The Industrial Dispute Act uses the term “retrenchment” instead of “termination”. Retrenchment is defined as termination for any reason except as punishment inflicted by way of disciplinary action, retirement/superannuation, termination for continued ill-health, or expiry and non-renewal of the term of an employment contract. Reasons for retrenchment could be redundancy, non-performance, or loss of confidence in the worker for various reasons. The Industrial Disputes Act also delineates the manner of retrenchment of workmen and provides a mechanism for the computation of their severance compensation. Workmen may be retrenched only for just cause and after complying with various statutory requirements, failing which the aggrieved workman or representatives of the workman can raise an industrial dispute in connection with the termination.
A former team manager of an Indian Premier League (IPL) team, Kings XI Punjab was recently served a termination notice way before his contract ended. Major Varoon Parmar is a recognized human resource planner in the sports fraternity and he had worked with Kings XI Punjab since the last 10 years. Yet, according to him he was served a termination notice on the grounds that due to the bad performance of the team a change was needed so that results could be better and hence as a part of change in strategy there were several changes in the support staff. According to Parmar he was never entrusted with the tasks related to sports skills and was operationalized in the department of logistics and hence the reasoning given for his termination was totally wrong.
Terminating employees is one of the most unpleasant aspects of a business owner or manager’s job duties, but sometimes it is absolutely necessary in order to continue the business of the employer. But if terminating an employee is necessary, then it should be performed in the most ethical, and professional manner possible. Though a reply is yet to given in this case by KPH Dream Cricket Private Limited, its Chief Executive Officer (CEO) Satish Menon and Chief Financial Officer (CFO) LC Gupta and a hearing has been scheduled on 4th January 2020, there is a proper procedure for termination and the employer must be given a chance under the principle of Audi Alter Partem14 i.e., Right to be heard that is the basic principle of natural justice, decision to terminate employment should be taken depending on the gravity of the misconduct on the part of the employee and the employee might be given a show cause notice on why the termination should not be done.The process needs to be followed as per the principles of natural justice and the employee should be given an opportunity to submit his defense and call upon witnesses.
For case specific advice, you can contact Top/Best/Expert Service Matter Lawyer in AFT/CAT/High Court Chandigarh lawyer who deals in matter of illegal termination and retrenchment.
This post is written by Abhay Tripathi. For more, dial 99888-17966.