Financial Crisis Cannot Compel an Employee to Work, Resignation Rejection Amount to Bonded Labour: Kerala High Court.
This Court judgment will likely serve as a guiding precedent for future disputes involving resignation, employee autonomy, and constitutional protections against forced labour. It underscores that in India’s labour law framework, the dignity and freedom of the worker remain paramount.
In a striking judgment, the Kerala High Court has clarified that no employer can compel an employee to continue working against their will, even in times of financial crisis. In Greevas Job Panakkal vs. Traco Cable Company Limited (WP(C) No. 5132 of 2025, decided 13 February 2026), the Court held that refusing to accept a valid resignation amounts to “bonded labour,” prohibited under Article 23 of the Constitution.
The case involved a PSU that rejected the resignation of its company secretary, citing financial distress, and issued disciplinary notices to force his return. The Court rejected this stance, ruling that resignation is a unilateral right of the employee, subject only to contractual obligations like notice periods or pending misconduct inquiries. Financial hardship, it stressed, cannot override constitutional protections.
By equating forced continuance in employment with bonded labour, the judgment expands the scope of Article 23 beyond traditional manual labour contexts. It underscores that dignity and autonomy in employment are non-negotiable, whether in public or private sectors. Employers must now ensure resignation policies respect constitutional rights, while employees gain judicial assurance that their freedom to exit employment cannot be curtailed by economic expediency.
This ruling is a reminder that labour law is ultimately about human freedom. Employment rests on consent, and once that consent is withdrawn, coercion has no place in a constitutional democracy. For further insights into the evolving workplace paradigm, visit
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