Termination on a voluntary basis
When an employee decides to leave their position or end a contract before it is finished, this is known as a voluntary termination.
The following grounds for terminating employment are included in voluntary terminations:
- The conclusion or expiration of a grant or contract
According to the terms of their contract or offer letter, the employee commits to performing a specific activity for a predetermined amount of time.
- Resignation for reasons that are known or unknown
The employee initiates the separation/resignation process after deciding to leave the position.
Unintentional Termination
Being fired from a job due to the employer’s decisions rather than the employee’s is known as an involuntary termination. Even if the worker is still willing to work, it occurs when the employer chooses to terminate the employment.
Only certain grounds specified in formal guidelines may be used by employers to terminate an employment contract. Before ending an employee’s job, they must provide them 30 days’ notice and a formal, signed notice.
Involuntary termination requirements:
- wrongdoing on the part of employees, whether little or major.
- occurrence of a manufacturing closure or company liquidation.
- business suspension because of unforeseen circumstances.
- Employee death.
What are the potential grounds for firing an employee?
Employees can be fired for a variety of reasons, including voluntary and involuntary termination. Both have been mentioned below.
Reasons for Voluntary Termination
The ten potential grounds for an employee’s voluntary termination are listed below.
- Retirement: When an employee reaches the age of 60 , they voluntarily quit the organization.
- Better Work Opportunity: The worker departs in search of a more favorable role elsewhere.
- Greater Salary: Workers depart in search of greater compensation.
- Work Environment: When employees are unhappy with their jobs, their hours, or their working environment, they quit.
- Conflict: Unresolved disagreements at work cause employees to quit.
- Military Service: A worker departs to serve in the armed forces.
- Contract Termination: Academic or non-academic employment contracts come to an end.
- Family Reasons: Leave taken by employees for partner assistance, family, or kid care.
- Higher Education: Workers take time off to pursue further education.
- Health Reasons: Workers take time off to address personal health concerns.
Reasons for Involuntary Termination
The ten potential grounds for an employee’s involuntary termination are as follows:
- Damage to Company Property: Termination may result from unintentional or deliberate damage to company property.
- Possession of Drugs or Alcohol at Work: Being intoxicated at work impairs performance and may be prohibited.
- Falsifying Company Records: Improper use of company records may result in legal repercussions.
- Insubordination: Disobedience to directives or obstruction of superiors may lead to termination.
- Misconduct: This category covers theft, fraud, harassment, bullying, and unethical behavior, all of which are grounds for termination.
- Poor Performance: Termination may result from persistently poor performance, missing attendance goals, many warnings, not meeting KPIs, or requiring continual supervision.
- Stealing: Stealing from the company is a crime that can result in termination, regardless of the value.
- Using corporate Property for Personal Use: While occasional personal use of corporate resources is permitted, excessive personal usage is not.
- Excessive Time Off: Being late frequently, taking too many sick days, or taking too many vacation days might affect your job and result in termination.
- Violation of corporate Policy: Violations of any corporate policy, including those pertaining to social media or workplace conduct, may result in termination.
How may an employee be fired?
procedures for firing a worker
To fire an employee, follow these eight steps:
Step 1: Let the Employee Know
Explain the termination in plain terms, excluding any extraneous information. Be direct and succinct. To properly notify the employee of their termination, send a letter.
Step 2: Select the Right Time
Choose an appropriate time before mailing the letter of termination, such as a Friday for a cooling-off period over the weekend or a weekday for an urgent job search.
Step 3: Get the last paycheck ready.
Compute and compile the final paycheck right away, making sure to include any unpaid salaries. Prevent payment delays.
Step 4: Gather Business Assets
Keys, access cards, and other business property should be gathered during the termination meeting. Stress how important it is to keep company information private.
Step 5: Discuss a Severance Contract
Once the termination has been confirmed, discuss a severance package, if applicable. Make a formal contract that offers the employee more money in return for not pursuing legal action.
Step 6: Assign a Reference Coordinator
Determine who in the organization will handle the terminated employee’s reference requests. When supplying references, use caution to avoid any legal issues.
Step 7: Help with Benefits for Unemployment
If necessary, assist the qualified worker in completing the application for unemployment benefits.
Step 8: Take Legal Counsel Into Account
Assess the circumstances and seek legal advice if there are any complicated issues or legal requirements, or if the fired employee has lodged grievances against the business.
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What labor legislation governs an employee’s termination?
Along with state-specific regulations and labor laws, the Industrial Disputes Act, 1947 (ID Act) for workers serves as the primary framework for employment termination laws in India. Below is a brief explanation of them:
- The Industrial Disputes Act (ID Act) of 1947
For workers classified as “workmen” in India, termination of employment is governed under the ID Act.
With the exception of those in management or administrative positions or those making more than INR 10,000 per month, workers are defined as those who perform manual, unskilled, skilled, technical, operational, clerical, or supervisory labor for pay or compensation.
It offers clauses for terminating employment, such as retrenchment and certain rules for reduction-in-force.
- The 1946 Act on Industrial Employment (Standing Orders) (IESOA)
Employers are required under the IESOA to create standing orders that outline the terms and conditions of employment.
A series of regulations known as standing orders addresses several facets of employment, including how to terminate employees.
- The 1961 Maternity Benefit Act
Employees cannot be fired by their employers in the following situations:
when female workers are on maternity leave in accordance with the 1961 Maternity Benefit Act.
when workers are away because of pregnancy-related illness, receiving maternity, disability, or sickness benefits, or seeking medical care.
Fourth, the 2016 Rights of Persons with Disabilities Act
prevents discrimination against people with impairments in the workplace.
prohibits disability-based termination in the event that the correct processes are not followed.
- The 2019 Transgender Persons (Protection of Rights) Act shields transgender people against discrimination in the workplace.
forbids termination on the basis of gender identification in the event that the correct procedures are not followed.
- The 2017 Acquired Immune Deficiency Syndrome and Human Immunodeficiency Virus Prevention and Control Act
prevents discrimination against people with HIV/AIDS, including in the workplace.
prohibits termination if appropriate processes are not followed because of HIV/AIDS status.
- State-Specific Laws and Rules: Every Indian state has its own labor laws and regulations pertaining to the termination of employment, particularly for businesses.
These state-specific laws specify how non-workmen category employees are terminated and what notice is required.
Employers risk having their employees fired illegally if they disregard the rules outlined in the Indian government’s aforementioned laws. Employers may encounter legal issues in these situations.
