Dismissal Under POSH Act: What Happens to Notice Period and Gratuity?

Dear Experts,

The appointment letter of a Manager states that service can be terminated from either side by giving two months' notice. Now, this Manager has been dismissed after being found guilty under the POSH Act. His gratuity has also been forfeited.

What is the legal provision regarding his notice period in this case? Any case law?

Regards,

This is not termination but dismissal after conducting an inquiry. Therefore, no notice period clause will apply. Your act of terminating or dismissing and forfeiting gratuity (Section 4(6)(b) of the Payment of Gratuity Act) is lawful. Notice period applies only when his employment contract is terminated for reasons other than misconduct.

Hi, The act of your manager falls under the definition of "moral turpitude"; hence, no notice period is required. Punishment can be effected forthwith. You can also forfeit his gratuity payment.

Do you have any policy, document, or contract for termination under the disciplinary process/POSH? If yes, then the same shall be followed.

Please note that there is a fair inquiry process with evidence, etc.

Dear Friend,

The terms and conditions in an appointment letter are limited to the point where termination is at the discretion of either party. In the current scenario, the termination occurred due to misconduct under the POSH Act. The forfeiture of gratuity is justified. Therefore, the clause regarding the notice period does not apply.