procedure to terminate employees

This query is : Resolved 
 

(Querist)
22 December 2009

please tell what can be the safest procedure to terminate an employee in a private limited company.

Can we terminate him directly by assigning a reason or we have to give him a chance to reply on the show cause notice and then decide?
please explain.



adv. rajeev ( rajoo ) (Expert)
23 December 2009

You can terminate him directly by assigning the reasons.
You can also give chance to reply to your show cause notice.

prakash vathore (Expert)
23 December 2009

i think u must give him one month notice that u r going to terminate him/her on so and so reason.



Guest (Expert)
23 December 2009

There are only two methods known to law to terminate the services of the employee / workman. The first one is "retrenchment". A person can be retrenched by paying him one month notice (this is applicable only to the establishments where the number of employees including the management staff is less than 100) and retrenchment compensation at the rate of 15 days of wages for each and every completed years of service. This amount has to be paid along with the termination letter. The retrenched employee should be the junior most in his category. If you retain junior and retrench senior, it is illegal. Retrenchment is due to lack of work to that employee.

The second way of termination is "removal from service" or "dismissal". In this case, a misconduct has to be attributed to the employee, charge sheet has to be issued and domestic enquiry has to be conducted, where the employee should be given full opportunity to prove his innocence.

That just giving one month notice with or without assigning reason before termination is illegal, even though the terms of appointment mentions this method and the courts would set aside such terminations.

A.R.KUPPUSAMI (Expert)
23 December 2009

The way of termination is "removal from service" or "dismissal". In this case, a misconduct has to be attributed to the employee. First if any complaint received from co-worker/superior against the particular person explanation to be called for if it is not satisfactory, charge sheet has to be issued and domestic enquiry has to be conducted, where the employee should be given full opportunity to prove his innocence. If he fails to prove a 2nd Show Cause Notice to be issued and dismissal order can be.
or
That removal from service or retrenchment just giving one month notice when there is defeciency of raw material/orders to execute the work or loss "Last come first go" policy to be adopted without assigning reason before termination is illegal, even though the terms of appointment mentions this method and the courts would set aside such terminations.


Chandan Garg (Querist)
23 December 2009

THANKS VERY MUCH EVERYBODY

raj kumar makkad (Expert)
23 December 2009

Hire and Fire policy is not applicable in your case as the employer is a Pvt. Ltd. Co.

It is better to follow either the standing order of the company or the terms of the appointment in such cases otherwise his reinstatement with back wages can be made. Do not make hurry and follow the procedure.

H. S. Thukral (Expert)
24 December 2009

What is the nature of work of employee ?

Ajay Bansal (Expert)
26 December 2009

If he/she is on probation period then you can discharge him/her on a simpliciter order,otherwise you have to hold an enquairy of major punishment and if he/she is held guilty in tjat proceedings then a termination order could be passed against him/her.

Ms.Usha Kapoor (Expert)
19 June 2018

I agree with Raj Kumar Makkad.



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