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Why Companies Force you to Resign? | Job Termination Rules | Termination Without Notice Period
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About this video:
Rules governing termination of employees in India
The employee termination decision most probably falls under one of the reasons described above. Whatever the cause of firing the employees, certain federal and central rules must be followed by every organization. Here are the 6 important rules that one must abide by before terminating one’s employees.
A 30-to-90-day notice period is standard for terminating the workforce in one’s organization. Stated under the Industrial Disputes Act of 1947, the law mandates that when terminating more than 100 members working in a manufacturing plant, mine or plantation unit, government approval is required. Terminating employees in other sectors requires only a government notification.
Under the Indian labor laws, an employee can be lawfully terminated from an organization for one of the following reasons:
Disobedience or will full insubordination
Fraud, dishonesty, or theft
Loss or Damage to the employer’s goods willfully.
Taking bribes or illegal gratifications.
Absence without applying for leave for more than 10 days.
Late attendance.
Disorderly behavior during work.
Negligence of work.
When organizations terminate their workforce for convenience, the policy regulates that the last person to join the organization must be the first one to leave. Also, when the organization rehires for the same or similar job roles, the terminated workforce should be prioritized.
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Why Companies Force you to Resign? | Job Termination Rules | Termination Without Notice Period