on 1st October, 2022 without informing to the management. These 120 staff members did not file their complaint to the Works Committee and the matter was also not referred to the Conciliation Officer. They directly filed the matter before the Industrial Tribunal on 1st January, 2023, the Industrial Tribunal passed an Award on 25th August 2025 without holding a proper enquiry. While passing an Award it was also found that the Labour Audit is pending since last two years, the Labour Inspector have not audited the company regarding various statutory compliances, the company license was also due for renewal and found irregularities in labour compliances. But during the pendency of proceedings, the management changed some service conditions which were unconnected with the dispute, without serving the notice to the workers. The management made the changes in their standing orders too without informing to the workers, and to the appropriate authority. The management made the alteration in the payment of subsistence allowance, the change was that if any workmen is suspended by the employer where the investigation or inquiry and the matter is pending before the court only nominal charges i.e. only 30 percent, will be paid to the workmen during the pendency of the proceedings. When the workers got to know about the changes they threatened to the management and filed multiple cases against the management. Sivika Tech. Ltd. recently retrenched a group of employees with immediate effect, failing to serve prior notice to the affected workers or to the appropriate government. Based on the Industrial Relations Code, 2020: Determine whether this act of retrenchment by the company is legal or illegal, why?