Employee Termination in Indian BPO: What Are the Settlement Rights and Legal Steps?

Employee Termination and Settlement Queries

If an employee working in an Indian BPO company was terminated on grounds of indiscipline (wherein indiscipline means the person has misbehaved very badly with the superiors and co-workers - no illegal activities otherwise) and was subsequently given a termination letter for the same, is this employee entitled to any full and final settlement? If yes, then what is the employee eligible for and within what time should the settlement be?

If the company denies any settlement of FNF, then can the employee go to a court of law? If yes, then what is the normal course of action (in days, months, or years) in which the verdict can come? If the verdict comes in favor of the employee, what amount can the compensation be that the company is liable to pay?

Kindly help me in this regard. If possible, please give me references to cases where the verdict that you mention was quoted. You can also email me at [Email Removed For Privacy Reasons].

Regards

Handling Employee Termination and Legal Proceedings

If an employee has misbehaved with superiors, the company must conduct a domestic inquiry and award suitable punishment. Termination without conducting the domestic inquiry is illegal. This verdict has been given by various high courts numerous times.

If the employee is terminated, he/she is eligible to receive remuneration until his/her last working day under the provisions of the Shops and Establishment Act as well as the Payment of Wages Act.

If the employee feels that the termination of employment is unfair, the aggrieved employee may approach the labor officer of the area where his/her company is located. The employee has to provide evidence of his/her employment and submit an application regarding his/her grievance. Depending on the merits of the case, the Labor Officer may issue a notice to the company to present their viewpoint. The Labor Officer may give a verdict on either side. However, it is not binding on the company.

If the verdict favors the employee and the company does not comply with it, the aggrieved employee is free to approach the labor court.

This is how labor issues are handled.

Thanks,

Dinesh Divekar