Section 218 - Protection of employees during investigation

Section 218 shields employees from unfair action during company investigations without prior approval, adding extra job security safeguards

Section 218 of the Companies Act, 2013 protects employees during investigations or proceedings concerning a company or related entities. When an investigation or specified proceeding is pending, the employer cannot discharge, suspend, dismiss, remove, reduce in rank, otherwise punish, or disadvantageously alter terms of employment of an employee without prior approval of the Tribunal. If no decision is received within thirty days of the application, the employer may proceed with the proposed action. Where the Tribunal raises objections, the employer may appeal to the Appellate Tribunal within thirty days, whose decision is final and binding. These safeguards operate in addition to other applicable laws.