Introduction
In a noteworthy development, the Ministry of Labour and Employment, Government of India, has issued a Show Cause Notice to Mr. Sandeep Bakhshi, Managing Director and Chief Executive Officer of ICICI Bank Limited, under the Industrial Disputes Act, 1947.
The notice, dated 15 October 2025, was issued by the Office of the Deputy Chief Labour Commissioner (Central), Kanpur, following a complaint filed by an individual former employee of ICICI Bank alleging unfair labour practices.
While this notice pertains to a specific employee’s case rather than a collective or group complaint, it still holds significant implications for corporate accountability and the enforcement of labour rights within India’s private banking sector.
Background of the Complaint
The matter originates from a complaint filed by a former ICICI Bank employee with the Labour Commissioner’s Office, alleging violations of the Industrial Disputes Act, 1947. The employee accused the bank of engaging in unfair labour practices, including arbitrary termination, lack of due process, and non-adherence to the principles of natural justice.
Upon receipt of the complaint, the Labour Commissioner’s office issued an initial communication to ICICI Bank, seeking its written explanation and evidence regarding the allegations. The bank was required to respond to the notice within the prescribed time frame.
According to the latest official correspondence, ICICI Bank’s management submitted its written reply on 13 October 2025. However, after examining the response, the Labour Commissioner’s office found the explanation to be unsatisfactory and not supported by proper evidence or justification.
This led to the issuance of a formal Show Cause Notice addressed directly to the Managing Director and CEO of ICICI Bank, requiring him to explain why action should not be taken under the Industrial Disputes Act.
Key Highlights of the Show Cause Notice
The Show Cause Notice, bearing reference number K-45(52)2025/ALC, was issued by Mr. Alok Tripathi, Assistant Labour Commissioner (Central), Kanpur.
It states that:
- The bank’s earlier reply dated 13 October 2025 has been found unsatisfactory and lacking supporting documentation or justification.
- ICICI Bank is required to show cause within seven (7) days from receipt of the notice as to why further action should not be initiated under the Industrial Disputes Act, 1947, for having allegedly engaged in unfair labour practices as defined under Section 2(ra) read with the Fifth Schedule of the Act.
- The notice further directs that, in the absence of a satisfactory explanation within the stipulated period, the office shall proceed to take appropriate action as deemed fit under law without further reference.
- The management or its authorised representative has also been instructed to appear before the Assistant Labour Commissioner (Central) on 27 October 2025 at 12:30 PM at Kanpur, along with all relevant supporting documents.
Legal Context and Implications
The Industrial Disputes Act, 1947, is the cornerstone of labour legislation in India, designed to protect employees from arbitrary or unfair employment practices. Under Section 2(ra) and the Fifth Schedule, certain actions by employers—such as wrongful termination, victimisation, or refusal to engage in conciliation—constitute unfair labour practices.
The issuance of a Show Cause Notice to the Managing Director and CEO of a leading private bank underscores the individual accountability of senior management under the law. It also highlights the Labour Ministry’s willingness to ensure that corporate executives are directly answerable when statutory obligations towards employees are allegedly breached.
While this specific case concerns an individual employee’s grievance, it signals that the government is prepared to address individual rights violations with the same seriousness as collective disputes.
Broader Significance
Even though this action arises from a single employee’s complaint, it reflects the broader challenges faced by private sector employees in seeking redress for workplace injustices. Cases of wrongful termination, coerced resignations, and non-compliance with due process continue to surface across India’s financial and service industries.
This notice demonstrates that:
- The Labour Commissioner’s Office retains jurisdiction and authority to hold even senior corporate officials accountable.
- Individual complaints under the Industrial Disputes Act can trigger official scrutiny at the highest corporate level.
- The process reinforces the importance of documentation, fairness, and lawful procedure in employment decisions.
For ICICI Bank, the case may compel a review of its internal grievance redressal processes and termination protocols to ensure compliance with statutory standards.
The Road Ahead
ICICI Bank’s management is now required to respond within seven days of receiving the notice and to appear before the Labour Commissioner on the scheduled date.
If the explanation provided is found to be unsatisfactory, the Ministry of Labour may proceed with formal action under the Industrial Disputes Act, 1947. Such action could include referral to an Industrial Tribunal or initiation of legal proceedings against the employer under applicable provisions.
The upcoming hearing on 27 October 2025 will be a key moment in determining the next steps of this case. It will also set an example of how individual employee grievances can evolve into formal proceedings involving top management accountability.
Conclusion
The Show Cause Notice issued to ICICI Bank’s Managing Director and CEO following an individual employee’s complaint is an important legal and administrative development. It highlights the Labour Ministry’s commitment to upholding the rights of individual workers and ensuring that no employer—regardless of size or influence—is beyond the scope of labour law.
While the outcome of this particular case remains to be seen, it has already underscored the growing emphasis on fair treatment, procedural integrity, and accountability in corporate employment practices. The action also serves as a reminder to all organizations that compliance with labour law is a non-negotiable aspect of responsible business conduct.
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