Facing Challenges with Labor Law and Worker Termination in Himachal Pradesh: How Do You Manage Threats of Legal Action?

Hi, I am working in a manufacturing company as an HR executive in Himachal Pradesh. In Himachal Pradesh, labor law is very strict, but it is also somewhat challenging in some aspects. Some laborers have inappropriate attitudes and behave disrespectfully. However, since they are on our payroll, we are finding it difficult to address the issue. They often threaten to take matters to the labor court when faced with termination.

Recently, we issued a one-month notice to ten employees due to decreased production this month. Unfortunately, they caused a disturbance and threatened to involve the labor inspector. I am seeking advice on how to handle such situations effectively. Thank you.

Hi Amit,

Firstly, your company should have a legal mentor. Secondly, without consultation with your company's labor consultant, you cannot issue any termination letters to employees, which please note. I strongly feel that the employees at your esteemed organization are misbehaving because you have given them the leverage to do so. Probably, the reason could be that your company employees must know better than you about termination laws.

However, the best suggestion that I would give you is to immediately consult your company's legal mentor or labor consultant and check the do's and don'ts applicable in the termination law. I'm sure this will solve your problem. Your company's top management can help you in this. You should also ensure that the termination policy is mentioned in the appointment letter and you can also put it up on the notice board if required.

Regards, Sushma

Hi Amitranjan,

Please note that for dealing with any type of misconduct of workmen/employees, you have to go by the Standing Orders applicable to your company. Please check whether you have your own certified standing orders or the model standing orders.

All types of disciplinary actions must be based on the principles of natural justice, which in short means 'giving an opportunity to the other person to be heard'. It is therefore necessary that for any act of omission or commission, like misbehavior, less production, arrogant behavior, etc., you issue a charge-sheet to the employee mentioning clearly the charges against him. You should thereafter hold an inquiry and based on the inquiry report take further action. If you straight away terminate without following the procedure, the court may term it as unfair and the employee may have to be reinstated with back wages.

It has been rightly suggested that you should consult a legal person to make yourself familiar with the do's and don'ts. Avoid any hasty action in such matters.

Cyril

Dear Amitranjan,

Mr. Cyril has given you the right suggestion. You will have to follow the procedure of natural justice. A domestic enquiry should be held by appointing an outside enquiry officer, and based on his findings report, you can take action only after consulting our top management/legal advisor.

You will also have to consider the industrial relations matter, as there may be repercussions after taking any action.

The steps for taking any disciplinary action may be summarized as follows:
1. Repeated verbal warning (if possible)
2. Written warning
3. Show cause
4. Again show cause
5. Charge sheet
6. Charge sheet with suspension
7. Domestic enquiry
(All these steps can be taken for a similar kind of misconduct)

If there is a Trade Union, you can give them one chance to approach.

Please note that your termination should be according to your STANDING ORDER as mentioned by Mr. Cyril.

rrtpan

Hi,

I agree with all the above suggestions. First, before taking any such actions against employees, you need to consult your company's legal advisor (or if you don't have such a person, you can seek the help of any other legal professional who is knowledgeable about these issues, but it is always better to have your own legal advisor) if you are going to face any legal problems due to this action.

Another doubt I have is regarding your statement that, as the production required is less, you have issued termination letters (of course, misconduct is also an issue). In this scenario, as the company aims to reduce the number of employees, you need to consult the legal advisor again to determine if you need to provide any compensation to them since you are letting them go due to lack of work. However, if the issue is misconduct, as others have mentioned, you need to follow a few procedures:

1. Verbal warning
2. Written warning to improve their conduct
3. Written notice specifying a time period during which they are under observation
4. Organizing a hearing
5. Finally, if he/she doesn't change after these actions, termination.

Sirisha Reddy

Hi Amit,

I think, at first, you need to talk with the workers who represent the whole (in case of a union; union representatives). Tell them that if this continues, you have no other option but to proceed with the disciplinary procedure. After that, carry out some disciplinary proceedings and give mild punishments like warnings, suspension for 5 days, and slowly build up a case. Once you start this, workers will fall in line.

If the situation continues, then go for termination, but you must follow the proper disciplinary procedures. You may click on the link below to get assistance on how to proceed with a proper disciplinary procedure that will stand in the labor court, i.e., is legal, transparent, and binding:

Regards,
SC