Knowledge is power.
Labour laws will apply to workmen only and the senior staff and officers whose salaries are more will not be covered under these rules. Their terms of employment will be dependent on the terms of the appointment letter.
In any private organisation, the terms and conditions will be mentioned clearly. From either side, anybody wants to part there will be a condition in which the notice period will be mentioned. If the employer wants to remove the employee or the employee wants to go away that notice period clause is to be followed. Definitely in every private company, every employee holds some responsibility and he will be questioned for non-perfromace.
To remain in the safe side in the lean periods, it is always better to join a government undertaking where they would remain safe irrespective of market behaviour.