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Sudhir Jha (HR)     02 April 2013

Compensation for termination of employee

Dear All,

 

I have small set up where around 7-8 workers work. One worket joined in the month of July 2009, was working fine but after a few months started showing sysmptoms of unsound mind. Then one day he started fighting with the security guard. He apologised and started to work as usual. He became very talkative and argumentative. Another day a senior official of my client came to visit my work place and he jumped into and tried to handover some blank papers - asking them to solve the questionaire. The officials took it very seriously and asked action from me.

 

I had to terminate him that day (15th february 2011). But paid full months salary on 5th March to him.  On May 2012 he filed a case with Labour Department for illegal termination. As instructed by labour department, I spoke to him and offered a compensation of Rs. 16000/- based on Labour departments calculations. He refused. Then again I spoke to him and appreciating his financial problem I offered Rs. 45000/- towards buying a old car which can earn him regular income. That also he refused in some pretex or other and the draft I prepared became out of date. In the mean time  Labour Department started GC and I was penalised for not maintaining 2 records.

But the worker still sends sms some times wired smses having no meaning !

Please advisae what obligation do I have against this worker ? My business and personal life has already sufferred alot for him. Can I be forced to re-instate a person having unsound mind ?

Kindly advise.

Thanks! 



Learning

 2 Replies

Sourav Hajra (Director)     07 April 2013

Firstly give your employees appointment letters when they join. Do mention in the letter that either party needs to give a notice (1 month period) for the termination of employment.

Terminations are easier to defend when they are justified by a legitimate business reason. Legitimate business reasons could include problems, misconduct, a reorganization resulting in elimination of the employee’s position, or financial considerations.

Regardless of the nature of the employment relationship, an employer should consider establishing work rules that list conduct that could result in discipline or termination.

In your case, you can charge him with riotious behaviour (Fighting with the security guard)

Sudhir Kumar, Advocate (Advocate)     07 April 2013

agreed with sourav


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