Hello!

I wanted to know, when the company is firing an employee, do we need to give him/her the reason for firing along with proof? We are paying three months' salary to the employee as mentioned in the appointment letter.

Kindly let me know.

Thank you!

Regards, Nagaveni

From India, Bengaluru
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Dear Nagaveni,

There are two reasons for which employees are fired: underperformance or misconduct. Whatever the reason may be, you need to conduct the domestic inquiry. After the domestic inquiry, when the charge sheet is issued to the employee, it serves as communication regarding their termination. Following the issuance of the charge sheet, the employee is expected to respond, thus completing the communication process.

It seems that you have not followed or do not wish to follow the due process of the law. If you had followed it, you would not have raised this query!

Thanks,
Dinesh Divekar

From India, Bangalore
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Dear Nagaveni, put yourself in that worker’s position and tell us how you would feel if you were fired without any reason.
From United Kingdom
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nathrao
3251

"There are two reasons for which employees are fired: under-performance or misconduct. Whatever the reason may be, you need to conduct a domestic enquiry.

If the person is a contract employee and the terms stipulate that the company can terminate the contract without assigning any reason with one month's notice from either side, otherwise, as learned member Shri Dinesh has mentioned, should be kept in mind.

The procedure should not be short-circuited for the convenience of the organization."

From India, Pune
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Dear Friend,

You may have a reason for firing an employee, whether due to underperformance, indiscipline, untrustworthiness, accountability failure, money swindling, bribery in contracts, or involvement in criminal cases. It is essential to mention a valid reason when terminating an employee. While organizations often have a clause stating, "Your services may be terminated without providing reasons during the probationary period," such provisions are intended for maintaining discipline and should not be misused.

Terminating an employee should not be seen as a way to eliminate excess staff; reasons for termination should be provided in an orderly manner, with the employee's response duly noted for the organization's improvement.

Best of luck...

From India, Arcot
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There are also some more reasons for termination/discharge (other than being terminated/discharged on disciplinary grounds):

1) Closure of projects/want of orders and being on the bench strength for a long time.
2) Closure/merging/absorption of a company with another company.
3) Optimization of existing manpower/rationalization.
4) Completion of tenure and so on.
5) Cost-cutting.
6) VRS/VSS.

In these cases, most companies give an option to employees to "resign" (of course with due benefits as agreed upon) so that they will not face problems when searching for employment post-separation. It is only fair on the part of the employer to provide a trouble-free "Reason for leaving" while issuing the relieving letter/service certificates in order to assist those affected.

From India, Bangalore
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Agree with Mr. Kumar S. If it is retrenchment, then the company should be fair enough to deal accordingly and relieve the employee. If the employee is being terminated for other reasons, i.e., on disciplinary grounds, then proper domestic inquiry and all related procedures have to be taken into account. Lastly, termination with reasons thereof. Paying 3 months' salary is not a favor done to the employee; please keep that in mind.
From India, Ahmadabad
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nathrao
3251

In a nutshell, the answer to the original poster of the query is: Employees are human resources, and well-treated and engaged employees are the real strength of any organization. Termination of the relationship needs to be done with care and following principles of natural justice. Meet all financial dues as laid down in the appointment order. Don't find ways to cut down on what the employee is due to get. Obviously, a proper reason is necessary for termination. Inquiry into facts which ultimately lead to termination should be done by the employer, giving the employee a full chance to defend himself/herself. I would quote Matthew 7:12, which conveys a thought of great wisdom: "In everything, then, do to others as you would have them do to you. For this is the essence of the Law and the Prophets." Be fair, transparent, and balanced in your actions as an employer.
From India, Pune
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Dear Sir,

In our country, we do not have a hire and fire policy. There are only two ways in which an employee can be terminated. The first is by way of punishment, which should be preceded by a chargesheet and a domestic enquiry to give him an opportunity to prove his innocence. If you are engaging more than 50 employees, then the enquiry is conducted as per the Standing Orders Act. The second way is by way of surplusage, i.e. if he is rendered surplus for some reason in his category of workmen. This is governed by the Industrial Disputes Act, which is a central act applicable pan India. If the retrenchment is to be carried out, then an individual notice citing reasons for retrenchment has to be given in addition to retrenchment compensation at 15 days' salary per completed year of service and one month's notice pay. The retrenchment has to be valid and justified in the eyes of the law.

All this is provided he is an employee engaged in manual, clerical, technical, or supervisory work drawing a salary less than Rs. 1600. Or, even though the salary is higher, by virtue of his nature of duties, he is in the workman category.

From India, Pune
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Dear Nagaveni,

Whatever may be the reason for terminating the service of an employee, you need to follow the rules mentioned in the employment standing order. You need to calculate the dues based on that and pay that amount. However, termination is not a wise solution. I believe the employee has a family dependent on him/her, so we need to provide an opportunity for development in performance or behavior, as applicable.

If the proper procedure is not followed, he/she may take legal action against you. Therefore, follow the rules to stay on the safe side.

From India, Bhubaneswar
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