Dear Jitendra Singh,
Your sequence of taking action is rather strange. First, you have suggested issuing a Show Cause Notice. An SCN is normally issued when you are about to make a decision regarding final punishment. In your post, it seems as if an SCN is just a caution letter issued to a delinquent employee.
Secondly, you have suggested giving him a Warning Letter if the employee is found sleeping for the second time. Here, you need to ask for an explanation for the reason for this repetition and, if necessary, issue a Warning Letter.
Thirdly, you suggested to Terminate him upon knowing the reasons for his repeatedly falling asleep. However, as a last resort, if he is found habitually sleeping during working hours, he should undergo a medical check-up. An SCN should be issued to him to determine the cause of the recurring incidences, followed by an inquiry and a well-reasoned decision regarding the punishment to be given or not. If punishment is deemed necessary, the quantum of punishment should be decided, or remedial measures should be suggested to prevent such incidents from occurring.
Termination alone is not the solution.
You are absolutely correct, Mr. Bhanot, and this is an ideal Line of Action. I suggested the SCN primarily to understand the cause/reasons for sleeping during working hours. When we receive the explanation against the SCN, we should then give him a warning letter/caution letter depending on his explanation.
I agree that termination is not the solution, but in some cases, it becomes necessary. We should terminate an employee when it is proven through a medical check-up/domestic inquiry that the employee is habitually or willfully engaging in this behavior. Failing to take action will have a negative impact on other employees. Sufficient chances should be given to the employee before such action is taken.
Regards