Employee Termination & Suspension

Meaning & Definition

Employee Termination occurs when an employee’s employment is terminated by the Company due to resignation, organizational decision, misconduct, redundancy or poor performance. Suspension involves the removal of an employee from all duties for a specified period of time while an investigation into an employee’s alleged misconduct or a disciplinary action against that employee occurs. Both procedures have to be carried out in compliance with company policy and the relevant labour laws.

Important Aspects of Employee Termination & Suspension

• The organization will provide a fair and well-structured process for taking disciplinary action against its employees.
• Have documented procedures and processes to protect the company from legal exposures.
• Disciplines employees for disregarding or violating workplace rules and standards of professional conduct.
• Ensures compliance with Employment Contract and HR Policies.
• Protects the reputation of the organisation & the rights of the employee.

Applicable Regulations & Policies 

• The processes for termination or suspension are required to adhere to the Industrial Disputes Act 1947 (if applicable). 
• The notice period, layoff compensation, and due process must be followed per applicable labour laws. 
• Termination and notice conditions may also be provided under an individual state’s Shops and Establishments Act for that state. 
• During any disciplinary proceeding, you must comply with the principles of natural justice.