As previously mentioned, any termination needs to comply with federal and state law because these laws supersede contract provisions. However, state law becomes the rule of the thumb for terminating an employee. State law itself is dependent on the area of operations.
☆ LABOUR LEGISLATION GOVERNING TERMINATION IN INDIAN STATES :
In the following section, we examine state laws for termination in several prominent investment destinations in India , including Delhi Union Territory, Maharashtra, Karnataka and Tamil Nadu.
☆ STATE LABOUR LAW IN DELHI UNION TERRITORY :
Under the Delhi Shops and Establishments Act of 1954, an employer cannot terminate an employee who has been with the company for more than three months without giving the employee atleast 30 days of notice or a salary in lieu of such notices. The employer need not give notice if misconduct is the cause for termination. However, the employee in such circumstances, should have an opportunity to reasonably explain the charge against them prior to termination.
☆ STATE LABOR LAW IN MAHARASHTRA :
Under the Maharashtra Shops and Establishments Act, an employer cannot terminate an employee who has been with the company for more than a year without giving the employee atleast 30 days of notice in writing. If an employee has been with the company more than 3 months but less than a year, the employer needs to give atleast 14 days of notice. The notice is not necessary if the employee is being terminated for misconduct.
LABOUR LAW 