Can We Legally Terminate or Suspend an Employee? Seeking Guidance on Processes and Reasons

Legal Guidance on Employee Termination/Suspension

Please someone guide us: legally, can we terminate or suspend any employee? If yes, then what are the processes, and if no, then why not?

Regards,
J.N. Modi

Thank you very much. Yes, as per the ID Act of 1947, the purpose of retrenchment requires that the workman must have been employed for a period of not less than twelve months and that during those twelve months, he had worked for not less than two hundred and forty days.

However, my confusion lies in the notice period as per the appointment letter or any factory covered under the Standing Order Act of 1946. This point is often utilized by the employer.

Regards,
J. N. Modi

Definition of "Workman" Under the Industrial Disputes Act, 1947

As per the Industrial Disputes Act, 1947, a "workman" means any person (including an apprentice) employed in any industry to do manual, unskilled, skilled, technical, operational, clerical, or supervisory work for hire or reward. This includes individuals whether the terms of employment are express or implied. For the purposes of any proceeding under this act in relation to an industrial dispute, it also includes any such person who has been dismissed, discharged, or retrenched in connection with or as a consequence of that dispute. However, it does not include any individual who (i) is subject to the Air Force Act, 1950 (45 of 1950), the Army Act, 1950 (46 of 1950), or the Navy Act, 1957 (62 of 1957), or (ii) is employed in a supervisory capacity, draws wages exceeding ten thousand per month, or primarily performs duties of a managerial nature.

Thanks,

Regards,
J.N. Modi

As for the staff cadre, you can act as per the appointment clause notice period. For workmen, you are required to provide support and state the reason for doing so. Otherwise, this may be challenged by the workmen in the labor forum, leading to possible reinstatement at a later stage. In any case, you must adhere to the principles of natural justice and the proper procedure, regardless of the cadre.

Thank you.

Yes, you can terminate an employee with a valid reason and through a proper procedure. First, you have to give them a Charge Sheet. In this Charge Sheet, you can mention all charges, misconduct, misbehaviors, and others. Then, you can conduct an inquiry on them. After the inquiry results, you can terminate them. This is the legally correct way to terminate an employee.

Regards,
Purushottam Dass Matta
Asst. Manager (HR)

Thank you for your input. I agree with you, but I am confused about the notice period according to the appointment letter or any factory covered under the Standing Orders Act of 1946. This point is frequently utilized by the employer.

Thank you.

Regards,
J.N. Modi