Termination of Contract/Agreement
You want to terminate the contract/agreement or the specific worker through a contractor? If you want to terminate the agreement according to the terms and conditions set out in the agreement, you can do so. After the termination of the contract, the employment of workers through such a contractor automatically comes to an end. However, before that, you must ensure that all payments/wages or other benefits should be paid by the contractor to these workers. Otherwise, they can create an industrial dispute for non-payment of wages, etc. Before the full and final settlement of the vendors, you need to ensure all statutory compliance documents from the vendor regarding the workers who worked under this agreement.
Terminating a Specific Worker
In the second case, if you want to terminate the service of a particular worker involved in theft cases, strictly do not do it on your own as he is not your employee but the contractor's employee. Ask the contractor to file an FIR against the worker, take disciplinary action, and after due legal process, the contractor needs to discharge him from his service. As the principal employer, you should not be directly involved. Let the contractor handle the situation.
Regards,