Sudden Termination Without Cause: Is It Fair to Pay Only Basic Salary as Notice Pay?

Dear Sir, I need your kind assistance on the subject. Recently, one of my friends was designated as a joint manager (salary range approximately CTC 56K) and employed with a private company in Varanasi. He has been suddenly issued a two-line termination letter with immediate effect without any reasons specified, as per the clause mentioned in his appointment letter. Additionally, he has been paid three months' notice pay, which is only his Basic salary, whereas the salary includes other components.

Grievance Redressal for Employees Not Covered Under ID Act

I would like to inquire about the grievance redressal machinery available for such employees who are not covered under the ID Act or workers' protection. Is the method of sudden termination valid without any formal procedure? Also, is paying only the 'Basic' salary as notice pay justified? If he had been asked to continue working until the completion of his three-month notice period, he should have received all the components agreed upon in the appointment letter.

Kindly provide your valuable comments.

Regards,

Could you please help me with the legal aspects involved in terminating an employee from an IT/KPO company to ensure that the employee does not file a case against the company at a later stage? Please revert ASAP. It's very urgent.

Legal Recourse for Unjust Termination

The affected person can file a case against his termination. If he wins the case filed against his company, surely the company has to give him employment with retrospective effect.

Legal Considerations for Employee Termination

Yes, I understand that. Keeping that in mind, can you tell me what legal aspects the company should consider to ensure a clean chit after terminating an employee? Can you help me with an authentic termination letter and settlement letter? What other documentation should the company prepare? Please help.

Regards

Severance Pay and Final Paycheck Timeline

Also, by when should the company give the employee his severance pay? How much and by when (legally)? When should the company issue his last paycheck (as per law)?

Thank you for reaching out with your questions regarding severance pay and the issuance of the final paycheck.

In terms of the legal requirements for providing severance pay and the timeline for issuing the last paycheck to an employee, it is essential for the company to adhere to the relevant laws and regulations to ensure compliance and fairness in employment practices.

If you have any further inquiries or need clarification on these matters, please feel free to ask.

The definition of workmen is very broad; in view of this, the nature of work performed by the employee determines whether the person falls under the ID Act or not. I suggest you advise your friend to approach the conciliation officer and present his case. If your friend is not covered under the ID Act, he may seek recourse in the Civil Court for breach of contract and appropriate damages.

Regards,

Dear Subhash, For employees not covered under the ID Act, legal remedies are available in civil laws. Removal/termination from employment can be challenged in civil courts if all benefits due to them are not settled and all employment conditions are not met. Reinstatement is not possible. Instead of reinstatement, they can claim damages and compensation.

Regards, Kamal