Dear Maneeshishri,
What is the background of the case? Why you lost confidence on that employee? Do you have sufficient evidence for the "misconduct" by that employee?
Depending on the gravity of misconduct, you can initiate appropriate disciplinary action. Mere saying that you lost confidence on certain employee and to issue some letter does not go well.
Yes, you may say that Maruti Suzuki Motors Limited (MSML) had terminated hundreds of employees on the grounds of "loss of confidence". However, their case was different. Certain section of employees had vandalised the company property and one senior management personnel was killed also. The employees who were terminated were on duty that time and they were mute spectators to the vandalism and hooliganism of few employees.
We do not know what has happened in your case. However, while dealing with misconduct it is important to follow
progressive discipline. Have you done that?
Ok...
Dinesh V Divekar