What are all the grounds available to terminate an employee?
Which grounds of termination are legal under any Indian laws? This means no Indian judge can say the termination is legally wrong.
Please provide your valuable answers.
From India, Bengaluru
Acknowledge(0)
Amend(0)
Which grounds of termination are legal under any Indian laws? This means no Indian judge can say the termination is legally wrong.
Please provide your valuable answers.
From India, Bengaluru
Acknowledge(0)Amend(0)
Dear Sirs,
There can be many grounds and reasons which can result in the termination of an employee which are as follows:
1. Inefficiency of an employee-
If the employer finds that the employee is not efficient enough and is not adding to the growth and productivity of the business due to its poor and low performance, then it is a strong reason for the termination. Though generally this clause is not inserted in the contracts, but in recent times there is clause in the contract relating to achieving a specific target in a certain time period, which if not achieved can lead to termination.
2. If the Confidential Provisions of the Company are disclosed-
It is the moral and legal duty of the employees to not to dispose any trade secret, confidential data, and discussions and policies to any third party who is not associated with the company, which in turn can lead to losses and damage to the business.
3. If there is breach of the employment contract-
If the employee violates the terms and clauses mentioned in the contract and does not perform according to the conditions on the basis of which he was hired and posted at a particular designation, then the employer can use it as a strong reason for the retrenchment.
4. If there is any misconduct on the part of the employee-
If the employee acts outside its authority and indulges in any improper behavior and misconduct which may cause loss, damage to the enterprise, then in those circumstances the employer can rightly terminate the employment contract.
5.Termination due to absconding of an employee-.
There are no set rules. Time limit can vary as per standing orders of the company but mostly it is 10 days as is in the model standing order. A show cause notice is issued if there is no reply to the mails or calls. But full and final settlement is done only after he shows after giving an opportunity to clarify for the same.
6. Due to Downsizing: It means reducing the size of Organization. It is a restructuring process in which the organization disposes off its non-core activities. Organization can eliminate certain jobs to improve work efficiency and reduces staff which is excess of its needs i.e. reduces staff/ surplus employees against its actual requirement.
## Workman in the Industrial Sector, in which the termination policy is governed by the Industrial Dispute Act, 1947.
## As per the Section 2(o o) of the Indian Disputes Act, 1947
“Retrenchment” refers to the termination of service as a punishment or for any other reason, whatsoever
Section 25 F defines the conditions that need to be performed for Retrenchment of employee who has been in continuous service for not less than one year. Its means permanent termination of an employee's services for economical reason in a running industrial unit.
## As per the Section 2(kkk) of the Indian Disputes Act, 1947
" Lay-off" leads to termination of employees when there is no work in the organization. It may be temporary or permanent removal of surplus staff from the payroll to reduce the financial burden on the organization.
# As per Section 79 of the Factories Act, 1948 the dues should be payable before the expiry of the second working day when the employment is terminated.
# As per the Section 7(3) of the Payment of Gratuity Act, 1972, gratuity is payable within 30 days. And as per Section 4 it is payable to an employee who has served for 5 years or more.
# An employee is also entitled to the leave encashment for the leaves accrued.
# If the establishment falls under the Shops and Establishments Act which is different for every state then, in case of white collar employees, if the employee is terminated then the payment is carried out post the last working day and if there is normal resignation, then the full and final settlement of dues should generally be made within 45 days.
## What manner is adopted by companies for termination of employment of White-Collar employees?
Almost all the employment contracts specifically mention the clause which states the period of notice that is to be given to the employees before his/her employment stands terminated. Usually all the contracts offer “30-90 days notice or salary in lieu thereof”. This period can be changed as per the company policy and can vary from one company to another. The termination of employment should also be supported with a strong and reasonable ground which is very essential.
##Termination of Employment of White Collar Employees
Since there are no specific legislation governing the white collar workers, so their service conditions are basically governed by the clauses and terms and conditions mentioned in their individual employment contracts which is governed by some basic provisions mentioned in the Indian Contract Act, 1872.
Regards,
Amit
From India, Surat
Acknowledge(0)Amend(0)
144There can be many grounds and reasons which can result in the termination of an employee which are as follows:
1. Inefficiency of an employee-
If the employer finds that the employee is not efficient enough and is not adding to the growth and productivity of the business due to its poor and low performance, then it is a strong reason for the termination. Though generally this clause is not inserted in the contracts, but in recent times there is clause in the contract relating to achieving a specific target in a certain time period, which if not achieved can lead to termination.
2. If the Confidential Provisions of the Company are disclosed-
It is the moral and legal duty of the employees to not to dispose any trade secret, confidential data, and discussions and policies to any third party who is not associated with the company, which in turn can lead to losses and damage to the business.
3. If there is breach of the employment contract-
If the employee violates the terms and clauses mentioned in the contract and does not perform according to the conditions on the basis of which he was hired and posted at a particular designation, then the employer can use it as a strong reason for the retrenchment.
4. If there is any misconduct on the part of the employee-
If the employee acts outside its authority and indulges in any improper behavior and misconduct which may cause loss, damage to the enterprise, then in those circumstances the employer can rightly terminate the employment contract.
5.Termination due to absconding of an employee-.
There are no set rules. Time limit can vary as per standing orders of the company but mostly it is 10 days as is in the model standing order. A show cause notice is issued if there is no reply to the mails or calls. But full and final settlement is done only after he shows after giving an opportunity to clarify for the same.
6. Due to Downsizing: It means reducing the size of Organization. It is a restructuring process in which the organization disposes off its non-core activities. Organization can eliminate certain jobs to improve work efficiency and reduces staff which is excess of its needs i.e. reduces staff/ surplus employees against its actual requirement.
## Workman in the Industrial Sector, in which the termination policy is governed by the Industrial Dispute Act, 1947.
## As per the Section 2(o o) of the Indian Disputes Act, 1947
“Retrenchment” refers to the termination of service as a punishment or for any other reason, whatsoever
Section 25 F defines the conditions that need to be performed for Retrenchment of employee who has been in continuous service for not less than one year. Its means permanent termination of an employee's services for economical reason in a running industrial unit.
## As per the Section 2(kkk) of the Indian Disputes Act, 1947
" Lay-off" leads to termination of employees when there is no work in the organization. It may be temporary or permanent removal of surplus staff from the payroll to reduce the financial burden on the organization.
# As per Section 79 of the Factories Act, 1948 the dues should be payable before the expiry of the second working day when the employment is terminated.
# As per the Section 7(3) of the Payment of Gratuity Act, 1972, gratuity is payable within 30 days. And as per Section 4 it is payable to an employee who has served for 5 years or more.
# An employee is also entitled to the leave encashment for the leaves accrued.
# If the establishment falls under the Shops and Establishments Act which is different for every state then, in case of white collar employees, if the employee is terminated then the payment is carried out post the last working day and if there is normal resignation, then the full and final settlement of dues should generally be made within 45 days.
## What manner is adopted by companies for termination of employment of White-Collar employees?
Almost all the employment contracts specifically mention the clause which states the period of notice that is to be given to the employees before his/her employment stands terminated. Usually all the contracts offer “30-90 days notice or salary in lieu thereof”. This period can be changed as per the company policy and can vary from one company to another. The termination of employment should also be supported with a strong and reasonable ground which is very essential.
##Termination of Employment of White Collar Employees
Since there are no specific legislation governing the white collar workers, so their service conditions are basically governed by the clauses and terms and conditions mentioned in their individual employment contracts which is governed by some basic provisions mentioned in the Indian Contract Act, 1872.
Regards,
Amit
From India, Surat
Acknowledge(0)Amend(0)
Dear Sairam,
Since your post ascribes the aspect of unquestionable legality to the termination of an employee, it relates only to the unilateral termination of the contract of employment with the employee concerned by the employer on his own. Simply put, your question is: what are the types of lawful termination of the services of an employee by his employer? To the best of my knowledge and belief, the answer is as follows:
1) DISMISSAL: An employee can be terminated or dismissed by his employer on the ground of specific and proven misconduct. Since dismissal attaches stigma to the character of the employee, affects his terminal benefits and his future employment, the entire process of disciplinary action culminating in dismissal should be in strict compliance with the Principles of Natural Justice. Even a slight departure in this regard would be seriously viewed by the Judiciary, and the dismissal could be set aside.
2) DISCHARGE: The employer can discharge an employee on the ground of (i) non-renewal of the contract of employment between the employer and the employee concerned on its expiry or as per the stipulation, if any contained in the contract (ii) continued ill-health of the employee.
3) RETRENCHMENT: It is the termination of the services of an employee for whatever reason other than dismissal on the ground of misconduct and discharge as explained in items (i) and (ii) above. But before discharging a workman, the conditions stipulated as to notice, payment of retrenchment compensation, and permission from the appropriate Govt as per sec. 25-F or 25-N shall be complied with by the employer.
From India, Salem
Acknowledge(0)Amend(0)
Since your post ascribes the aspect of unquestionable legality to the termination of an employee, it relates only to the unilateral termination of the contract of employment with the employee concerned by the employer on his own. Simply put, your question is: what are the types of lawful termination of the services of an employee by his employer? To the best of my knowledge and belief, the answer is as follows:
1) DISMISSAL: An employee can be terminated or dismissed by his employer on the ground of specific and proven misconduct. Since dismissal attaches stigma to the character of the employee, affects his terminal benefits and his future employment, the entire process of disciplinary action culminating in dismissal should be in strict compliance with the Principles of Natural Justice. Even a slight departure in this regard would be seriously viewed by the Judiciary, and the dismissal could be set aside.
2) DISCHARGE: The employer can discharge an employee on the ground of (i) non-renewal of the contract of employment between the employer and the employee concerned on its expiry or as per the stipulation, if any contained in the contract (ii) continued ill-health of the employee.
3) RETRENCHMENT: It is the termination of the services of an employee for whatever reason other than dismissal on the ground of misconduct and discharge as explained in items (i) and (ii) above. But before discharging a workman, the conditions stipulated as to notice, payment of retrenchment compensation, and permission from the appropriate Govt as per sec. 25-F or 25-N shall be complied with by the employer.
From India, Salem
Acknowledge(0)Amend(0)
Thank you for your answers. I have some follow-up queries:
1) Inefficiency of an Employee
If an employer terminates an employee on the grounds of inefficiency or poor performance, what benefits can the employee lose? Is this considered acceptable and legally right in the eyes of any Indian judge in court?
From India, Bengaluru
Acknowledge(0)Amend(0)
1) Inefficiency of an Employee
If an employer terminates an employee on the grounds of inefficiency or poor performance, what benefits can the employee lose? Is this considered acceptable and legally right in the eyes of any Indian judge in court?
From India, Bengaluru
Acknowledge(0)Amend(0)
Dear Sairam,
If the answers to the below-given questions are "yes," then it is legally right:
- Did HR or the manager inform/warn him in writing about his poor performance?
- Do you have enough proof to show that the employee was inefficient?
- Did you provide him with proper training for the given job and maintain a record of the same?
- Did the employee get the chance to show improvement in his performance?
- Did you put him in some program to improve efficiency?
- Was he warned in writing about losing his job if he failed to show improvement?
- Was the employee on probation?
Regarding the question about what benefits he will lose, he will lose his job, and you will have to pay him until his last working day.
From India, Pune
Acknowledge(0)Amend(0)
If the answers to the below-given questions are "yes," then it is legally right:
- Did HR or the manager inform/warn him in writing about his poor performance?
- Do you have enough proof to show that the employee was inefficient?
- Did you provide him with proper training for the given job and maintain a record of the same?
- Did the employee get the chance to show improvement in his performance?
- Did you put him in some program to improve efficiency?
- Was he warned in writing about losing his job if he failed to show improvement?
- Was the employee on probation?
Regarding the question about what benefits he will lose, he will lose his job, and you will have to pay him until his last working day.
From India, Pune
Acknowledge(0)Amend(0)
Assuming everything is done to protect the job, but then there are no projects/work available or the employee hardly improved anything on the given project, is this termination legally right? Benefits, I mean to say gratuity, will he lose gratuity after the termination of the employee due to poor performance?
---
In the given scenario, if all necessary steps have been taken to safeguard the employee's position, but there is a lack of available projects or if the employee has shown minimal improvement on assigned tasks, would it be legally justified to terminate the individual? Specifically, in terms of benefits such as gratuity, would the employee forfeit these entitlements following termination due to inadequate performance?
From India, Bengaluru
Acknowledge(0)Amend(0)
---
In the given scenario, if all necessary steps have been taken to safeguard the employee's position, but there is a lack of available projects or if the employee has shown minimal improvement on assigned tasks, would it be legally justified to terminate the individual? Specifically, in terms of benefits such as gratuity, would the employee forfeit these entitlements following termination due to inadequate performance?
From India, Bengaluru
Acknowledge(0)Amend(0)Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
Termination from Employment.pdf
Brochure- EMPLOYMENT LAWS FOR WOMEN.doc