Risks for companies to fire employees for not working from the office

In 2024, 90 percent of businesses will apply 'work from office', according to a Resume Builder report that polled over one thousand business executives. Additionally, almost thirty percent of businesses plan to fire workers who fail to meet their back-to-office policies.

Risks for companies to fire employees for not working from the office, how to manage if any.

Organizations worldwide are becoming increasingly serious about removing the freedom and benefit of “working from home” in response to the post-pandemic blues. In addition to issuing memoranda and warnings, an increasing number of businesses are going over and above by delaying raises or promotions, or even going so far as to issue a “termination order,” or Brahmastra!

In 2024, ninety percent of businesses will apply ‘work from office’ mandate , according to a Resume Builder report that polled over one thousand business executives. Additionally, almost thirty percent of businesses plan to fire workers who fail to meet their back-to-office policies.

However, in the post-pandemic scenario, employers will find it difficult to strictly enforce the ‘work from office‘ mode on every employee, as this would essentially break the comfort zone and abruptly end the workplace autonomy that employees have enjoyed for nearly three years. Additionally, as employee activism increases, businesses must prepare for the inevitable rise in lawsuits in addition to the backlash they will undoubtedly receive on social media and in internal Slack channels.

Undoubtedly, in order to fend off the legal storms, the compliance officers and legal team will need to put in extra effort. Which side, though, will the law favor is the question. Who is at fault—the employer or the worker? Can employers fire workers for not coming into work each day? What safeguards should businesses take in order to stay out of pointless legal disputes? Let’s get legal professionals view on the matter.

Sudden terminations due to noncompliance could be risky

The founder of HJA & Associates LLP and corporate lawyer Jitender Ahlawat explains that no law, regulation, or ruling prohibits working from home. “Unless express contractual provisions or applicable regulations specify otherwise, employers normally have the power to control all aspects of employment, including the working environment,” according to him.

Ahlawat emphasizes that employers need to make sure that their policies and procedures adhere to applicable laws and regulations, considering factors such as regional labor laws, employment agreements, and any recently implemented telecommuting guidelines. Labour laws that are specific to a given jurisdiction may require reasonable notice periods or a legitimate reason for a dismissal. Legally speaking, abrupt terminations brought on by noncompliance may be problematic. If enforcement is done too harshly and disregards these legal nuances, companies could run into legal issues,” he says.

According to him, it is crucial to preserve administrative rights in this regard while striking a careful balance, which is why employers thinking about making such decisions ought to consult with experienced legal counsel.

Two-pronged perspective

Anshul Prakash, an attorney and partner at Khaitan & Co., believes that a dual approach to this matter from a legal and business standpoint would be essential. Legally speaking, Indian courts have ruled that the employer has the authority to decide which form of work an employee must adopt—that is, whether to work remotely or in an office—based on the demands of the company. An employee has no legal claim to be stationed at a specific location or to work remotely unless it is expressly stated in the contract that they will do so permanently, according to Prakash.

“If an employee unjustifiably refuses to report to the office and insists upon working from home, the employer may take appropriate administrative and disciplinary action against the employee, including up to termination of employment, by following the due process as per internal disciplinary policy read with court-driven jurisprudence,” he states.

From a business standpoint, Prakash argues that surveys show the hybrid work model is here to stay for the foreseeable future and that the absence of flexible working options could lead to higher employee attrition, lower employee engagement, and difficulty attracting new talent. “Therefore, while employers have the right to terminate the services of employees by following due process in case they fail to return to the office, the business risks of such actions have to be weighed before initiating any such action,” he states.

Model Standing Orders recognize flexibility

The Model Standing Orders for the Services Sector 2020, according to Dr. Rennie Joyy, Advocate and Founding Partner of Judex & Whyte Attorneys, acknowledge remote work and offer flexibility in it. But it’s important to remember that employers have the power to specify the boundaries of the work area, and employees have a legal obligation to follow these restrictions. Employment relationships are usually “at-will,” which allows either party to end them whenever they choose, for any reason or no reason at all, provided that it doesn’t violate any particular legal protections, according to the speaker in many jurisdictions.

Joyy concurs with other legal experts when she emphasizes that employment contracts, state labor laws, and company-specific policies play a major role in an employer’s ability to fire a worker for refusing to work from the office. She goes on to explain:

Contractual Agreements: The terms of employment, including the requirement to work from an office, may be specified in the employment contract or agreement. Should such terms be stipulated, noncompliance may result in termination.

Local Labour Laws: States and centers have different employment laws. In addition to federal labor laws, which may place limitations on firing employees, businesses must be cognizant of and compliant with local state labor laws.

Company Policies: Companies should have transparent and unambiguous policies about work arrangements, including what is expected of office and remote workers. To reduce legal risks, termination decisions should be in line with these policies.

Communication and Documentation: It is essential to communicate and document expectations, policy changes, and performance concerns in a clear and concise manner. Employers must make sure staff members are informed of any changes and are given enough time to adjust.

“For Indian businesses, going back to the office signifies a dramatic change in the nature of work and a break from the remote work arrangements made necessary by the pandemic. For businesses looking to succeed over the long term in this new normal, striking a balance between the benefits of face-to-face collaboration and the requirement for flexibility will be crucial. The legal embarrassment with employees can be lessened by informing them of the company’s policies and by pursuing legal clarification in light of each business’s unique dynamics, according to Joyy.

What should companies do and not do to avoid legal cases?

Ahlawat of HJA & Associates LLP reminds us that it’s critical to strike a balance between the needs of the business and the rights of the employees as companies navigate the evolving landscape of work arrangements. “Businesses that require a return to the office must exercise caution in order to avoid legal pitfalls. A smooth transition to back-to-office work depends on striking the correct balance between the company’s operational needs and the employees’ legal rights. According to him, the main goal should be to uphold all applicable laws while cultivating an atmosphere that encourages cooperation and diversity.

Ahlawat goes on to discuss the following dos and don’ts that businesses should remember in order to stay out of needless legal disputes:

They should first make sure that labor laws are followed, taking into account things like working hours, breaks, and overtime compensation.
Give fair notice and open communication about the return-to-office policy.
It’s important to think about making flexible arrangements for people who actually have obstacles.
Companies need to engage in candid dialogue while considering the unique circumstances of each employee.
Businesses should implement policies equitably to prevent issues with discrimination.
Respecting health and safety regulations and maintaining a secure workplace are essential.
All punitive actions, including terminations of employment, must be properly documented and well-justified in order to prevent wrongful termination lawsuits.
In order to fully evaluate the ramifications and make sure that any decisions made respect employee rights and comply with legal requirements, it is essential to consult with legal counsel.

“The goal of these steps is to successfully manage the difficulties and ensure a smooth, legally compliant transition back to in-office work. By taking the aforementioned steps, businesses can lessen the risk of needless legal entanglements and enable a more seamless return to work by managing these legal complexities with care and tact, according to Ahlawat.

Employers should adopt a phase-wise approach

Employers should implement a phased approach to requiring workers to work from the office, according to Prakash of Khaitan & Co., since workers have been used to working remotely for almost three years. He recommends:

Companies should think about implementing a “return-to-office” policy to spell out exactly what’s expected of employees and what happens if they don’t comply.

In certain unique situations, such as when women return from maternity leave, they may also have enough latitude to decide the consequences of the breach while taking into account a variety of elements, such as the possible negative effect on client deliverables and customer needs.

“From an overall standpoint, knee-jerk reactions must be avoided in cases of employee insistence on working remotely, and employers must bear in mind the aspect of the criticality of a concerned employee’s presence on premises when it comes to initiating any adverse administrative action by the employer against a potentially erring employee,” Prakash advises.

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