Hello,
Kindly help answering below my queries on the Industrial Dispute Act:
1) Is a domestic inquiry mandatory for IT companies before terminating any employee?
2) What if an employee stops coming to the office?
3) Can we terminate an employee after issuing two show cause notices?
4) What will be the stance if an employee stops coming to the office or is not ready for a domestic inquiry?
Please help.
From India, Mumbai
Acknowledge(0)
Amend(0)
3Kindly help answering below my queries on the Industrial Dispute Act:
1) Is a domestic inquiry mandatory for IT companies before terminating any employee?
2) What if an employee stops coming to the office?
3) Can we terminate an employee after issuing two show cause notices?
4) What will be the stance if an employee stops coming to the office or is not ready for a domestic inquiry?
Please help.
From India, Mumbai
Acknowledge(0)Amend(0)
Dear friend,
It is not about the companies, whether it is IT or some other organization; each and every employee under the purview of the rules and regulations should comply with certain facts for the benefits of the organization and for the benefits of self. They must follow certain laid-down rules in employment. An inquiry is mandatory before terminating an employee because, prima facie, we must prove the employee committed certain things against their integrity, created a black mark on the organization, proved untrustworthy to superiors; thus, we cannot immediately terminate any employee without thoroughly investigating. However, certain activities like untrustworthy activities of selling our product and its flavors, stealing information and selling to rivals, killing a colleague, household grave damages for mental and physical assaults, abandoning training before taking on the company role, will attract immediate suspension and termination, or till the pendency of the court verdict, etc. Everything rests with the organization and its control.
If an employee stops coming into the office, say absconding, send a notice first to report to duty within a 15-day time frame. Then, send another letter giving one week's time. Subsequently, send a legal notice for absconding without information. Later conduct an inquiry ex-post facto in the absence of the individual, terminate them, and put it in the company notice. Inform the authorities with legal consequences, stopping pay and allowances, PF authorities, etc. It is better to put the employee under suspension as the employee has already absconded. Never worry if they fail to receive your legal notice at the address provided; put it in the local newspaper and take action. If you still do not want to do this, stop pay and allowances and wait.
Please follow point 2.
Do as in paragraph 2, and you can initiate a police complaint, etc., if the employee had important charges in the organization with very important records withheld. Hope you have not done so and spare such an employee.
Best wishes...
From India, Arcot
Acknowledge(0)Amend(0)
It is not about the companies, whether it is IT or some other organization; each and every employee under the purview of the rules and regulations should comply with certain facts for the benefits of the organization and for the benefits of self. They must follow certain laid-down rules in employment. An inquiry is mandatory before terminating an employee because, prima facie, we must prove the employee committed certain things against their integrity, created a black mark on the organization, proved untrustworthy to superiors; thus, we cannot immediately terminate any employee without thoroughly investigating. However, certain activities like untrustworthy activities of selling our product and its flavors, stealing information and selling to rivals, killing a colleague, household grave damages for mental and physical assaults, abandoning training before taking on the company role, will attract immediate suspension and termination, or till the pendency of the court verdict, etc. Everything rests with the organization and its control.
If an employee stops coming into the office, say absconding, send a notice first to report to duty within a 15-day time frame. Then, send another letter giving one week's time. Subsequently, send a legal notice for absconding without information. Later conduct an inquiry ex-post facto in the absence of the individual, terminate them, and put it in the company notice. Inform the authorities with legal consequences, stopping pay and allowances, PF authorities, etc. It is better to put the employee under suspension as the employee has already absconded. Never worry if they fail to receive your legal notice at the address provided; put it in the local newspaper and take action. If you still do not want to do this, stop pay and allowances and wait.
Please follow point 2.
Do as in paragraph 2, and you can initiate a police complaint, etc., if the employee had important charges in the organization with very important records withheld. Hope you have not done so and spare such an employee.
Best wishes...
From India, Arcot
Acknowledge(0)Amend(0)
Thank you so much, Gopinath. I appreciate your help with this. How do I deal with a kind of dispute where an employee has filed a termination action with the Labor Office, which has been referred to the Labor Court by ACL? One of my friends is working in a small IT firm and is facing this scenario. I wanted to help him find a good lawyer who can handle this dispute under the ID Act Section 10(1)(c).
From India, Mumbai
Acknowledge(0)Amend(0)
From India, Mumbai
Acknowledge(0)Amend(0)
Dear Mr. Hiren Jani,
I have perused your query. Kindly bear in mind that all establishments, whether industrial or non-industrial, are all covered under the respective enactments. The nature of the industry falls within the purview of the concerned Act, as the case may be.
The comments given by Mr. Gopinath are tangential in nature. In the first place, the IT industry is not exempted for any reasons. Secondly, Domestic Enquiries are mandatory to protect the interest of the Company from the clutches of the law. If the employee is permanent and ceases to attend his office, the Company is at liberty to issue a show cause notice for voluntary abandonment of service. If there is no response from the employee, the Enquiry needs to be conducted and accordingly, an ex-parte order (for termination of service) be passed in that regard, by the competent authority.
I hope your queries are answered. In case you need further guidance for claiming terminal dues, etc., kindly feel free to call me/email me.
Thanking you, with regards,
Praful M Lale Labour Law Consultant, Mumbai (M) 9820445140
From India, Mumbai
Acknowledge(0)Amend(0)
I have perused your query. Kindly bear in mind that all establishments, whether industrial or non-industrial, are all covered under the respective enactments. The nature of the industry falls within the purview of the concerned Act, as the case may be.
The comments given by Mr. Gopinath are tangential in nature. In the first place, the IT industry is not exempted for any reasons. Secondly, Domestic Enquiries are mandatory to protect the interest of the Company from the clutches of the law. If the employee is permanent and ceases to attend his office, the Company is at liberty to issue a show cause notice for voluntary abandonment of service. If there is no response from the employee, the Enquiry needs to be conducted and accordingly, an ex-parte order (for termination of service) be passed in that regard, by the competent authority.
I hope your queries are answered. In case you need further guidance for claiming terminal dues, etc., kindly feel free to call me/email me.
Thanking you, with regards,
Praful M Lale Labour Law Consultant, Mumbai (M) 9820445140
From India, Mumbai
Acknowledge(0)Amend(0)
Dear Mr. Hiren,
The Industrial Employment Standing Orders govern the service conditions of the employees unless you have your own certified standing orders. It applies to all industrial establishments employing 50 or more workmen in the preceding 12 months. The Act is applicable to all shops and commercial establishments in Maharashtra mutatis mutandis (as it is) by virtue of section 38B. Therefore, the misconducts stated in the standing orders, if indulged in by the employees, are exposed to disciplinary action depending upon the gravity of the act committed.
Termination is of two types, one is punitive, and the other is surplusage. Punitive termination should necessarily be preceded by an inquiry as per the law so that the employee should be given a full opportunity to defend himself as per the rules of natural justice and fair play. If the employee stops coming to the office, you have to issue him a show cause for his absence and call for his explanation. If he renders his explanation and resumes duty, you can take a call. If he fails to resume duty after the issue of a show cause notice, you can issue him a charge sheet, but ensure that the communication is received by him. Thereafter, initiate an inquiry into his absence by following the procedure laid down in the standing orders. If he fails to participate in the inquiry, you can proceed ex parte against him. After the completion of the inquiry and sending a copy of the findings to the employee, asking him to give his comments thereon, you can issue a letter of termination. But the termination should be a well-drafted and reasoned one.
From India, Pune
Acknowledge(0)Amend(0)
The Industrial Employment Standing Orders govern the service conditions of the employees unless you have your own certified standing orders. It applies to all industrial establishments employing 50 or more workmen in the preceding 12 months. The Act is applicable to all shops and commercial establishments in Maharashtra mutatis mutandis (as it is) by virtue of section 38B. Therefore, the misconducts stated in the standing orders, if indulged in by the employees, are exposed to disciplinary action depending upon the gravity of the act committed.
Termination is of two types, one is punitive, and the other is surplusage. Punitive termination should necessarily be preceded by an inquiry as per the law so that the employee should be given a full opportunity to defend himself as per the rules of natural justice and fair play. If the employee stops coming to the office, you have to issue him a show cause for his absence and call for his explanation. If he renders his explanation and resumes duty, you can take a call. If he fails to resume duty after the issue of a show cause notice, you can issue him a charge sheet, but ensure that the communication is received by him. Thereafter, initiate an inquiry into his absence by following the procedure laid down in the standing orders. If he fails to participate in the inquiry, you can proceed ex parte against him. After the completion of the inquiry and sending a copy of the findings to the employee, asking him to give his comments thereon, you can issue a letter of termination. But the termination should be a well-drafted and reasoned one.
From India, Pune
Acknowledge(0)Amend(0)Engage with peers to discuss and resolve work and business challenges collaboratively - share and document your knowledge. Our AI-powered platform, features real-time fact-checking, peer reviews, and an extensive historical knowledge base. - Join & Be Part Of Our Community.
Domestic Inquiry.pdf
Initial telephonic inquiry.doc