Navigating Employee Termination: How to Handle Legal Concerns and Protect Your Organization

Dear All,

Questions on Termination and Legal Precautions

1. Can an organization terminate service without giving a reason for non-performance?

2. Can an employee go to the Labor Court when no show cause or notice is given to them for non-performance?

3. What precautions should be taken to avoid legal issues?

4. Is the ID Act applicable to managerial staff?

Thank you.

Hi, You should follow the principles of natural justice to avoid legal issues. Sufficient opportunity should be provided to the employee to defend his/her side, and a proper notice period should be given even if the reason for termination is non-performance.

A person working in a purely managerial and/or supervisory capacity does not fall within the definition of a workman under the ID Act.

Termination "without giving any reason" is inviting troubles.

Non-performance and follow-up action should be supported by relevant and adequate documentation and findings of an 'internal' disciplinary authority vested with such powers as per Conduct & Discipline Rules or Standing Orders, as the case may be.

The process should start with warnings, notices, show cause notices, framing charge sheets, and inquiry proceedings findings. Employers cannot stop concerned employees from raising a 'dispute', whether supported by a union, if any, or in the labor court if they are covered under the ID Act, Conciliation by competent authorities, and even arbitration or civil court having jurisdiction.