The term Termination by Employer without any reason is the baseless dismissal of an employee without a satisfactory reason.
Further, an employee may be terminated or fired for several reasons that may comprise of misconduct, fraud, and disclosure of any confidential information.
The term “cause” in this case denotes to the reason for discharge from the employment which, in most of the cases, is determined by the written document, such as the employment contract and the company policy.
Further, in this article, we will explain all that a person needs to know regarding the termination of an employee and how to handle termination in a following job search.
Concept of Termination with Cause
There are several ways by which an employer can end his/ her relationship with an employee. These comprises of termination without cause, with cause or the termination at will.
Further, the termination for a cause arises when the employees’ actions and activities are against the policy and may lead to some serious repercussions for the said company, organisational structure, clients, and other employees.
Furthermore, termination of an employee services with cause may be required by a violation of the rules of the company’s code of conduct or due to continuous poor performance.
Other majors cause comprises of poor working relationships with other working employees, managers, and poor treatment of clients.
Also, it shall be noted that whenever an employee is terminated by employer with cause, the said reason must be clearly stated in his/ her termination letter. However, if an employee is being fired without a clear and specific reason, the said discharge will be termed as the termination without cause.
Moreover, an employer has the right to end his/ her employment relationship that, too, without a good reason, and therefore, it is not needed to justify the said dismissal of services.
However, it is relevant to state that he/ she is obliged to send a termination notice of, 30 to 90 days, prior to cessation of the services and must clear all the dues, by making the payments to the employee as follows:
1. Salary in place of notice when the said notice has not been given;
2. Salary for the worked days which remain unpaid;
3. Encashment of the unused paid leaves;
4. Payment of the gratuity to the said employee, who has served for more than five years or more, as mentioned in the Payment of Gratuity Act 1972;
5. Payment of the bonus for all those employees who have worked for at least thirty days in a financial year and earn up to Rs 10000, based on the provisions of the Payment of Bonus Act 1965;
6. Any other dues contractually settled under the company policy;
Concept of Termination without Cause
The term termination without cause is in itself is a contradictory one, since there is always some or the other reason attached for the termination of service. These can arise when the company fails to satisfy the budget allocation for all the employees working, restructuring their operations or down-sizing.
Further, when an employee is being terminated with cause, the said employer can withhold some of the employees’ benefits. In that case, the employer is also not mandated and obliged to give any further notice period before the termination or provide any compensation thereof.
Furthermore, in the case of termination without cause, some common courses of action comprise of giving a time frame for the termination or paying the correspondent amount of money proportionate to that time frame.
Also, it shall be noted that the employees fired without any valid cause are also qualified to severance pay based on the company’s policy.
Concept of At Will Termination
Besides the termination without cause and with cause, termination may also be done at the sole will of the employer.
Further, it shall be noted that some of the companies also enter into an ‘at-will agreement’ with employees. The said agreement states that the employer has the right to fire an employee at his/ her own will and wish and that, too, without giving any sufficient reasons.
Therefore, before taking up the employment, it is must to read the employment contract carefully and meticulously to know what all he should expect and what all should be avoided, such as the shock of at-will termination. Nevertheless, some states have forbidden at-will agreements to guard employees from unfair labour practices.
Can an Employee Plead Illegal Termination?
Yes, an employee who has been illegally and baselessly terminated can plead the said illegal or wrongful termination in the court of law in the following cases:
- Violation and infringement of the state’s anti-discriminatory laws;
- Violation of the clauses of employment contract or labour laws of India’;
- If in case the termination is viewed as a form of a sexual harassment;
- If in case termination is understood as reprisal to any earlier act by the employees, for example, filing of a complaint against the employer;
In a nutshell, it is very significant for employees to be well aware of their basic legal rights and duties in the work place. Further, if in case one is confronted with any such similar situation, in that case, the first and the prime most step is to consult and appoint a lawyer. A well experienced and qualified lawyer can not only assure legal protection but will also help in taking the informed decisions.