To maintain the principle of natural justice, the delinquent employee is served with a notice justifying the charges of his/her offense/misconduct and asking for an explanation or to present his/her stand on the charges within a reasonable time. This ensures that he/she is given a fair chance to present his/her case, which is called a show cause notice.
For example, if an employee remains absent from duties frequently without prior sanction or intimation, and without valid reasons, or remains absent from duties without intimation for more than 10 consecutive days, he is liable for disciplinary action under applicable standing orders. If despite being issued warning letters for this misconduct multiple times earlier, the employee does not show improvement, then he may be served with a show cause notice asking why appropriate disciplinary action cannot be initiated against him. In some cases, there can be a 1st show cause notice, 2nd show cause notice, and final show cause notice to provide ample chances for improvement. If there is still no improvement seen, then the employer can initiate appropriate action against the employee.