Can we terminate the staff & the management cadre by quoting thee claue in the appointment order by mentioning the reasons of the companys detoriating condition
6th August 2019 From India, Chennai
Company,s deteriorating condition depends on various factors. You can not terminate any staff / Management cadre Staff, directly attributing responsibility on poor performance of the Company. A responsibility attribution is linked with terms such as fault and blame, with the individual held accountable. The staff has to be given an opportunity to defend the so called allegation. Failing which the termination is void.
I do not understand any such Clause, that kept the staff / Management staff, responsible for company's deteriorating in business. If at all any clause you have added in the appointment order, then the basic clause itself voidable.
6th August 2019 From India, Madras
Dear Bharathkumar,
Uncertainty of results and fluctuations in operations are the inevitable features of every business venture. Security of tenure is the expectation of every employee that makes him stick to an organization. Therefore, if you send people who have been with you for long by suddenly relying on such a simple notice clause in the contract of employment just because of temporary or otherwise manageable business vicissitudes, what will they do for their subsistence? Such a clause being opposed to public policy renders the contract void as per Sec. 23 of the Indian Contract Act,1872. That's the ratio decidendi of the judgment of the Supreme COurt of India in Central Inland Water Transport vs. Bolonath Ganguly. Therefore, don't try to do that. Instead explore the possiblities of other alternatives such a VRS and make their exit peaceful and prosperous.
7th August 2019 From India, Salem
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