Maharashtra Govt Targets “Fake Job Scams” and Illegal Layoffs in IT Sector

Maharashtra government announced on Wednesday, March 18, 2026, that it is framing new rules to regulate forced resignations and arbitrary job terminations within the IT sector.

Labour Minister Akash Fundkar informed the Legislative Assembly that the state is preparing to establish a dedicated IT Tribunal to provide a specialized grievance redressal mechanism for the industry.

Addressing the “Hinjewadi Scam” and Layoffs

The government’s intervention follows a series of alarming reports concerning employee mistreatment and financial fraud.

During a calling attention motion, MLA Shankar Jagtap highlighted a massive scam at Hinjewadi IT Park, where a training institute allegedly defrauded over 1,000 fresh graduates by promising jobs.

Beyond fraud, the assembly discussed the rising trend of “forced resignations,” where companies allegedly coerce employees into quitting to avoid paying statutory severance packages and to bypass retrenchment laws.

Maharashtra Government Establishing an Independent IT Tribunal

Currently, IT employees must navigate slow-moving labor or industrial courts.

These courts are often ill-equipped to handle the unique contractual and technical nature of the tech industry.

Minister Fundkar stated that the state will implement a separate IT Tribunal in alignment with India’s new Industrial Relations Code 2020.

“As soon as the central guidelines are finalized, the state will immediately draft the law and establish this tribunal,” Fundkar affirmed.

This body will specifically handle disputes related to:

• Forced Resignations: The rules protect employees from pressure to sign “voluntary” exit papers.
• Full and Final (F&F) Settlements: Ensuring timely and accurate payment of dues and Provident Fund (PF) compliance.
• Severance Discrepancies: Regulating terminations that occur without proper notice or compensation.

Read Also: Is Your Tech Job Safe? AI Productivity Shift at Meta Could Change Hiring Forever

Expanding the “Workman” Definition

Gemini said 

A key hurdle in current legislation is the lack of a clear definition for “Workman” within the IT sector.

This gap leaves many high-skilled professionals outside the protective umbrella of the Industrial Disputes Act.

The proposed state rules aim to provide a clearer legal framework for regulating working hours.

This initiative provides greater security for the state’s massive tech workforce in global hubs like Pune and Mumbai.

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