Can We Legally Terminate an Employee for Attitude and Conduct Issues in a BPO?

Hi, can anyone help me with this! I am working as an HR Executive in a BPO company. We would like to terminate an employee based on their attitude and conduct. Is this possible? If I proceed with this, could I face any legal issues? The employee has been working in the company for more than a year.

Termination Due to Attitude and Misconduct

Termination due to attitude and misconduct is a very subjective matter. However, if you are convinced that termination is necessary, please ensure you have followed the warning process:

1. Was a verbal warning given and recorded?
2. Was a written warning given, and was the employee asked to clarify their position?
3. Was the final warning given, and was the employee asked to clarify their position?

Termination simply because one feels that the employee has an attitude is not justifiable. You must follow the proper process. Nowadays, an employee from the BPO sector may not pursue legal action, but if they do and you lack evidence of your process, you could face significant challenges. Consider counseling, and if that does not work, then proceed with the termination process. You cannot terminate someone abruptly just because you feel they have an attitude.

Regards,
Ashutosh Thakre

Thank you very much, Ashutosh Thakre, for your great reply. Termination is not my decision; it's a management decision. In my company, nearly four to five employees were terminated like that. I raised this to get clarification on that. Thank you very much.

It is easy to recruit any employee, but it is difficult to terminate their services. Besides what is mentioned in the appointment letter and terms and conditions of such employment, the law requires that while terminating the services of any employee, the principles of natural justice must be followed.

Principles of Natural Justice

I think, as an HR professional, you must have thorough knowledge of the Principles of Natural Justice. If the terminated employee appeals in the honorable Labour Court that the principles of natural justice were not followed, the said employee is bound to be reinstated with back wages.

HR Department's Role in Employee Termination

Officers/employees working in the HR department of a unit are also employees subject to the control of the management. However, if you feel that any decision of the management is not in accordance with established rules or terms and conditions of employment, you are well within your jurisdiction, in my opinion, to suggest to the management the right course of action in any given situation. If, however, the management proceeds further, ignoring your opinion, I hope they cannot blame you in the long run if there is a court case.

The terminated employee will file the case or claim in the appropriate court against the "principal employer" and not against any HR personnel by name. However, your views "to come out" as soon as possible will be even better.

If an employee is not working sincerely and hard for the benefit of the company, then you have to prove their inability in discharging their duties. You mentioned conduct or misbehavior. What about their output towards their duties and responsibilities? For every problem, there is a solution in the Industrial Disputes Act, 1947.

Steps to Address Employee Misconduct

In this case, I suggest initiating a domestic inquiry into the alleged misconduct. If you have your own Certified Standing Orders of the Company, you can proceed according to those. If not, please follow the Model Standing Orders. First, you can take a complaint against the employee by their superiors or their Head of Department (HOD). Then, issue a Show Cause notice asking for an explanation of why disciplinary action should not be taken against the alleged misconduct. The next step is to issue a charge sheet based on the complaint. There are several clauses in the Model Standing Order that will constitute misconduct, and you should ask the employee to submit their explanation letter in writing within 48 hours of receiving the charge sheet. Upon receipt of their explanation, you can order a domestic inquiry by appointing an Inquiry Officer from among your senior executives, except the appointing authority. Conduct the inquiry fairly, adhering to the principle of natural justice. Both parties should be given sufficient opportunities, including cross-examinations of the witnesses. Upon receipt of findings from the Inquiry Officer, you can decide on the punishment.

Before terminating the employee, you should give them a chance to submit their explanation in writing against the proposed punishment.

If you follow these procedures, even if the employee approaches the Labour department or Labour court, they will not succeed. However, before punishing them, you must follow the procedures under Misconduct.

Regards,
Adoni Suguresh

Sr. Executive (Pers, Admin & Ind. Rels) Rts
Labour Laws Consultant

Understanding Termination for Misconduct

Bad attitude is not a valid reason and cannot be justified in court. Misconduct is a valid reason. However, the employee needs to be given a memo/notice, and their explanation needs to be heard. If the management is not convinced, only then can he/she be terminated.

An important point to note is that the nature of misconduct also needs to be taken into account. Coming late to the office is misconduct, and taking frequent leave without approval is misconduct, but an employee cannot be terminated for these. They can only be served a warning in the first place.

On the other hand, harassment, misappropriation of cash, company assets, misrepresenting the company with clients, vendors, and outsiders, creating a ruckus in the office premises, and using abusive language against employers, bosses, and peers inside the office are serious charges and are sufficient grounds for termination. However, these charges need to be proved, or the company must have very strong evidence.

Approach for Handling Employee Termination

I think the most appropriate way to handle this situation is to give a warning. You should provide a warning first, then a second warning, and finally terminate him on the third offense. A paper, letter, or perhaps an online message will suffice.