How Should a Company Handle Payroll for Long-term Absent Employees Due to Accidents?

Hi All, An employee working in a pharma company encountered an accident 7 to 8 months ago outside the office premises. Hence, he could not work and is still under bed rest. The organization has even helped the employee by paying a certain amount of money for expenses towards the employee's health. Now, the organization wants to remove the employee from its payroll and appoint a replacement. In this regard, I request you all to provide me with the prescribed suggestions that are legally enforceable. Looking forward to your valuable suggestions.

Termination of Employment Due to Extended Absence

If an employee is covered under the definition of a workman as defined under Section 2 of the Industrial Disputes Act, then termination due to absence on account of 7 or 8 months of bed rest does not appear to be reasonable and will be set aside by the labor court if so challenged. Even if the employee is not a workman, since he is working in Karnataka, he will be governed by the Karnataka Shops and Commercial Establishments Act, 1961. Under Section 39 thereof, termination can be for a reasonable cause only. You may challenge such termination before the appellate authority laid down under the Act.

Thanks,

Sushil

Thank you, Sushil, for your valuable opinion. Based on the employer's perspective, they can seek resignation from the employee.