Navigating Manager Termination: Legal Steps and Gratuity Concerns

I would like to terminate a manager who has worked in my company for more than 5 years. I found out that the Industrial Disputes Act of 1947 has excluded workmen who work in a managerial capacity. Is there any law governing retrenchment?

Additionally, do I need to pay gratuity under the Payment of Gratuity Act of 1972 if his basic salary is 1.5 lakhs?

Thank you.

Dear friend,

The heading of your post is "procedure to lay off". In the main body of your post, you have written about "termination" and "retrenchment". Layoff, retrenchment, and termination are three independent concepts. Their governing conditions are also separate. The ID act has clearly defined all these concepts. You may refer to them.

Why do you want to terminate the manager? Was he involved in some misconduct? Was the misconduct so grave that it warrants his termination? Have you conducted a domestic inquiry? Many questions arise.

Nevertheless, these are layman's opinions. Legal experts such as Mr. TK Madhu or Mr. RN Khola are the right persons to address your query.

Thanks,
Dinesh V Divekar