Insights on Instant Termination in the Construction Industry and Legal Compliance

Instant termination lawful? I am working as an admin officer on a construction project. Sometimes, I have to terminate workers instantly for negligence of duty, which might hamper our work schedule. We have committed to our respective client for completion in due time.

Dear Mostafa,

Immediate reply to the query would be yes, it is unlawful to terminate any worker on the spot. If the misconduct of the employee is serious, then the employer should order a domestic enquiry. If the misconduct is proved, then the worker may be terminated. Nevertheless, there are practical difficulties in implementation. If this legal process is followed in letter and spirit, then at the construction site, you need to have a dedicated room for conducting the enquiries. In the Indian context, it is beyond anyone's imagination.

The downside of the instant delivery of justice is that an innocent person may not get a chance to prove his point. It vitiates the work atmosphere. But then construction companies have to handle far larger issues and hardly have time to consider humans as a valuable asset of the business.

As a via media, you may give a show cause notice to the worker and ask for an explanation. If the explanation is not satisfactory, you may terminate the employee. By doing this, you will have at least some documentation at hand.

By the way, why was there a need to ask about the legality of the termination of construction workers? As such, they are in short supply, and even if you remove them, they can find jobs elsewhere. Thinking that such persons could raise an industrial dispute stretches one's imagination to an unreasonable level.

Last but not least, why bother about workers when your industry is known for on-the-spot removal of managers as well? Though I am making a sweeping statement, in the construction sector, bulldozers are used for construction activities as much as for bulldozing people. Therefore, be as it may and move on!

Thanks,

Dinesh Divekar

Hello Mostafarabbani,

Like Dinesh & Nathrao suggested, there's nothing like 'Instant' Anything, be it termination or anything else... except MAYBE "Instant Coffee".

Not sure what you mean by saying 'I had to terminate worker instantly for negligence of duty...'. Who's pressurizing you to terminate—management? You always have an option to think differently & act differently.

Like Dinesh mentioned, use other means of acting against such employees as the first-level step. Quite often, the very fear/threat of the possibility of drastic action helps in controlling such employees.

Having said this, I also understand that there COULD be absolutely incorrigible workers... what you do as a routine step MAY be applicable to them. But DON'T use it as a general practice.

Rgds,
TS

Instant termination does not improve any company's goodwill. There is no law against it. Please have a talk with your management, HR, and also, if you don't make any big blunders on your work site, then a show-cause notice should be served by the company, giving ample time to reply. Without knowing both sides of the allegation, one-sided action is not legal in Indian Labour Law.

Friend,

Sorry to see the sad state of affairs in this "Unorganized sector of the modern world". It is regrettable to note that this construction/real estate sector will never be organized because the investors and leaders would prefer to operate in grey areas. There is so much of an undercurrent to manage as most of them operate with tons of hard cash, and the regrettable part is the regulatory bodies turn a blind eye to it.

Coming back to instant termination in this segment is a very common phenomenon because they also believe the nexus with antisocial elements is so very evident that they can be used to threaten such innocent victims of instant terminations. By any length of professional imagination, we all as HR professionals should enlighten and educate the decision-makers that it is highly illegal, against all principles of natural justice, and no matter how big the misconduct is, you can at most suspend pending inquiry. Thus, you cannot terminate instantly any staff who is deemed regular without due process of the law. Well, I agree with the points that Mr. Dinesh has made. I am sure you see the point "None can be punished without being heard."

Actually, you need a separate regulatory body to monitor these construction-related injustices and breakdown of the legal process, which are glaring in the day-to-day functioning of real estate cum construction companies. My suggestion is to keep flagging such draconian acts and persuade them to change their "hell let loose" attitude towards weaker sections of the talent pool.

Dear Mr. Mostafarabbani,

If some of the casual/temporary workers directly engaged misbehave or are negligent in their work, and if some workers engaged through contractors also indulge in a similar manner, you have to remove them in the interest of maintaining discipline and safety in the construction industry. Please be judicious and take the site officials and some senior workers into confidence when making decisions.

N. Nataraajhan
Sakthi Management Services
HP: +91 94835 17402
Email: natraj@sakthimanagement.com

Dear Mostaffa,

In India, the Industrial Disputes Act has a provision of "Discharge Simpliciter." However, the very action of termination, say Discharge Simpliciter, has not been in favor of companies like us. Please issue a show cause notice asking for an explanation within 24 hours. Afterward, explain all about the nature of misconduct in its sequences loudly in the termination letter, stating that the misconduct is so grave, clear, and evident that a domestic enquiry is not felt necessary to institute at this juncture.

Furthermore, mention that in case the workman raises an industrial dispute challenging the termination action for adjudication, a domestic enquiry before a judicial authority will be conducted for the satisfaction of the competent court/tribunal by the management. Following this procedure, terminate him, which should be a plea in your written statement/reply if he decides to contest his termination.

Regards,

RDS Yadav
Labour Law Adviser
Director - Future Institute of Management and Technology

I appreciate Mr. Nathrao's reply but have a doubt when he says that Maggie noodles will find it difficult to make a comeback. I myself never eat noodles of any make as I don't like that kind of food. But it being a craze amongst the younger generation, I decided to hear their views. I was very surprised to find that many of them thought this ban as some kind of machination of our inefficient/corrupt bureaucracy. They almost unanimously agree to go back to their favorite food once the ban is lifted. And given the enormous financial power the maker of the brand enjoys, I think Maggie's future is not that bleak.

Dear Saibhakta,

The issue at hand pertains to instant dismissals. While such actions may seem dramatic and thunderous, they can have adverse effects on the employee-employer relationship. Maintaining a sense of fairness is crucial when dealing with employees.

Regarding my perspective on Maggi noodles, once trust is lost, it becomes exceedingly challenging to regain people's confidence. New products will inevitably emerge, and consumer preferences will evolve. Cadbury faced a similar situation in 2003 when a worm contamination scandal occurred, prompting them to enlist Bachan to restore customer trust. However, the repercussions of the worm incident significantly impacted the company. Maggi is now confronted with a daunting challenge ahead.

Thank you.