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Unlawful termination - Who gave the rights to employers to treat their staff like animals? - CiteHR

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Need your kind suggestions on the topic of unlawful termination by our employers.
We are working in a software company, where they don't provide us any official documents regarding the job. And after some months he called us in last Saturday and says that we don't have fund to pay the team so we are shorting some people. And it will be effective by next working day. So no any need to come office for some people.
Even though he didn't clear the final settlement and ask them to come on Monday to collect their settled amount and pervious month salary. But on Monday again he told the same that he doesn't have funds to clear the pending so come again on next week even he doesn't give any certain date.
So on that kind behaviour towards employees I have doubts for the situation:
1. Who gave the rights to employers to treat their staff as an animal?
2. If management decided then why don't they serve any written notice to the listed person? At least also they have some time to find some job or other living hood ideas and will be ready by mentally.
3. And employer is saying that he will pay only till the last working.
So now my questions are
A. What amount will be a full and final amount on the bases of rights?
B. Can the terminated employee ask for the demage on a monthly basis because he don't have any clue regarding the termination?
C. How the laws will helps the other current employees to prevent that kind of situation by the same employer.
D. What penalty can should be imposed to the employer so he will not again repeat the shameful act?
And last one on the festive season is our employer escapes to pay some extra bucks on the fired employees?
Sorry for the long post but really its means a lot to the terminated employees.

From India, Noida
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Dear friend,
I'm really sorry for the plight of modern day, educated youth. I share your agony. Such things were happening mostly in unorganised sector in the past where uneducated, people from downtrodden society were exploited like this. This trend now a days has been commonly seen in IT sector as well. Due to some reason trade unionism has not taken birth in IT/ITES sector in the country. It's unfortunate that you people were working in a firm who had never shared any documentary evidence with their employees. This is the sinister design of some entrepreneurs to gain mileage and vanish in a flash unscathed leaving you innocent workers in the lurch.
At this juncture what is possible, I could guess is, to gather like mined colleagues, pool some money and try to take legal action, including asking the Labour Enforcement Officers and/or police to intervene, if that helps.

From India, Bangalore
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