Gannahope
Asst.commissioner Of Labour..a.p.
KK!HR
Management Consultancy
Vaishalee Parkhi
Hr Consultant & Trainer
+3 Others

Thread Started by #T.Thirumurugan

Dear sir,
One of our employee has been terminated with one-month notice period during probationary period (12 months) due to lack of work in industry
His total service is 4 months 6 days. His probationary period is 12 months. Here his probationary period (12 months) is not completed
Following clause has been included at the time of issuing offer letter
“You will be on probation for a period of 12 Months. Upon completion of probation your services will be reviewed and accordingly your employment will be confirmed or the probation may be extended at the discretion of the company.”
Now, our query is as follows
(i) Is his termination legally correct
(ii) Is his termination violating any labour law (The Industrial Disputes Act, 1947, etc.)
(iii) Has company rights to terminate employee during probationary period due to lack of work in industry by giving one-month notice on either side or one-month salary in lieu thereof
(iv) Please provide procedures under labour law for dismissal, discharge, removal, retrenchment, termination of workman, suspension of an employee, etc.,
(v) Is there any possibility to employee to take any legal action under labour law against company if he has been terminated with one-month notice period during probationary period (12 months) due to lack of work in industry
Please clarify
Thanks with Regards,
T.Thirumurugan.
28th May 2018 From India, Hyderabad
The queries are answered as follows:
(i) Is his termination legally correct: To put it better, it is not illegal to terminate a probationer, with just a little more than 4 months' service. The important point to note is that being on probation an employee is being assessed for his suitability for long term employment, he has not been found fit as yet, the basic premise being there is sufficient work load on long term basis to sustain that employment. But if the basic premise itself is eroded then nothing remains.
(ii) Is his termination violating any labour law (The Industrial Disputes Act, 1947, etc.): No it is not violative of any law including ID Act
(iii) Has company rights to terminate employee during probationary period due to lack of work in industry by giving one-month notice on either side or one-month salary in lieu : Yes, for the reasons explained above.
(iv) Please provide procedures under labour law for dismissal, discharge, removal, retrenchment, termination of workman, suspension of :an employee, etc.,
Dismissal, removal are termination of service of an employee as a result of disciplinary action whereas discharge also amounts to termination of service, it could be on loss of confidence or any other reason, but to be enforced as per terms of appointment regarding notice period. Retrenchment is a technical term employed in the ID Act to denote the special terms and conditions of terminating the employees under the 'last come first to go' principle. Suspension of an employee does not terminate the master-servant relationship, in other words the suspended employee continues to be employee but the employer has chosen not to take the work from him or her pending the disciplinary action against him or her. The procedure for disciplinary action inclusive of suspension has been detailed in this forum too many times and is hence not repeated. The retrenchment procedure is given in Chapter V of the ID Act and depending on the size of the organisation concerned and the statutory conditions therein have to be strictly ensured. Discharge or the discharge simplicitor as it is properly called , simply tells the employee that his services are no longer required at the end of the notice period or on payment of its cash equivalent. The detailed procedure to be adopted depends on the facts of the matter and needs more elaboration of the factual context.
(v) Is there any possibility to employee to take any legal action under labour law against company if he has been terminated with one-month notice period during probationary period (12 months) due to lack of work in industry: It is NOT advised so.
28th May 2018 From India, Mumbai
While it is unfair to terminate a probationer, just because there is no work, legally nothing much can be done.
While hiring/employing the company is expected to study all factors, cost impact, role etc.
It is a company failure.
The poor employee would have looked for some other job and not joined but for the flawed planning of the company.
29th May 2018 From India, Pune
This is a bad on part of any establishment to terminate an employee on vague ground that there exist no work in industry after taking into job.
However, the termination stands legally correct as the employee was on probation and with notice.
No one can prevent someone if want to take the help of judiciary. If the employee challenges his termination, the management has to offer the ground compelled for termination before the authority.
30th May 2018 From India, Mumbai
Hi Thirumurugan,
Terminating a employee legally not an a issue. however, before recruiting any employee company need to assess the requirement, based on which HR need to hire. Terminating a employee not only effect employee as well reputation of the organization.
7th June 2018 From India, Bangalore
With the insights above, I think it's unfair for the concerned employee. Company could have given him advance notice that he should start searching job OR at the most ask him to give a resignation letter. Has company handed over him 'Termination letter' stating the reason of no work volume with the company?
7th June 2018 From India, Pune
Sir it seems that it is a layman's query.
The above employer has framed company recruitng norms as his wims and fancies...Standing orders act will guide you by search in google..and other relevant labour acts also.
Let actual sufferer present his grievance before this forum instead of layman's hearsay questionere.please.
29th June 2018 From India, Nellore
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