Can a Public Sector Employee Be Terminated Without Proceedings? Seeking Guidance

My friend has been working in a Central public sector undertaking for the last 25 years. He joined the organization as a supervisor and rose to the position of manager through promotions. His last promotion was in 2008. However, in 2014, the management terminated his services, giving three months' notice on the excuse of non-performance.

Termination Without Proceedings

How can a confirmed employee of a public sector company be terminated by giving three months' notice without any proceedings under the CDA rules of the company? Please guide.

Employee Termination and Performance Appraisal

It is true that no employee can be dismissed on the grounds of poor performance without being given an opportunity to be heard or without following a system of transparent performance appraisal. By transparent, I mean an appraisal conducted with the knowledge of the appraisee, not something decided in a discussion among a few managers.

It is surprising that a PSU management did this, perhaps after receiving concurrence from the Legal department and on the grounds that, in the case of a manager who is not under the protective cover of the Industrial Disputes Act, no formal procedure is required to be followed. However, while discharging, the management should have adhered to at least the basic principles of natural justice.

Since the reasons shown, i.e., poor performance, will cause stigma, the employee, manager, or whoever it may be, will be justified if they file a case against the organization. To reiterate, since he has been working as a manager, he will not receive the protection of the ID Act.

Regards,
Madhu.T.K

I believe your friend should proceed legally and challenge the decision taken by the PSU. Regardless of whether he was an employee of a PSU or from a private sector, there should have been an initial inquiry, notice, or circular issued to him regarding his poor performance before direct termination. PSU also has specific guidelines in this regard, which he should have been aware of given his long tenure in the sector.

It seems like there might be more details to this case that you haven't shared with us, so I recommend speaking to your friend again to gather all the necessary information or have him post his query with comprehensive details.

Under the PSU personnel policies, specifically under the clause of "Conduct, Discipline & Appeal Rules," he has the option to file an appeal and challenge the decision if he wishes to take that route. However, for this, he should seek advice from a legal consultant or lawyer.

If you have any further questions or need additional assistance, feel free to ask.

I agree with the above opinion and suggestions. This is a good case for taking up the cause, and the ex-employee deserves to be dealt with in a fair manner. It is not necessary to hire a lawyer (though desirable); the members here are competent enough to help the individual if more details and information are provided.

Warm regards.

I strongly feel that there must be some other reasons known to your friend and the PSU management. Otherwise, no company, whether PSU or private, takes this type of action with a manager who has been working with them for 25 years.

I appreciate and thank all of you for your suggestions. However, I can assure you that my friend has not hidden anything in this regard. It is also very surprising to him and to me how a PSU management can do such a thing to an employee who has been working for the last 25 years.

Further, there are CDA rules of the company which I have also read, the definition of which includes 'loss of performance,' and for any such allegations, including any other allegations whatsoever, the termination can only happen after a detailed laid-down procedure and an inquiry is held by a committee in this regard. Termination can only happen after a detailed show cause, chargesheet, inquiry by the committee, etc.

If the CMD of the organization does not follow such rules and considers himself an arbitrator posing as 'proprietor of the concern' and converting a PSU to a proprietorship concern, what can a poor employee do except to plead to the concerned ministry and to the court? The act done by the CMD of the organization is totally illegal.

I have now personally read the case and am convinced that natural justice has been denied to him, and such an act is ultra vires to Article 14 of the constitution.