Can We Let Go of a Long-Time Employee Without Cause or Extra Compensation?

Is there any provision to send a senior person from the company who has been working for almost 8 years without any proper reason or information? Or do we need to provide some compensation apart from PF and Gratuity?

Please explain a few more details, like in what capacity you are asking this query and what type of business your company is in. Other details are also required, such as the designation of the person and why you would like to "send" this person. When you say "send," do you mean "remove"? Has he committed any misconduct? If yes, what was the gravity of the misconduct? Have you conducted any inquiry, and so on?

"Sending" a person out "without proper information/reason" is easy for an organization. Management can wield enormous power that is at its disposal. However, what management does not see is the devastating effect it may have on the morale of the people working in the company. Removal without sufficient reasons is not taken lightly by the staff. Especially when it involves a senior person, it could foster attrition in your company. Have you conducted a risk assessment of this factor?

Unless the employee is involved in grave misconduct, it is better to pay as per the terms mentioned in the employee's appointment letter. PF and gratuity are his statutory claims. You are not "giving" them. If you start paying something above the terms of employment, it may set a new precedent. In case a similar situation arises before management, they may have to pay extra remuneration. Therefore, make the decision judiciously.

Regards,
Dinesh V Divekar

In continuation of what Dinesh said, I would like to add that depriving an employee of their job in breach of the contract of employment is not only unethical but also illegal, irrespective of their employment status. I remember reading a judgment some 15 years ago relating to the issue of the removal of a personnel manager employed in a public sector undertaking on a very vague ground of inefficiency, citing a particular clause of its service rules. The High Court struck down the particular rule as opposed to Public Policy. If I remember correctly, the Court further observed that at the age of 45, a dismissed personnel manager would not be able to get re-employment in a good company like the respondent. So, try to dispassionately weigh the various options suggested by Dinesh and take an appropriate decision beneficial to both the company and the individual.

Regards.

My knowledge about the IT industry and its work culture is very skin-deep. However, from my own observations and interactions with youngsters known to me, I find that although some individuals may be academically half-baked, they quickly acquire the skills required for the BPO industry through hard work and commitment. This allows them to move up easily in the organizational ladder. Conversely, some people get stuck in the middle of their career graph, often due to a saturated mindset, and become deadwood.

The Role of HR in Employee Development

Here arises the need for HR, which I firmly believe should view such cases from a psychological perspective and adopt a proactive approach rather than weighing the options of getting rid of them as mere deadwood. For example, the efficiency of heavy vehicle drivers gradually diminishes with age. That's why the State Transport Corporations in Tamil Nadu implement the policy of promoting the senior-most drivers as Driving Instructors for new recruits. This is beneficial for both the employer and the employee as it enhances redeployment and intensifies the sense of belonging.

Employment as a Source of Livelihood

In the narrowest but inevitable sense, employment is a source of livelihood. If it is at stake, it will certainly have an adverse impact on the morale of the employees. Performance-related issues always demand a cautious and calculated approach since an exhausted employee cannot be equated with mere garbage. Therefore, it is better to motivate employees to rise to the standards of performance expected of them through proper counseling, as no one can circumvent the natural process of aging and the problems associated with it.

Regards.

Yes, but he can't seek redressal under the Industrial Disputes Act because he is not classified as a workman.