Termination Policy for Employees, Consultants, and Trainees
Can someone elaborate on the termination policy for employees (payroll), consultants, and trainees (not on payroll) as per the Shops and Establishment Act for TN, please? Specifically, can the notice period from the company, in case of termination of services, be lesser than the employee's notice period that is expected by the company?
Termination During Probation
1. During your probation period of 6 months, your appointment can be terminated by the company, without any reason, by giving you not less than 15 days' prior notice in writing or salary in lieu thereof. For the purpose of this clause, salary shall mean basic salary.
2. During your probation period of 6 months, you may terminate your employment with the company, without any cause, by giving no less than two months' prior notice.
Termination After Confirmation
1. On confirmation, your appointment can be terminated by the company, without any reason, by giving you not less than one month's prior notice in writing or salary in lieu thereof. For the purpose of this clause, salary shall mean basic salary.
2. On confirmation, you may terminate your employment with the company, without any cause, by giving no less than two months' prior notice or salary for the unsaved period, left after adjustment of pending leaves, as on date.
Can the above clause be applicable for full-time employees? If an employee is terminated on disciplinary grounds, is the company still liable to pay a month's salary to the employee?
From India, Chennai
Acknowledge(0)
Amend(0)
Can someone elaborate on the termination policy for employees (payroll), consultants, and trainees (not on payroll) as per the Shops and Establishment Act for TN, please? Specifically, can the notice period from the company, in case of termination of services, be lesser than the employee's notice period that is expected by the company?
Termination During Probation
1. During your probation period of 6 months, your appointment can be terminated by the company, without any reason, by giving you not less than 15 days' prior notice in writing or salary in lieu thereof. For the purpose of this clause, salary shall mean basic salary.
2. During your probation period of 6 months, you may terminate your employment with the company, without any cause, by giving no less than two months' prior notice.
Termination After Confirmation
1. On confirmation, your appointment can be terminated by the company, without any reason, by giving you not less than one month's prior notice in writing or salary in lieu thereof. For the purpose of this clause, salary shall mean basic salary.
2. On confirmation, you may terminate your employment with the company, without any cause, by giving no less than two months' prior notice or salary for the unsaved period, left after adjustment of pending leaves, as on date.
Can the above clause be applicable for full-time employees? If an employee is terminated on disciplinary grounds, is the company still liable to pay a month's salary to the employee?
From India, Chennai
Acknowledge(0)Amend(0)
Notice period should be a win-win situation for both the employee and the employer. We, as HR professionals, need to educate the management that a company can't expect the employee to serve a long duration while resigning, especially against termination, which is unethical.
To answer your question, yes, the company needs to pay the employee even though he is terminated on disciplinary grounds.
From India, Chennai
Acknowledge(0)Amend(0)
12To answer your question, yes, the company needs to pay the employee even though he is terminated on disciplinary grounds.
From India, Chennai
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Tamil-nadu-shop s-and-establish ments-act-1947. pdf