Do We Need To Give The Reason When We Are Firing An Employee?

Hi Nagaveni,
The main reason for removing an employee is based on one's performance, in case the performance is not satisfactory, you can always guide the person still it is unsatisfactory, you need issue warning letters, to observe the candidate improves, still improvement is not found you can ask the employee to leave.
However, three months salary paid to an employee and can be removed according to the whims and fancy of management is not the correct way.
Due course of law is to be followed.

if the employee is not coming under the purview of workmen under the ID Act, then pl. go through clause mention in Appointment letter of Notice period. where in general every employer is writing that, Notice Period- the management expects you to be with the company for a long time. however, this employment is terminable by giving One month/two Month whatever there notice.
So as per aforesaid, if the employee is not coming under the purview of workmen under the ID act, you may release him by only giving him Notice pay with all dues.

Thank you all for your advice, suggestion and comments!
I had a smooth firing session last week with one of our employee. We had many reasons to fire him and the main reason was though
he was a Team Leader never used to take any responsibilities and he was acting kind of Union Leader and recently started misguiding the other staff in the department.
We had given him oral warnings but it was never written, in fact till last month we never fired anyone in our company. And I feel that is the reason most of our employees think, it is okay whatever they do here, nothing is going to happen..we wanted to change that impression.
The reason for asking above question is, we knew whatever reason we give he is not going to accept it because he is that kind of a person. And we never wanted to get into unnecessary arguments which might lead to something else.
We have given all the benefits to him whatever he was eligible for and sent him.
Thank you!
Happy weekend!

Yes, before firing an employee.. show cause should be given to him explaining the reason. Because , a company just cannot fire someone without any reason. Even it will be more appropriate, if a company issues warning letter first and then later show cause. Finally, a termination letter with reason. Everything has to be handled professionally.

These days companies often resort to downsizing and in the process senior employees (read highly paid employees; even if they worked with the company for many years) become the first target, to be replaced with the young employees (who earn much less). Such employees do not enjoy any protection of law (to my knowledge) and therefore have to accept the settlement companies pay them. In such cases payment of notice pay, termination benefits, leave pay etc is payable and some companies pay an additional severance pay also.
A S Bhat