Legal Question in Employment Law in India

Termination Clause

We have terminated an employee from her services without assigning any notice period and on the grounds of insubordination and poor performance in work. She has taken the matter to the higher authorities and disputes the basis/reason for her termination. Is our reason for termination justified? We are willing to pay her the 1 months notice pay but I need to know if the reasons we have terminated her valid in employement law? and we have these reasons assigned in our Employee manual which she has accepted and signed.


Asked on 4/30/03, 10:49 am

1 Answer from Attorneys
Shraman Sinha Sinha & Co.

Re: Termination Clause

You have not specified whether the emp. was employed under a contract of service or otherwise.If the employment was not contractual then it is also not clear whether her job was "managerial " in nature or not. The term "higher authorities" is also not clear. Has she raised an industrial dispute in a Labour Court or filed a civil suit in a civil court?

If the emp. is under a contract or, if not under contract, performs a job mainly of a managerial nature then your action is fine. Payment of salary in lieu of one month notice on termination is also fine if not provided otherwise in the contract, if any. However if she is a "workman" under the Industrial Disputes Act i.e basically not employed under any contract of service OR was not performing any managerial work but only skilled, semi-skilled , unskilled or supervisory work then the reasons for termination will have to stand the test before the Labour Court. You will have to prove beyond reasonable doubt your specified charges against the emp. and also satisfy the court that the emp. was given an opportunity of being heard through show cause notice.

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Answered on 4/30/03, 11:50 am


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