Termination of employment may take place due to misconduct, discharge or retrenchment.
- MISCONDUCT : Termination of employment can be for misconduct, for which the employer is required to conduct disciplinary proceedings . The procedure to terminate an employee in India, for conducting a disciplinary proceeding has been set out under law. It includes constituting and having a disciplinary panel, serving a show cause notice to the errant employee, and giving the employee a reasonable chance to put chance to put forth his defense. Proceedings have to be conducted in a fair manner, keeping in mind the principles of natural justice.
In some cases, the outcome of the disciplinary proceeding may justify dismissal without notice and any compensation. Under the law, the term misconduct provides a list of circumstances and events would amount to Misconduct. It is an inclusive list and hence the employers have the right to include in their company policies/ service rules, such other events as it may deem fit, which would in their line of business amount to misconduct.
Misconduct includes Wilful Insubordination or Disobedience; Theft , Fraud or Dishonesty; Wilful damage or Loss of employer’s property; Bribery; Habitual lateness or Absence; Striking unlawfully and Sexual harrasment.
The aforesaid procedure for termination will apply to all employees whether workman or non-workman.