Q. What are the valid reasons for terminating an employee?
An employer can terminate an employee for valid reasons such as repeated misconduct, inability to perform duties, or redundancy due to economic reasons. Termination must follow the due process outlined in the Labour Law. Arbitrary termination without just cause can lead to compensation claims. Written documentation is essential in all cases.
Q. Is notice required before termination?
Yes, notice is required unless the termination is due to gross misconduct. The notice period is usually two months for employees with less than ten years of service and three months for those with more. The employer must pay wages during the notice period or provide compensation in lieu of notice. Failure to give proper notice can be challenged legally.
Q. Can an employee resign without notice?
An employee may resign without notice in cases of serious employer misconduct such as harassment, unsafe working conditions, or failure to pay wages. In general cases, employees must provide at least a one-month notice. If they fail to do so, the employer may deduct a portion of the final settlement. Written resignation and acknowledgment are recommended.
Q. What compensation is owed upon termination?
Employees are entitled to end-of-service benefits, including unpaid wages, compensation for unused leave, and gratuity if applicable. If termination is found to be arbitrary, the employee may also be entitled to additional compensation. The employer must issue a final settlement and clearance letter. Disputes can be taken to labor courts.
Q. Are there restrictions on terminating pregnant employees?
Yes, pregnant employees are protected by law from termination during maternity leave or due to pregnancy. Any dismissal under such circumstances is considered discriminatory and unlawful. Employers may face legal consequences for violating these protections. Employees can seek reinstatement or compensation.
Q. What is arbitrary dismissal?
Arbitrary dismissal refers to termination without a valid legal reason or due process. If the labor court finds the dismissal unjustified, the employer may be required to pay compensation. The amount varies based on the employee's tenure and salary. Employers should document reasons and follow procedures carefully.
Q. Can employees be terminated during probation?
Yes, employees can be terminated during the probation period without prior notice. However, the employer must still document the reason for termination. The probation period cannot exceed three months. Termination must not be for discriminatory or retaliatory reasons.
Q. Are verbal dismissals valid?
No, verbal dismissals are not legally recognized. Termination must be documented in writing and signed by both parties. Written notice ensures transparency and protects both employer and employee in case of legal disputes. Employees should request written documentation if dismissed verbally.
Q. Is severance pay mandatory?
Severance pay is not mandatory unless specified by the employment contract or collective agreement. However, compensation may be owed for arbitrary dismissal or redundancy. Employers must honor all contractual obligations. Severance policies should be clearly defined in employment agreements.
Q. What happens if an employee challenges the termination?
If an employee believes the termination was unfair, they can file a complaint with the Ministry of Manpower or take the case to labor court. The court will evaluate the legality of the termination and may order compensation or reinstatement. Both parties are encouraged to settle disputes amicably before legal escalation.
