Navigating Employee Termination: What Should I Know About Labor Laws?

Hi, I am a new member. I need some ideas on the points that need to be taken care of before we go ahead and terminate an employee. More importantly, I need some guidance as per the labor laws.

Regards,
Lakshmi

Until and unless we know the details of the misconduct, we may not be able to suggest a course of action. However, termination is a last resort and can be very painful for both parties; the employee may suffer due to unemployment, and the employer may face legal repercussions if the terminated employee takes legal action.

Corrective Measures Before Termination

In such situations, it is important to first attempt to correct the employee through warnings and minor punishments. By taking a positive approach, the employee may realize their mistake and repent. If this approach does not yield results, then based on the evidence gathered, proceed with a domestic inquiry. Obtain a report from the inquiry officer and proceed accordingly.

Regards,
Kamesh

Conduct a domestic enquiry to determine the misconduct and provide the accused with an opportunity to defend his/her case. I recently shared my comments on domestic enquiries. You can refer to the following thread: https://www.citehr.com/382497-how-ha...ml#post1758227.

Ok...

Dinesh V Divekar
"Beware of false knowledge; it is more dangerous than ignorance."

Types of Terminations as per Labor Laws

There are two types of terminations as per the labor laws.

Punitive Termination

This occurs due to any misconduct committed by the employee, which is considered a misconduct as per the standing orders. In such cases, you are required to issue a charge sheet, ask for an explanation, conduct a domestic inquiry, and if the misconduct is proven, examine the past record of service. A copy of the inquiry findings should be supplied to the workman. Then, you need to determine if the misconduct is serious enough to warrant the punishment of termination.

Termination by Retrenchment

This involves surplusage of labor. In this type of termination, you need to have genuine reasons for surplusage in the category of workmen that you wish to retrench. The principle of "last come, first go" is to be followed, and retrenchment compensation at prescribed rates is to be paid.

Regards,
Ms. Sawant
[Email Removed For Privacy Reasons]

Steps for Fair Employee Termination Process

Give a fair chance to the employee through line management, meetings, and letters. Then proceed to issue a show-cause notice and charge sheet, and conduct a domestic inquiry to complete the process.

A worker can invoke the provisions of the Industrial Disputes Act (IDA).

Steps for Employee Termination

When it comes to employee termination, you need to take careful steps. From your end, you need to clarify why you are terminating this employee. At the same time, based on my knowledge, you need to follow the steps outlined below:

1. Issuing the notice
2. Show cause notice
3. Domestic enquiry
4. Findings
5. If misconduct is proven, then termination is appropriate.

If the termination is deemed illegal, the employee can escalate the matter to the labor court. Dear seniors, please suggest any corrections.

Regards,
Umesh

Like other HR veterans have said, termination is the last resort and should be done very carefully, as there are always challenges if not done in compliance with legal requirements in your country. One thing you should ask yourself is, if you were a judge in this situation, what would be your verdict? Then check if your decision will pass the test of law: What did the person do? Was he/she aware of the misconduct, or was he/she reasonably expected to be aware? Was the rule reasonable? Is he/she aware of the consequences of the misdemeanor? Was the rule consistently applied before? Did your actions comply with the principle of audi alteram partem?

Regards,
Mashilo

Suspension and Investigation Before Termination

Before termination, the accused is supposed to be suspended with half pay while investigations are ongoing. It is after the investigations that the accused faces the disciplinary committee, which decides his or her fate. The final decision should be just and fair. Before investigations, never terminate any employee because, in the end, the accused may end up in the labor court claiming that the termination was done unfairly.

Termination Process: A Step-by-Step Guide

Termination is the last step of the disciplinary process. You cannot terminate anyone abruptly as it may lead to legal problems. If an employee has committed an irregularity, the management should, in the first instance, call for an explanation from the individual to understand the employee's version. If the management is not satisfied with the explanation, then a preliminary inquiry officer will be appointed to determine the prima facie of the incident and ascertain the employee's responsibility for the irregularity.

If the preliminary inquiry proves the allegations, the management must appoint a regular Inquiry Officer to conduct a detailed investigation into the matter. The Inquiring authority must provide ample opportunity to the Accused Officer to present their statement of defense against the charges.

In the event that the charges are substantiated, the management must decide on the appropriate level of punishment based on the gravity of the offense. For minor irregularities, the management may impose light penalties such as a reprimand, withholding of increments for a specified period, with or without cumulative effect, while allowing the employee to continue in service. However, in cases of severe irregularities causing significant harm to the institution or substantial financial loss to the organization, the management reserves the right to terminate the services of the employee. Prior to termination, the employee must be given a final notice providing an opportunity to present any further evidence in their defense, in the interest of natural justice. Following the receipt of the final explanation from the employee, the management may issue a termination notice.

Though this process may seem lengthy, it is essential for the appointing authority to adhere to the detailed procedure to prevent any potential legal issues arising from the disciplinary proceedings.

Employee Rights During Layoffs

In most cases, when an employee is being laid off, they have certain rights and entitlements that protect them from unfair dismissal. Employees have the right to seek clarification on the reasons for their termination and can inquire about any available options for severance pay or other benefits. Additionally, if an employee believes they have been wrongfully terminated or discriminated against during the layoff process, they may choose to take legal action against the company. It is important for employees to understand their rights and consult with an employment lawyer if they are considering legal action.

I am with Suri Komakula. But I want to know what will be the place of domestic inquiry? Is it the place of the incident or the place of the company office?

Understanding Lay-offs and Legal Rights

The company has the right to lay off workmen for valid and genuine reasons. However, if the number of workmen exceeds 100, government permission is necessary. The workman can challenge if he is laid off without following the provisions of the Industrial Disputes Act.

Regards

I am a new member and I need some ideas on the points that need to be taken care of before we go ahead and terminate an employee. More importantly, I need some guidance as per the Labor Laws.

Regards,
Lakshmi

Understanding Termination Under Labor Laws

At the outset, please remember that termination is considered the 'Capital Punishment' under Labor Laws. You do not hang a person without any strong reason. Hanging a person until death is only done in the rarest of rare cases. Similarly, termination is done only in the rarest of rare misconducts, and not as per the whims and fancies of HR or Management. Since you have not mentioned the reasons for the decision on termination (and also I would not prefer to go into it since your query is more of a generalist query), I would ask you to remember the following points as per the legal requirements:

• Conduct a fair Domestic Enquiry as per the 'Principles of Natural Justice'.
• Ensure there is no bias or preconceived notions during the enquiry.
• Fairness must be actually ensured and not merely exhibited.
• If the employee is a 'Protected Employee', then go for a 'Permission Application'.
• If any court case/conciliation is pending, then go for an 'Approval Application'.
• 'Permission' or 'Approval' wherever required is not merely a 'Technical Requirement' but a 'Mandatory Legal Requirement'.
• To the best possible extent, avoid a 'Termination Simplicitor'.

You may revert for any further clarifications. But, always remember to put yourselves in the shoes of the workman whom you want to terminate and find out if the misconduct really warrants termination.

Take Care

Regards,
B.R. Dayaram

Hi all, what is the minimum criteria for retrenchment?

With regards,
Ashi Agarwal

Understanding Retrenchment

Retrenchment is a process to reduce the number of employees or to cut down the cadre strength due to a layoff declared by management to avoid an economic crisis. This action is also undertaken to reduce expenditure on establishment as a fiscal policy to economize the institution.

Thank you for your attention to this matter.

Retrenchment Criteria and Legal Compliance

Retrenchment should be carried out in accordance with the provisions of the Industrial Disputes Act and for valid reasons. If the total workforce exceeds 100 workmen, government permission is required. Retrenchment should be categorized based on specific criteria.

Regards,
Adv. Savant
[Phone Number Removed For Privacy Reasons]

In case the accused person does not attend before the Inquiry Authority repeatedly, the Inquiry Authority can proceed with the inquiry in absentia, based on the available material records. However, the Inquiry Authority must maintain a record of communications sent to the accused via registered post or special messenger as evidence of having issued valid communications and obtain a valid acknowledgment from the accused for record-keeping.

Regards

Terminating a Union Leader in a Manufacturing Company

Please tell me how to terminate an irresponsible, bad-mannered, and culpable union leader from the manufacturing company?

Regards.

Procedure for Terminating an Employee for Misconduct

If the management proposes to terminate any employee who has committed irregularities, the first initial step is to issue a charge sheet. This charge sheet should duly indicate the imputations of misconduct and any irregularities, giving the employee an opportunity to submit their statement of defense. The employee should be given 14 days to submit an explanation.

After receiving the explanation, and considering the seriousness of the irregularities, the management must appoint an Inquiry Authority to conduct a detailed inquiry into the charges, irregularities, or imputations of misconduct. The Inquiry Authority is required to conduct the inquiry according to the rules and regulations and provide an opportunity for the accused officer to present their defense statement, in the interest of natural justice.

After receiving the inquiry report from the Inquiry Authority, if the charges, misconduct, or irregularities are proven beyond doubt, the management must issue a final show-cause notice to the accused officer, asking them to submit their final statement.

Regards.

Dear All, Please tell me how to terminate an irresponsible, bad-mannered, and culpable union leader from the manufacturing company?

Disciplinary Action Against a Union Leader

A union leader is not immune from any disciplinary action. If he is rude, ill-behaved, and arrogant, you can collect reports in writing from managers or supervisors who have faced such behavior. Conduct a domestic inquiry against him. If the misconduct is proven in the inquiry, and his past record is also poor, you can send him a copy of the findings and call for his comments.