Employer-initiated termination in India, Termination Provisions & Notice in India

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Termination Provisions & Notice

Termination means the end of the employment service. It can be initiated by either party. After termination, the employer/employee relationship comes to an end. Certain provisions must be followed in respect of termination. Generally termination provisions are mentioned in the contract of employment or in the Standing Orders applicable to the industry.

Reasons For Termination

Employer-initiated termination

Employer-initiated termination can occur for the reasons:

fixed term/contract coming to an end;

unsatisfactory probation;

termination by notice;

medical reasons;

breach of contract;

dismissal;

retirement; and

retrenchment.

Employee-initiated termination

Employee-initiated termination can occur in the following instances:

resignation during probation;

resignation with notice;

breach of contract; and

medical reasons.

Termination provisions

Notice should be in writing. If an employee intends to leave the service, the employee should give notice of this intention in writing to the employer. If the employee wishes, the employer has the right to accept the resignation with immediate effect (subject to payment in lieu of time worked).

The notice provisions for termination

As provided specifically in the contract of service, the employer may terminate the services of an employee after giving notice in writing or on payment of wages in lieu. The employer reserves the right to require an employee to work and not to relieve the employee during the notice period.

For temporaries, casuals and probationers, no notice is required if the service is terminated before the expiry of the period, subject to the provisions of the statutes.

There is no provision in law specifying the number of days of notice to be given to an employee while terminating services. Normal practice is that one-month notice is given for junior-level employees, with up to three months for senior level employees.

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