Dismissal Orders and Model Standing Orders: Can Departments Legally Sign Off?

Can the department sign the Dismissal Order of its workers as per the disciplinary proceedings of the Model Standing Orders?

As per my knowledge, only the person who has the authority to sign any disciplinary correspondence or dismissal order is also the one authorized to sign joining formalities such as offer letters, appointment letters, or confirmation letters.

Only the authority who has signed the appointment order can be the Director of the factory.

Dear Mr. Pawar,

The dismissal order should be signed by the appointing authority only, subject to the findings of the enquiry officer after the enquiry proceedings are over. Before issuing the dismissal order, a Show Cause Notice should be served on the delinquent, asking for his explanation and showing cause as to why his services should not be dismissed from the rolls of the Company. Before punishing anybody, an opportunity should be given in principle of natural justice.

Adoni Suguresh
Labour Laws Consultant

Issuing a Dismissal Order

A dismissal order can be issued to an employee either by the appointing authority or the authority delegated with the power of dismissing an employee. A dismissal is a punishment, so in many cases, the authority empowered to sign the dismissal order should clearly write the reasons incorporated in the final orders. He/she is being dismissed from the services with the benefits admissible and recoverables as recommended by the authority who conducted the proceedings. Based on the final order, the authority can execute the dismissal orders.

Before issuing or dismissing an employee, he/she should be given in writing the motive of dismissal and any representation recorded for further review. However, if the dismissal order requires review by the higher official, such matters should be immediately referred for further action. Thus, before issuing dismissal from services, the formalities should be adhered to, as failure to do so may result in inadequacy by the delinquent for remaining in the service.

Best of luck...

Dear Govind,

Mr. Gopinath has provided a correct elaboration. Not only the appointment authority but also any person authorized or delegated powers by the Board of Directors' meeting should be recorded correctly by the Company Secretary.

Regards

Authority for Signing Dismissal Orders

The dismissal order should be signed only by the appointing authority. Normally, this will be done only by the Personnel/Administration Department, who are empowered by the Management. Although departmental heads are empowered or delegated certain powers, they are not authorized to appoint an employee. The appointing authority is typically the Personnel Officer/Administration Manager or, in their absence, the owner/Director, or at most, the Unit Head. Departmental heads' powers are limited; they can issue charge sheets and are authorized to take disciplinary action, but they are not involved in the day-to-day administration of the establishment.

Regards,
Adoni Suguresh
Labour Laws Consultant

Authority in Issuing Dismissal Orders

An appointing authority is delegated with the power of appointment. If the same authority is responsible for issuing a dismissal order, there certainly will be a gap. Hence, whenever there is a dismissal, and the dismissal is a punishment, the authorized or delegated power should be used for such issuance of the order. If the same authority who appoints a person is authorized to issue the dismissal, there is no other way but for the order to be executed. These are positions carrying power, and we must not violate the sanctity of the authorities.

Let us take a simple example: if he/she is appointed to a cadre, say Group-C (according to the post), with continuance of service, and is then promoted to Group-B non-gazetted official, the appointing authority differs in the span. He/she is not being appointed anew but has received a promotion in service. On finding prima facie negligence in work, when the person is compelled to be dismissed, the authority, in fact, differs. The delegated authority can execute the order, not the appointing authority on the cadre entry as Group-C. In the private sector, the board of directors delegates the power, and this differs in the industry.

Best of luck...

A friend was working as a DGM in a public sector company. Recently, he received his balance salary/bonus (not as per the 2015 amendment, if any) and gratuity without a domestic inquiry for his long-term (9 months) absence or not reporting to duty due to a threat to his life by the reporting officer in Assam. No chargesheet, suspension, termination, or service certificate letter has been issued. The employee has a clear record over 8 years of service. As per the employee's designation, the appointment/confirmation letter was signed by the MD of the PSU. Another MD is still in the role. However, all the correspondence and dues settlement letters are now signed by the GM-HRD. Is this valid in a court of law? Please reply as a friend in deep depression. I am trying to help his family.

Regards

In fact, the CSO has to contain details of the Appointing Authority, Disciplinary Authority for minor punishment, Disciplinary Authority for major punishments, and the Appellate Authority for each class of employees, as per the delegated authority of the Executives of the organization. If that is not included, the CSO can be treated as incomplete. Transparency is a must in such types of establishment matters.

Sir, if I understood correctly, the Company Secretary's office will have a delegation of power and authorities approved by the board. GM-HRD communications and signatures are legally valid; however, the delegation details are not disclosed by the company. Could you please advise on how to take the case to court without knowing the delegation of powers?

Thank you.

Delegations are distinct for each class of executives, not common for all on all the issues. The Company Secretary is usually delegated with legal and secretarial powers, plus adequate financial powers for his own department.

Delegation for administrative and disciplinary powers is open for all to note; it cannot be kept as a secret weapon by any department. You may check with the HR department of your organization.