Employee illness - not fit to do work in current condition we should continue his service or retrench?

Pls advise me that a workmen is absent last 3 month due to his illness now he is not fit to do work in this condition we should continue his service or retrench?

If he is covered under ESI Scheme, write a letter to the Medical Officer attached, to ESIC, to constitute a board and decide / request about his fitness for the nature of job. If not covered under ESI Act, you may request the Medical Officer of the Government General Hospital, and request him to constitute a board for his fitness certificate. Based on the medical report you can initiate action on the sick workmen.

Dear Rana, what is the nature of illness? It is admitted that,when Employee is Sick, he can not attend his work.What is the nature of Work, Designation?
As an Employer you should follow healthy Management Practice.Instead of resorting to Retrenchment, explore the possibility of giving him Best medical facility & recoup from his illness

Dear Rana,
This is in addition to what previous two members have said. If the workman has not been reporting for his duties for the last three months then did someone from HR his home or hospital?
What is the diagnosis? Depending on the diagnosis take decision on his termination. If his illness is severe yet if the disease could be cured then you may keep him on the rolls of company. As he will be absent you don't have to pay any salary. Therefore, there is no financial liability for keeping on the rolls of the company.
I recommend you keeping him on the rolls of the company because his family could be facing hardship and when he becomes to fit do his duties, he would need employment. At that time, he can join the duties easily. I am recommending this out of humanitarian approach. However, before taking this decision, obtain approval from the top management for keeping him on the rolls. If you are from HR then it should not be just your decision.
Thanks,
Dinesh Divekar