According to the Maharashtra Shops and Establishments Act, the employer must be given 30 days` notice to an employee who has been working for the company for more than one year. If an employee has worked in the company for more than three months but less than a year, the employer must give at least 14 days` notice. As in most countries, workers in India who are laid off by employers often receive one month`s notice or payment of a month`s salary instead. Wrongful termination or failure to follow due process in accordance with state laws will result in legal penalties for the employer. In addition, the courts may order the employer to pay fines and award additional compensation to a dismissed employee. In India, there is largely no concept of arbitrary employment and employment can only be dismissed for valid reasons, with the exception of persons in managerial positions in some states. Termination procedures vary depending on the reason an employee is terminated and the class of employee. Although the «just cause» for dismissal is not defined by law, the employment relationship may be terminated for dismissal, underperformance, misconduct, old-age pension, sickness or any other legitimate reason. Under applicable state laws in conjunction with federal laws, the employer is generally required to maintain various payroll and payment records, such as a payroll record, a fine record, and a deduction record. Pay stubs must also be issued to employees under federal and state law. As a general rule, an annual declaration under state law must be submitted to the supervisory authorities, which also includes payment reports. Some state laws also provide for a retention period for employment records.

Under what circumstances can an employer terminate an employee without notice or notice? A notice period of 30 to 90 days is the norm for terminating your own organization`s workforce. Under the Industrial Disputes Act 1947, the law requires government approval if more than 100 members working in a manufacturing plant, mine or plantation unit are dismissed. The dismissal of employees in other industries only requires official notification. As mentioned earlier, any termination must comply with federal and state laws, as these laws supersede the terms of the contract. However, state law becomes particularly important if there is no defined termination procedure. In such scenarios, state law becomes the rule of thumb for firing an employee. The law of the State itself depends on the field of activity of the employer. Employees` medical histories are not readily available because they are not digitized and there are no records for medical records.

The employee`s consent is required to disclose medical records to the employer. However, some employers require employees to undergo medical examinations and for the diagnostic centre to send the report directly to the employer. Subject to certain specific restrictions (e.g. pre-employment testing is not permitted), this practice is not prohibited under Indian law. Overall, the law does not address the right of employers to regulate off-duty conduct. Employers generally insist in employment contracts and conditions of service that employees cannot work elsewhere, and the courts have upheld these provisions. Some employment contracts stipulate that discrediting the employer is grounds for disciplinary action. The instructions for the use of employer-provided equipment also apply to the use of these devices outside the workplace. Another important aspect is the move towards e-governance in the field of labour law.

A new web portal launched by the government provides users with a unique job identification number that facilitates online registration, the filing of self-certified, simplified and unique online declarations for certain federal laws, and a transparent labour inspection system based on risk-based criteria. Some concessions have also been granted to start-ups in terms of compliance with labour law. In India, there is no standard procedure for firing employees. An employer may terminate an employee in accordance with the terms of the employment contract between the employer and the employee or in accordance with the provisions of a law. An employer may be held liable for wrongful dismissal. Employees are entitled to some legal protection against unfair dismissal, as they are protected against dismissal for reasons contrary to the law or public order. Employees must inform the employer before leaving or terminating their employment with the organization. Thus, the employee is entitled to service of the notice period in accordance with the employment contract. Except in states that require an order of appointment, Indian law does not explicitly require that an employment contract be in writing, although this is the typical practice of most employers. In India, the right to employment gives the employer the right to hire the most suitable employee for his organization. The employer has all the rights and has the right to dismiss any employee in case of violation by the employee or non-compliance with the vision of the organization or in case of misconduct. However, the employer must follow the hiring and firing process in accordance with legal requirements and avoid the organization ending up in unnecessary litigation.

The employer may not discriminate against an employee on the basis of caste, religion, age or sex. The employer`s right to dismiss an employee includes the dismissal, suspension or transfer of the employee. For other employees, most states also require a 30-day notice period or payment in lieu of a notice period. For each employee who has served five consecutive years, a bonus of 15 days is paid for each year of work or part of work of more than six months. Statutory benefits are generally always payable unless: The Industrial Disputes Act 1947 requires a period of notice of 30 to 90 days for the dismissal of «workers». In the case of production units, plantations and mines with 100 or more workers, dismissal for reasons of convenience requires government approval; In other sectors, only regulatory notification is required. An employee can only be dismissed without notice or pay for misconduct. In order to terminate the employment relationship for misconduct, it is essential to establish misconduct through a disciplinary inquiry conducted for that purpose in accordance with the principles of natural justice. The employer`s rights include the protection of its clients` information and trade secrets.

Therefore, the employer must have a non-disclosure agreement signed by the employee. It is the employer`s responsibility to protect customer information, as well as the organization`s trade secrets. This obligation continues even after the employee`s departure and extends beyond the course of employment. In addition, the employer has the right to protect the intellectual property rights of organizations from any form of harm caused by the employee. What laws and regulations govern the employment relationship? An employer is fully responsible for hiring and firing people in their organization. However, an employer cannot dismiss an employee without sufficient reason. Dismissal of an employee on the basis of caste, race, color, sex, etc. are illegal grounds for dismissal in many countries. An employee who has taken reported maternity, leave or malpractice in an organization cannot be terminated for these reasons. New labour laws, to be announced shortly by the federal government, make the termination process even more flexible for employers.

In the event that the employee does not serve notice of termination upon withdrawal from the organization, the employer may send a legal notice to the employee. Most Indian states describe their employee firing policies. Some sectors such as manufacturing, plantations, etc. are also protected by central government regulations. Let`s take a closer look at the employee firing policy in some major Indian states. Is there a law that determines entitlement to severance pay upon termination? How is severance pay calculated? Can a legal notice be sent for non-payment of the bonus or the ETH amount? An employer may not change certain terms and conditions of employment (e.g. remuneration, classification and customary concessions) for «workers» (as defined in the Trade Disputes Act 1947) without giving 21 days` notice to the employment authorities. This should be taken into account when implementing changes to an employment contract. During the termination process, employers must maintain a highly professional perspective.

Termination requires a high degree of legal diligence to avoid confrontation and litigation later on. The interests of the employer and the employee must be considered during the dismissal process to allow for a smooth transition for all parties involved.