Appointment Letter Lacks Termination Clause: How to Properly Issue a One-Month Notice?

An appointment letter was issued to the employee without any clause regarding service termination. In this case, what would be the procedure to issue a service termination notice for one month? Please advise.

Termination Procedure with Notice Period

First, issue the rule providing for termination with a notice period and circulate it among all employees. Thereafter, take action. If there is a resignation clause containing the required notice period in the appointment, use the same for termination simpliciter.

Please check the applicability of the standing order in your industry. Since no termination clause is mentioned in the employment contract, you have to abide by the terms and conditions mentioned in the standing order if applicable.

Importance of Separation Clause in Appointment Letters

An appointment letter, without any clause of separation, is incomplete. Any employment contract shall and must include a clause of separation, mentioning the end of service by termination or resignation.

Issuing an Addendum for Separation Clause

Please issue an addendum (referencing the appointment letter) to all employees who received an appointment letter without the separation clause. This addendum should explicitly state the clause of separation (resignation or termination) and obtain their acknowledgment on the copy, which should be kept on file.

Resolving the Issue

Regarding your query, you can resolve the issue by adhering to the rules and procedures outlined in the certified Standing Orders of the company.

I believe your current query pertains to terminating the employee now rather than addressing amendments to the appointment letter or service conditions in this regard.

In such a scenario, if the employee is a workman who has completed 240 days of service in the establishment, the proposed termination would constitute retrenchment under Section 2(oo) of the ID Act, 1947. Therefore, you should adhere to the procedure outlined in Section 25-F of the Act.

The termination with notice (1 to 3 months) can be done with the cessation of the post/position, but it is uncertain how it fits into your establishment's current condition. You need to amend all appointment letters to include a separation clause to prevent problems on a future date.

If the employee is covered under the definition of "workman" under the Industrial Disputes Act 1947, then his termination can be effected only in accordance with the Act 1947 and other conditions of service.

Regards, S. K. Mittal
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Dear Shobhit, the concerned employee is under the Senior Officer cadre. In this situation, what would be a reasonable course of action to issue him a service termination notice with one month's notice? Kindly suggest.

Regards, Rakesh Dubey

Termination without a Valid Ground

Termination without a valid ground and in the absence of a notice period clause in the appointment letter is viewed unfavorably in the eyes of the law.

Review Applicable Clauses

You should review the clauses applicable to other employees in a similar category.

Contact and Advise the Employee

Contact the concerned employee and inform them that the management is considering termination. It would be in their best interest to resign instead of being terminated. Upon resignation, the management will provide a proper relieving letter and an additional month's pay.