Is Notice Pay Required for Termination After 6 Months Under Delhi and Andhra Pradesh Laws?

An employee working in a company incorporated under the Companies Act 1956 has terminated his services after 6months of service(under extended probation period) without giving a notice pay.This company is having Registered Office in New Delhi and Head office/Corporate Office in Hyderabad and please clarify whether he gets notice pay of 1month for termination of employment under the mandatory provision of section 30 of the Delhi Shops and Establishments Act, 1954, the service of an employee who has put in more than three months' continuous service cannot be terminated without giving him at least one month's notice in writing or one month's wages in lieu of such notice except where the termination of service is for misconduct or as per Andhra Pradesh Shops& Establishment Act 1988

Dear,

If the employee is not covered under the definition of the 'workman' in accordance with Section 2(s) of the Industrial Disputes Act, 1947, then the employee is entitled to have one month's notice or notice pay, whichever the case may be, according to the Delhi Shops Act. If both acts are applicable simultaneously, then the action taken under the ID Act will prevail.

Opinion submitted as requested.

Thanks, Mr. Khola. How can he know whether he is covered under workman or not? Can we understand that if he is getting ESI benefits, he can be considered a workman and if he is not, as mentioned by you. Can he quote your opinion while replying to the legal notice served by his company? Can you offer legal/labor consultancy services in this regard to him? If yes, please call me at 09246475056 and please let me know your contact details.

Dear anmkdsarma,

In these sorts of cases, the appointment letter exit clause plays a crucial role. If you can provide details on the exit clause, reasons for termination, and additional information, it would be helpful.

Thank you.

When you say that an employee has terminated his services, do I understand that he has submitted his resignation, or do I infer that his services have been terminated by the management?

In either case, the factual situation will be as follows:

He is covered under the Delhi Shops & Establishments Act. Under the circumstances, since he has already worked for more than three months, one month's Notice Period or one month's salary in lieu of such notice is mandatory. The Delhi Shops Act stipulates that if an employee has worked for three months or more, he is obliged to give one month's notice to the Employer in case he resigns. Likewise, if his services are terminated by the management, he will have to be given one month's notice or one month's salary in lieu thereof.

It will also be appropriate to review his Appointment Letter and consider the stipulations contained therein. If the terms and conditions governing "termination/resignation" are more favorable, then follow those.

Please feel free to contact me anytime for any HR-related issue.

Best Wishes,

Vasant Nair