Labour Law & Hr Consultant
Partner - Risk Management
Sr. Hr Executive
Hr Executive Delhi Ncr
Unnikrishnan5470 Executive
+1 Other

Please put your insight on the topic that an employee has been terminated from my establishment. I am having a doubt that how many months salary should we give to that terminated employee.
Dear Unnikrishnan,
It is clearly depends on the appointment contract signed between company and the employee. See the termination clause, as the number of days or months laid down in that clause needs to be paid to the terminated employee.
As per any Act are we liable to pay 2 months salary for the terminated employee?
Dear Unnikrishnan,
Termination if is done on proved misconduct is different and termination of other reasons can be different.
Please check on the same and revert.
Anyhow it cannot be advance payment if it is termination unless is lay off.
it is misconduct and we had finished the enquiry process by an enquiry officer. in light of his findings we need to terminate the employee. In that case are we supposed to give him 2 month salary
How long did the enquiry take place? Did you pay him the subsistence allowance for such period.
If your company policy is that after enquiry you need to pay two month salary after termination do that also and close his matter.
Hope you have ensured ID act procedure before giving him termination.
The matter depends on the seriousness of the issue and the rules provided in the standing orders
The management can terminate with immediate effect if the inquiry office so decides
Two months salary basic ya horse what pay...for permanent employee for Pvt Ltd. Company...
Two months salary basic or gross what pay at the time of termination..
Termination of service of an employee by the employer may take several forms such as discharge, retrenchment, retirement, dismissal etc. Therefore, the aspect of negativity can only be ascribed to termination which carries in itself the stigma of punishment for some misconduct or punitive termination which is generally called as dismissal. The question of serving notice of the fact of termination arises only when it is sudden and not punitive. That's what the definition of the term " retrenchment " u/s 2(oo) of the Industrial Disputes Act,1947 means and hence the prescription of one month notice. In such a situation, the period of notice can be traced back to the relevant provision of the ID Act,1947 or any other Law applicable to the establishment and having such a special provision. Since the termination mentioned in the thread is dismissal, no necessity to give any notice or pay in lieu thereof.
Hello Unnikrishnan
Please, clarify whether the employee is a workman or in managerial cadre so that the members can advise you properly.
HR & Labour Relations Adviser
Navi Mumbai
Dear Member,
The grounds on which termination action was initiated determines the period of notice pay. The terms and conditions of employment, the length of service are also the contributing factor to decide the notice pay.
The compensation of termination should be paid along with notice of termination, this is a right position in law. If the termination was not done with due procedures, it makes termination bad in law.
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