Hi,
I am addressing only the legal aspect here.
Nature of Contract:
I think from your description, the said employee were in direct contract with your company. Had she been any employee given for assignment from another contractor. The contract would have been with that other party. Now the most important part of a contract is "Privity of Contract". Here you have a direct contract with the said employee, so you she can claim privity. See this for more information
Things To Remember While Drafting A Valid Employment Contract
Absenteeism and Termination of Employment:
The Industrial Standing Order states
Holidays and Leaves:
A person employed in a shop or an establishment shall be entitled—
1. For every completed year of continuous service, to privilege leave on full pay for fourteen days
2. In every year, to sick leave on half pay for fourteen days on medical certificate obtained from a medical practitioner.
3. In every year, to casual leave on full pay for ten days
4. In the case of woman, to maternity leave in accordance with such rules as may be prescribed.
"NOW TO COUNT ABSENTEEISM YOU NEED TO DEDUCT ALL LEAVES"
Termination of employment:
(1) For terminating employment of permanent workmen, notice in writing shall be given either by the employer or the workmen - one month’s notice in the case of monthly-rated workmen and two weeks’ notice in the case of other workmen: one month’s or two week’s pay, as the case may be, may be paid in lieu of notice.
(2) No temporary workman whether monthly-rated, weekly-rated or piece-rated and no probationer or badli shall be entitled to any notice or pay in lieu thereof if his services are terminated ,but the services of a temporary workman shall not be terminated as a punishment unless he has been given an opportunity of explaining the charges of misconduct alleged against him in the manner prescribed.
(3) Where the employment of any workmen is terminated, the wages earned by him and other dues, if any, shall be paid before the expiry of the second working day from the day on which his employment is terminated. SEE FULL HERE
Drafting of HR policies in line of Industrial Dispute Standing Order
Conclusion:
Determine whether the employee was a Permanent, Temporary etc. For due salary you need take into account leaves or holidays according to the law. Absenteeism is a breach. Now in your case it is reasonable and can be called a breach. Read your states Shops and Establishment act. Generally there is a point on termination due to absenteeism.