Improper termination can expose employers to litigation, compensation claims, and reinstatement orders. Indian labour law sets strict conditions for lawful termination.
Voluntary resignation
Termination for misconduct
Retrenchment due to downsizing
Closure of business
🔹 Notice Period
Typically 30–90 days depending on employment contract.
Industrial Disputes Act requires 1-month notice in most industrial establishments.
🔹 Retrenchment Compensation
15 days’ average wages for every completed year.
🔹 Domestic Enquiry for Misconduct
Written charge sheet
Opportunity to defend
Inquiry report
Blockquote: “No employee should be terminated in India without due process — fairness is a legal obligation, not a choice.”
Relieving letter
Experience certificate
Full & final settlement
Q1: Can an employer terminate without notice?
Yes, only for proven misconduct after domestic enquiry.
Q2: Is gratuity payable on termination?
Yes, if the employee has completed 5 years of service (with some exceptions).
Q3: Can an employee withdraw resignation?
Yes, before acceptance unless contract provides otherwise.
Q4: Is court approval needed for retrenchment?
Yes, in establishments employing 100+ workers.
Q5: What if termination rules are violated?
Employee may claim reinstatement, full salary arrears, and compensation.
