Long-term Employee Termination for Policy Breach: Do We Owe Notice Pay?

Hi!

I would require suggestions from all senior members of this forum.

If a very old employee (having almost 13 years tenure) is asked to resign or is terminated because the person has not followed the company's business norms and policies while dealing with customers and further has not informed the management, which we only came to know through an email from the customer's side, and this has badly hit our reputation.

Now, my question is, will we need to give the person a month's notice pay (i.e. salary) if the person is asked to leave on the same day.

I am herewith furnishing the writings as they appear in our appointment and confirmation letter.

As written in the Appointment letter:
Notice Period: During the probation period, notice for termination of employment from either side shall be just one day. After confirmation, such notice period from either side shall be one month.

As written in the Confirmation letter:
Your appointment is now terminable with one month's notice on either side without assigning any reason.

Expecting replies from all, which will help us to act accordingly.

Regards,
Suchandra

Hi Suchandra,

Since it is mentioned in the clause in the Appointment Letter, you will have to pay the employee the whole month's salary. If you don't want the employee to come from the next day, settle their dues by paying them the salary till the date they have worked, along with their PF, Gratuity, and other dues.

Thanks!!

Regards,

Dhoop

Hi Dhoop,

Thanks for your response. We will definitely pay the salary along with benefits due to her till the day she has worked. But my query is, "Do we need to still pay one month's salary" in case we waive off her notice period?

Regards,
Suchandra

I think there is a clause in labor law stating that the employer shall have the right to terminate the employee without notice period in some cases as mentioned below:

a) If he commits a fault resulting in a serious loss to the employer.
b) If he repeatedly disobeys the instructions of the employer, except in cases where the safety of laborers and security of work are at stake. In such cases, the repetition is not considered a condition. However, in all circumstances, the provisions of the approved penalty regulations shall be observed.
c) If he/she has been convicted of a crime affecting honor, honesty, or morality.
d) If he/she commits an act against public morality in the workplace.

Please check the provisions with a legal consultant.

Thanks, Nawas.

Any further information on this area? Seniors, no contribution from your side? Please provide your valuable suggestions.

Regards,
Suchandra