I agree with the indirect observation of our friend Mr.Madhu that the attempt of the poster to dispense with the services of the permanent employee by giving one month's notice as per the particular clause of termination of employment in the certified Standing Orders amounts to "discharge simpliciter". No doubt that discharge simpliciter, per se, is not punitive in character and in fact, has no adverse consequences as the employee would be entitled to all service benefits. Even then, I am quite unable to lend support to the proposed termination by giving one month's notice as per the clause of the Standing Orders in view of the fact that a catena of cases decided by the Supreme Court categorically explain that discharging an employee simply by giving notice or paying in lieu of notice, though as per the terms of the contract of employment, is unconstitutional as it violates Art.14 of the constitution which guarantees " equality before Law " to every citizen.
Of course, the provision in the contract of employment for unilateral termination of employment by the employer or employee by giving a notice of a certain period may be valid for employment could never be an endless contract or an everlasting bonded slavery.
However, certain aspects of employment like the classification of employees such as temporary, permanent etc., coupled with the Principles of Natural Justice would act as a deterrent when an employer decides to abruptly use such an enabling clause to deprive the job of a permanent employee without any reason. If it is allowed, it will end up in unquestionable hire and fire according to the whims and fancies of the employer who is certainly a more powerful party to the contract of employment. In discharge simpliciter, the employer has got unguided and unrestricted power to terminate the services of the employee by giving notice or granting pay in lieu thereof, without giving any opportunity of hearing to the employee. That's why the Supreme Court opined in S.S.Mulley vs JRD Tata and others [ 1979(2)SLR 438 ] that exercise of such a power by the employer violates the principle of natural justice and is against the spirit of Art.14 of the Constitution. In Central Inland Water Transport Corporation Ltd case [ 1986(2)LLN 382 ], the Supreme Court held such a provision in the service rules is against public policy as per sec.23 of the Indian Contract Act,1872.