Termination of Employee

Querist :
Anonymous
(Querist) 06 December 2010
This query is : Resolved
Sir,
I would like seek an legal opinion abt the termination of employee with immediate effect due to his misbehaviour,absenteesim with out prior information,late comings,mishandles company's asset,despite verbal warnings,and enough time to improve but no change at all.Employee has completed 7 years of empolyment in the company and working as driver.Company has also helped in terms of advance loan of rs.1.15 Lacs which deductng @Rs.3000/pm.
We want to terminate his employment immediately as he is jeoapardizing.
Ours is an Private ltd.company He is only paid consolidate salary no pf,esi & others as we have small working force of 5-6 persons.
Kindly advise.
Thanks
H. S. Thukral
(Expert) 06 December 2010
Suspend him from the service, hold an inquiry in to charges of absentism/ late coming on the basis of records and then terminate his services. If you terminate the services without inquiry, he can successfully bring an action of wrongful termination against you and seek reinstatement/ compensation.
On initiating the disciplinary action, such employees usually prefer to opt out voluntarily accepting a compensation.
Kirti Kar Tripathi
(Expert) 07 December 2010
You can terminate his services immediately stating circumstances in the termination order. In case, the employee raises any dispute, you can prove the charges before the Labour Court. But be ready to pay his back wages till the date of Award, in case, his termination is upheld. In the case of Gujrat Steel Tubes Hon'ble Apex Court is very clear in this regard.