Labour Law & Hr Consultant
Industrial Relations And Labour Laws
Sr. Hr Team Member
Nisha 1705
Hr Manager

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Dear Nisha,

You cannot terminate an employee without any reason but you can ask him to leave an organisation by paying the notice period as required for termination of contract of employment under the clause of the appointment letter.

Also if possible hence further please put a following clause in your appointment letter to terminate an employee for other reasons like:

Termination by the Company for Other Reasons: The Company may, in its sole discretion and business judgment, terminate your employment at any time. Any such termination would be subject to any and all applicable provisions concerning notice period, retirement etc. agreed to herein or any other agreements between you and the Company.

You shall handover the entire charge of the work, assignments and all files and documents and also all the assets of the Company immediately and in all eventualities before leaving the service of the Company. That in case you fail to do so, the Company shall be at liberty to initiate legal proceedings including lodging of FIR for committing breach of trust/theft and illegally retaining the documents/records, assets etc. of the company..

Please remember asking resignation is a wrong practice and an employee have a right to take a legal action against him and the organization.



From India, Mumbai
Dear Nisha,
Good Evening!
I think you are working with an Insurance/Banking/Finance Co.
Can you provide me detail of Termination & Promotion parameters mentioned in your appointment letter?
Then only I can give u a contcrete reply.
Waiting for your revert.
Sr. HR & Legal

From India, Mumbai
There is nothing wrong in terminating the service of a non performer. The law does not say that the employer should shoulder the burden of non performing employees. The law only states that no one should be terminated without giving him an opportunity to be heard or without following the principles of natural justice. What is required is to make the employee aware that he is a non performer and then take a call. If he has been in your service for at least one year, then naturally he should also be given prior notice and compensation as per ID Act, if the Act is applicable to him. In the case of managers or persons having supervisory powers, obviously, the matter of compensation does not exists also. Still, we should follow the principles of natural justice and give him time to improve and prior notice that if result is not given he would be out of the organisation.

In the case of probationers also the above procedure need not be followed and he can be terminated without notice if the terms of appointment provides so. Normally, non performance will be revealed in a period of six months or at least one year. At the same time, if you terminate an employee on the ground of non performance after so many years of his service, the same could be viewed as an attempt to victimise him. If to be terminated we should do it before he is confirmed and confirmation is a status change which is done after evaluating his performance.


From India, Kannur
Thanks Madhu & Abhay
I want to understand if any employer takes an action against any employee without any warning letter,than what option does an employee working at the level of manager has. Is accepting termination or resignation the only option available or he/she can approach any govt authority, if yes which one & how

From India, Gurgaon
Dear Nisha,

I think Madhu has brought out the essential legal requirements before terminating an employee on the ground of unsatisfactory performance or non-performance. If the contingency arises during the period of probation of the employee, as opined by Madhu, of course he can be sent out on discharge simpliciter. If it is any time after confirmation, you can not simply send him out for any reason whatsoever because the right to continuity of employment accrues to the employee by virtue of his substantial service in the organization. If he happens to be a workman under the I.D Act,1947 he can challange it before the Labour Court. Otherwise,in the present case he can prefer an appeal under the State Shops & Est Act. Even if there is a cause both reasonable and substantial, the termination should be preceded by an enquiry in this regard. The conditions, if any stipulated in the orders of appointment in this regard can not run counter to the applicable legal provisions of unilateral termination of employment by the employer.

From India, Salem
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