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I would like to know if an Employee is being terminated is he Eligile for an extra months pay. Please do advice at the earliest. Simmi
hi pallavi,
it depends on the policies of the company.
Generally at the time of appointing a candidate , companies mention in their appointment letter to give a notice of one month before leaving the company, this is applicable on both the sides.
Secondly, if the employee resigns without giving this notice he is asked to give his one month's salary and if THE COMPANY TERMINATES THE EMPLOYEE WITHOUT GIVING THIS NOTICE THEN THE EMPLOYER IS LIABLE TO GIVE ONE MONTH'S SALARY TO THE EMPLOYEE.

There is a contract of employment between the employee/s and the employer (generally seen as "appointment letter") To answer your question one has to examin if the contract has any provision in this regard and act accordingly.
In the alternate scenario, the applicable provisions from the Industrial Disputes Act and the Industrial Employment (Standing Orders) Act need to to be verified.
In another scenario, if the termination is as a result of a disciplinary action under the standing orders (referred o above) there could be a termination without notice or salary in lieu of notice.
Where does your situation fit?
September 23, 2005

I have another query. If the termination is based on the violation of the Standing Order by the employee mentioned explicitly in the appointment letter, then in such case can the notice period be waived off?
Anuradha Zingade

This is an interesting question.
While the Appointment Letter does have have a sanctity of law between the employer and the employee, any partial rights provided in the said appointment letter could get struck down at a later stage (like in a court case, if the matter of termination does reach there!)
Also, the termination itself must be justified on the criterion of applicable law and principles of natural justice!
In such a case yes, termination without notice or compensation is posible!
Caution: If the Appointment Letter gives such a right as you claim, only to one party and not to the other, then it may may not stand test of law!
Is the matter clear?
September 24, 2005

I feel that if companys Employee Relations Team is the company is more of PEOPLE FOCUSSED than PROCESS FOCUSSED then he should get extra months pay...... regards scare_crow
Hi Samvedan,
Thanks a lot...
i agree that as far as possible, the separation should be amicable cos this ex-empoyee cud act as brand ambassador and recommend it as a place to work...

There can be no termination based on any violation of standing order WITHOUT holding an enquiry and affording an opportunity to the employee as to why disciplinary action should not be taken against him.
Termination, is possible only in terms of contractual appointment when the employee is recruited for a specific period and the period of service comes to an end. This is known as non-renewal of contract. The employee is entitled to pay for the period he was employed in the company.
Please be very clear that if you make any allegation or charge an employee for any misconduct mentioned in the standing orders, you must issue a charge-sheet and hold an enquiry. If the charges are established, the services can be terminated by way of dismissal, discharge depending upon the gravity of misconduct. CYRIL

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