Cognizant to Reinstate Employee Sacked via Access Card Block

In a landmark ruling for employee rights within the Indian IT sector, the Madras High Court has dismissed a writ petition filed by Cognizant Technology Solutions (CTS). 

The court upheld an appellate authority’s order to reinstate an employee who was “abruptly” terminated after 18 years of service. 

Justice D. Bharatha Chakravarthy, presiding over the case on April 3, 2026, delivered a scathing critique of corporate termination practices that rely on electronic access blocks rather than due legal process.

The Access Card Contention

The dispute involved K.N. Naresh, a long-term employee who joined the firm in 2000. 

Following a show-cause notice regarding alleged performance issues in 2018, Naresh was reportedly advised to take leave. 

Upon his return, he found his electronic access ID blocked, effectively barring him from the workplace.

The court ruled that revoking an access card as a primary means of dismissal is a direct violation of the Universal Declaration of Human Rights and the Protection of Human Rights Act. 

“Merely because corporate companies have a smart card access system, it cannot be used as a means of terminating service,” the Justice observed, labeling such actions as a breach of the “dignity of labour.”

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Failure of Domestic Enquiry by Cognizant

Cognizant contended that the employee had “abandoned” his job and was terminated for unauthorized absence. 

However, the court found that the management failed to conduct a proper domestic enquiry or provide evidence that a formal termination order was duly served. 

The absence of effective communication, including proof of email delivery, proved fatal to the company’s legal standing. 

Consequently, the court confirmed the employee’s entitlement to reinstatement with all associated benefits.

Broader Implications for the IT Sector

This judgment serves as a stern warning to HR departments across India’s tech hubs.

It reinforces that “performance-based” exits must adhere strictly to the Tamil Nadu Shops and Establishments Act. 

The ruling highlights that technical systems cannot bypass the necessity for fair working conditions and transparent disciplinary procedures. 

As companies increasingly automate workplace management, this precedent ensures that human rights remain central to corporate governance.

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