Dear Friends and fellow members,
First of all let me clarify the situation assuming certain things like the employee has completed 240 days of service in last 12 months and the management is willing to terminate his service due to some reason and above all he fall under the definition of workman..
1. management
can terminate the employee by following the course given in the industrial disputes act which has a clear provision of retrenchment of the employee. See below section
"[25F. Conditions precedent to retrenchment of workmen. —No workman employed in any industry who has been in continuous service for not less than one year under an employer shall be retrenched by that employer until—
(a) the workman has been given one month's notice in writing indicating the reasons for retrenchment and the period of notice has expired, or the workman has been paid in lieu of such notice, wages for the period of the notice;
3[***]
(b) the workman has been paid, at the time of retrenchment, compensation which shall be equivalent to fifteen days' average pay 4[for every completed year of continuous service] or any part thereof in excess of six months; and
(c) notice in the prescribed manner is served on the appropriate Government 5[or such authority as may be specified by the appropriate Government by notification in the Official Gazette]]. "
2. if Management wants it can terminate the workman by giving him his applicable dues and retrenchment compensation. but keep in mind and get his sign on the letter saying that he is forgoing his right to get re appointed as per section given below.
2[25H. Re-employment of retrenched workmen. —Where any workmen are retrenched, and the employer proposes to take into his employ any persons, he shall, in such manner as may be prescribed, give an opportunity 3[to the retrenched workmen who are citizens of India to offer themselves for re-employment, and such retrenched workmen] who offer themselves for re-employment shall have preference over other persons.]
STATE AMENDMENTS
Andhra Pradesh. —(a) Renumber section 25H as sub-section (1) thereof and after sub-section (1), as so numbered, insert the following sub-section, namely:—
“(2) Where a closed unit is re-opened the workmen on the roll of the unit immediately before its closure shall be given an opportunity to offer themselves for re-employment in the manner provided in sub-section (1).”
keep this section in mind before reemploying any person and prepare yourself before it make any trouble so to evade such condition get it in written that he is forgoing his right to claim reemployment preference at the position.
3. if he himself wants to leave the organization he will not be entitled to any retrenchment compensation.
4. gratuity and other dues like PF etc if applicable in the case also have to be settled forthwith.