Terminated for Misconduct in India: Do Employers Still Owe Payment for Days Worked?

If an employee gets terminated in a BPO in India on the grounds of misconduct and disciplinary issues, does the employer have to pay the dues to the employee for the days worked, or does the employer have the right not to pay the employee at all?

Termination of services of an employee can be only with prospective effect but not with retrospective effect (backdate). So, an employee is entitled to wages for the period he worked prior to termination. However, the employer can recover any dues payable by the employee from the wages thus payable.

B. Saikumar
HR & Labour Relations Adviser

The employer is liable for all the dues to the employee for the days the employee worked. In the event of non-payment by the employer, legal consequences may be faced.

Wages/Salary Payment Guidelines

Wages/Salary earned is payable for days worked, in full minus "Authorized Deduction" and the amount of fine for causing damage/loss to property of the establishment, which is worked out on the basis of obsolescence/natural diminishing value for which the account has a technical term.

Withholding Wages/Salary

Withholding wages/salary, other than the recovery of a fine by way of disciplinary action, is strictly forbidden. For an act of proven misconduct, the punishment should be proportionate and in accordance with service rules or certified standing orders, not arbitrary.

Regards, Kritarth Team of Management Caretakers
23.2.19