Navigating Termination: Do We Owe Notice Pay to a Casual Worker with No Written Contract?

There is a case concerning one of our employees, a casual worker engaged by us for miscellaneous work at one of our sites. We provide him with a fixed salary. Due to repeated misconduct, we wish to terminate his employment. However, he is planning to leave for his daughter's wedding. As we inform him about his dismissal, he is requesting one month's notice pay along with his leave bonus.

Guidance Needed on Employment Termination

Could you please guide me with your valuable response? Do I need to pay him according to the Contract Labor Act? He has been with us since April '12, and we appointed him verbally. There is no written correspondence between us.

Regards,
Balvant Dodiya
HR Generalist
[Phone Number Removed For Privacy Reasons]

Since he joined only in April 2012, you are not bound to pay any compensation. You can just ask him to leave or proceed on leave, and when he returns, you can simply state that he does not have any work with you. However, if he has been engaged without proper documents and statutory coverage like PF and ESI, please settle the matter amicably by paying some compensation, for example, one month's wages, and part ways with him.

Regards,
Madhu.T.K

I am still wondering if a person has not been engaged for 240 days in the preceding year and there is no written proof with him except a gate entry, is he eligible for one month's notice pay? Obviously, I am going to pay him leave and bonus as per norms. I have included him in the coverage of PF. ESIC is not applicable. If he complains before the honorable court, can we be at fault?

Legal Implications of Non-Engagement

Also, I notice that I informed him to come down to take his dues at our head office in Bharuch since December 12, '12, but initially, he denied, and afterwards, he agreed, but he still hasn't come for the same. Could there be any legal intention behind his non-appearance?

I want to close this chapter as of now, so kindly reply to me a little faster.

Thanking you,

Regards,
Balvant

Mr. Madhu T.K. has directed accurately. If you have to close this issue, you need to pay him a certain amount of compensation as he was covered under PF benefits, which actually means he is working for you. He will later have the right to claim. Therefore, the finest option is if he has no written consent or supportive documents. You can soothe him by doing the above required for your company's benefit.

Regards,
[Name Removed For Privacy Reasons]

As you have been sufficiently advised by the worthy member above, I would like to add one more thing. He is not eligible for one month's notice pay as the same is not a statutory right. However, you need to pay him the bonus and the amount of leaves he has not availed but was entitled to. It is also not advisable to keep the money with you for long. You should probably pay him by cheque and send it to the address available with you.

Enclose a letter with it explaining the duration of his engagement and the last day of his work as a casual worker, along with advice to encash the cheque within 3 months from the date of issue. The letter should be in a language that is understood by the employee, as from your post, I can infer that he might be a blue-collar worker.

For any doubts or clarifications, please do revert.

Regards

In addition to the bonus and leave (unavailed) by the worker, you have to pay him 15 days' notice pay if his working days exceed 120. Furthermore, he is entitled to receive 1 day's pay as he has worked more than 60 days but has not yet reached 120 days.

Regards,
Basir Ahmed