Absconding Under the Shops and Establishments Act: When Can You Terminate an Employee?

Absconding and Termination Under the Shops and Establishments Act

Kindly guide me—if an employee directly stops coming to work and does not give any intimation or answer the calls made by the company, in such cases, after what duration of time can the employee be considered absconding and terminated from the system? My establishment comes under the Shops and Establishments Act.

Regards,
Sandeep Yadav

If the Standing Orders Act applies to your establishment, then you need to conduct a domestic enquiry. Otherwise, you may act as per your wish with reference to the appointment letter clause.

In case you do not have standing orders as stated by Mr. Prashant (and I doubt your appointment letter has any such clause), then you need to send a letter to the registered address asking him to rejoin within 7 days. If you do not get a letter, send a termination notice.

If there is no appointment letter or standing order, you must adhere to the model standing orders. As already communicated, send a letter instructing them to report for duty. If the individual does not join, conduct an internal inquiry, provide them with a chance to prove their innocence, and if found guilty, terminate their employment and settle any outstanding dues.

As mentioned above, you should send three letters by REGISTERED POST to the registered address of the employee. The tone of the first two letters should be pleasant, while the final letter can be curt. In the final letter, clearly mention that due to non-response, the employee is being removed from the company's roster.

Hope this helps.

Regards,

You have not mentioned your query in detail. We always insist that readers or advice seekers provide genuine facts so that experts can give their opinions.

Employee Status and Documentation

Has your employee received an appointment letter from your company? What is the tenure he has served with the company? Is he a probationer or a confirmed employee? If there is no offer of appointment in writing, you can terminate him by issuing a show cause notice. If he is a confirmed employee, initiate a domestic inquiry alleging habitual absence without leave and neglect of work. Issue him a charge sheet as per your company's standing order. If no Standing Order exists, you can follow the Model Standing Order. Ensure you have sufficient documentary evidence during the inquiry process to prove his misconduct, and conduct the inquiry based on Natural Justice.

Regards,
Adoni Suguresh

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

As mentioned by Ryan, these two show-cause notices should be sent via registered AD, inquiring about the reasons for absconding from duties without prior intimation to the management. This should be done within a 7-day gap from the date of the LOP. The final letter, potentially a termination letter with immediate effect, would refer to the previous unanswered letters.

Regards,
Janardan