Can Employers Really Fire You Without Notice or Reason? Let's Discuss Your Rights

Can an employer terminate an employee without any notice period? Will the employer have the right to terminate an employee without any reason, i.e., simply by saying cost-cutting?

We can terminate without notice pay, but we can't terminate him without reason. If he takes the issue to court or the labor commissioner, it may become a problem. Instead of terminating him, we can ask him to submit a resignation letter.

I think you can terminate the employee for such a reason, but you can give him one month's salary so that he has a period of one month to search for a new job. You can also help him by stating that you will provide a relieving letter on the date he chooses as soon as he secures a new job. This approach will not damage his professional image either. I hope I am right.

Regards.

Yup, but the thing is that it is not necessary to provide the notice pay. It's at the discretion of the employer.

One of my friends was working in a school for 1 1/2 years, and suddenly one day, they asked her to leave the school, and today is her last day. When she asked for the reason, they told her it was due to cost-cutting.

So, what should she do? Please advise.

The company can't simply terminate the service without a strong reason. Although on disciplinary grounds, a proper inquiry must be conducted. It must be based on bona fide and not mala fide to ensure natural justice and fairness.

In your case, I found the reason is to cut operational costs. The cost for operation includes the labor cost. If the company needs to cut the labor cost, they can't simply fire the staff.

Steps to Address Cost-Cutting in Labor

1. The company must cut non-productive costs first, such as luxury expenses.
2. Terminate the service of foreign workers or contract staff.
3. Apply the LIFO system - last in, first out.
4. Identify which department to eliminate (job redundancy) and transfer the staff to another department to utilize the manpower capacity.
5. Implement a Mutual Separation Scheme or Volunteer Separation Scheme.

Thanks.

Based on the terms and conditions mentioned in your letter of appointment, it should be considered whether you are on probation or not.

Termination Without Specific Reason

Without a specific reason, we can't terminate any employee. If we have terminated an employee based on performance, then we will give three months' salary of basic pay and pay the total leave balance, if any.

An employer can terminate the services of an employee without notice only on this ground alone: if the employee commits any criminal offense and is charged by any court for the offense committed. Otherwise, all terminations must be clearly reasoned out with justification. Also, the principle of natural justice needs to be complied with, which includes the opportunity of being heard.

Later, steps may be taken either to suspend the employee or terminate them based on the standing orders of the company. Any gross misconduct committed may be the reason for the employee's suspension or termination based on the findings of a domestic inquiry.

Regards,
Jay

Immediate Termination Due to Gross Misconduct

An employee can be terminated with immediate effect without any notice period if they are found to be indulging in gross misconduct such as rioting, manhandling, intentionally damaging company assets, stopping production, or being caught red-handed in theft. However, a company should always understand that the attitude of an employee is a reflection of the company's attitude towards them.

Notice Period for Employee Termination

Generally, for a confirmed employee, the organization gives a 1-month notice or as mentioned in the appointment letter. Otherwise, if they are terminating an employee with immediate effect, they have to pay 1 month's salary to him/her.

On the contrary, for a non-confirmed employee, they can terminate him/her with a 1-week notice period. Even worse, they can provide any reason for it.

Subject: Termination

I was terminated from my previous company without a notice period due to a salary dispute. If I join another company, will I face any problems?

Regards,
Debashish

[QUOTE=debashish_aul;1708235] Hi, I am Debashish.

Subject: Termination

I have been terminated from my previous company without a notice period due to a salary dispute. If I join another company, will I face any problems? I left that company one and a half months ago and have been searching for a new job. I am also showcasing my experience from that company until now.

Please suggest a good outcome.

Yes, termination is possible without giving any notice, but the employer should compensate the same with notice salary.

Regards,
Sumit

Without a specific reason, we can't terminate any employee. If we have terminated any employee based on performance, then we will give three months' salary of the basic and pay the total leave balance, if any.

Which Rule Says Three Months?

It needs to be as per the company rules and appointment letter. Generally, it's one month.

I had a chance to read your articles on termination because I am working as an HR manager in a reputed company. One morning, my Managing Director called me to terminate a staff member. I asked for the exact reason, and he instructed me to prepare a termination letter based on poor performance. However, the individual in question had raised concerns against the management. At this point, I attempted to convince the management to issue a warning letter instead, but my request was denied. In this situation, the role of an HR manager can feel like a "scapegoat."

Thank you