Hi,

Can we terminate a worker who is a permanent employee of the company? If so, what are the legal aspects we need to take care of?

As per the appointment letter, a one-month notice period is applicable. This is regarding the location in Delhi.

Thanks


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Dear Rishi,

Why do you want to terminate the employee? Has he/she committed any "misconduct"? If yes, then you may order a domestic enquiry. During the enquiry, provide the employee with the opportunity to present his/her case. If the employee is found guilty, proceed to award the appropriate punishment. Termination is considered the most severe form of punishment.

Thanks,

Dinesh Divekar

From India, Bangalore
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Dear Sir,

There are two ways of terminating the services of a permanent employee. One is by way of disciplinary action, i.e., if he has indulged in some serious misconduct. In this case, you need to issue a charge sheet and conduct an inquiry wherein full opportunity is to be given to the workman to defend himself through a representative of his choice. After the completion of the inquiry, the copy of the findings needs to be sent to the workman for his comments. Thereafter, you have to scrutinize if the findings are based on the evidence presented in the inquiry, both oral and documentary. Then, you need to check the past record of service of the workman. If you find that termination is legal and justified under the circumstances, then you can issue a detailed dismissal letter setting out the reasons for this termination.

Secondly, if the workman is rendered surplus due to various reasons, then you need to follow the provisions of the Industrial Disputes Act and put up a category-wise seniority list for display on the notice board for 8 days. Thereafter, you need to follow the principle of "last come, first go," i.e., the person who joined the organization last will be the first to go. You need to pay retrenchment compensation at a rate of 15 days' salary per completed year of service, one month's notice pay, and all other legal dues such as leave wages, earned salary, pro-rata bonus, etc., at the time of effecting retrenchment. You need to put up a general notice stating the reasons for the retrenchment and send a copy to the Government and the Labour Commissioner. You then have to draft an individual notice to the workman stating the reasons for the termination and attach the cheque for his legal dues, either serving it upon him or sending it by RPAD.

From India, Pune
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Do you have Service Rules/Certified Standing orders? Whether the Employee in question is a Workman under the definition of Sec 2(S) of the Industrial Disputes Act, 1947? For what reasons are you contemplating resorting to termination of service? If the due procedure is not followed, such termination will be set aside by the Court.
From India, New Delhi
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DMC 123 Sir, you have provided very valuable information. Thanks for the same SNC
From India, Ranchi
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Before asking for the detailed procedure of terminating a permanent employee without attracting the provisions of labor laws, please provide details of your case:

1. Nature of duties of the employee
2. Nature of establishment/company and its strength
3. Last drawn wages
4. Tenure of service
5. Reason for wanting to terminate the employee

Thank you.

From India, Kolkata
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