How Would You Handle Trainee Terminations While Staying Legally Compliant in Retail?

Hi friends! Please suggest for the following case.

Suppose a garment retail shop like Pantaloons, Big Bazaar, etc., opened a branch for retail business in New Delhi. To start the activities in New Delhi, it transferred some employees from other states. Then, it employed some fresh employees in New Delhi as trainees. After the completion of 6 months of training, some of the trainees were terminated on the grounds of unsatisfactory performance.

What steps would you take during the entire process to ensure that your company (a retailer of apparel) is protected under various laws?

Dear,

Safely follow the process under the Industrial Disputes Act for retrenchment. You will have to give them notice or notice pay for one month. If you perceive a legal problem, take specialist advice.

With Regards,

V. Sounder Rajan

VS Rajan Associates, Advocates & Notaries,

No. 27, 1st Floor, Singapore Plaza, No. 164, Linghi Chetty Street, Chennai - 600 001.

E-mail: rajanassociates@eth.net

Office: 044-42620864, 044-65874684,

Mobile: 98401 42164.

Though under the ID Act, 240 days of work in the previous year are required to refer such employees as employees. Therefore, termination of trainees after 6 months of service will not attract any complicated labor dispute. However, to be on the safer side, at the time of employment itself, an agreement to the effect has to be made that: "if your performance is found unsatisfactory, your service will be terminated without any notice." As there is a chance of such incidents getting exaggerated by those who strongly oppose the emergence of retail giants, care should be taken in dealing with such situations. Alternatively, as an organization with a network all over India, those whose performance has been found unsatisfactory shall be transferred to a remote location, following which the trainee (employee) will be compelled to leave by submitting his resignation.

Madhu.T.K

Dear Member,

The terms and conditions in an appointment order are crucial in determining the termination process. If you have a valid clause in your appointment terms, you can proceed accordingly.

Regards, Murugavel B.