Seeking Clarity on Termination Procedures for Temporary and Probationary Employees: What Are the Legal Steps?

Clarification Needed on Employee Termination Procedures

I need some clarification for my queries below:

• **Termination of Temporary or Probationary Employees:**
A temporary or probationary employee involved in misconduct as per the company's approved standard operating procedure—how can we terminate him? What is the process to do the same? What does natural justice say?

• **Notice Pay for Probationary Employees:**
In his appointment order, the company promised to pay 3 months' notice pay or provide a 3-month notice period if the employee is terminated under various circumstances. Is this applicable for probationary employees? (The appointment order does not specify that probationary or temporary employees are not eligible.)

• **Inquiry Requirement Before Termination:**
Can a temporary/probationary employee (non-tech/office staff - managerial cadre) be terminated without conducting an inquiry, or should it be done after issuing a charge memo? Is this possible?

• **Eligibility for Charge Memo:**
Are office staff or managerial cadre personnel eligible to receive a charge memo?

• **Issuing Charge Memo vs. Show-Cause Notice:**
Can the employer issue a charge memo directly before issuing a show-cause notice (SCN)? What is the difference between an SCN and a charge memo/sheet? In what kind of cases can we issue a charge memo or an SCN?

Seniors/Experts, please share what our laws or industrial procedures state in such cases.

Regards,
Sakthi

If the services of an employee are to be terminated on the grounds of misconduct, the status of his employment, i.e., whether he is temporary, on probation, or permanent, is irrelevant. He should be served with a charge memo stating the charges of misconduct with reference to the relevant standing order clauses and provided direction to offer his explanation within a specific timeframe. If there is no reply or if it is unsatisfactory, a domestic inquiry has to be conducted by appointing an inquiry officer for this purpose. All reasonable opportunities should be given to him to defend himself against the charges. After the receipt of the report of the inquiry officer, you have to issue a show-cause notice mentioning the proposed punishment of termination and obtain the delinquent's explanation before passing the order of dismissal. This is essentially what the principles of natural justice entail.

Issuance of notice or payment in lieu of notice is not applicable in the case of termination on disciplinary grounds.

The procedure described above applies strictly to those who fall within the definition of 'workman' under Section 2(s) of the Industrial Disputes Act, 1947, irrespective of their designation or place of work. However, there is no harm in following the same procedure in the case of managerial cadre as it would be beneficial in potential future litigation.

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