Q-4: Explain the procedure of termination of employee.
Ans: TERMINATION OF EMPLOYMENT [S.0.12]
This Standing Order prescribes the procedure, which is to be adopted for the termination of employment of a workman. It is laid down that in case the employment of a permanent workman is to be terminated for any reason other than misconduct it is must that one month’s notice is given to him or he must be paid one month’s wages in lieu of the notice. The same position will have to be adopted by the permanent workman who wants to leave his job of his own accord. However this notice or payment will not be required in the case of a temporary workman or a badli. Whenever the employment of a workman is terminated or he is retrenched, removed, discharged or dismissed from service this must be affected by means of an order in writing, which must clearly give the reasons for that action. In case the workman is aggrieved by such an. action he can, take action as provided by Section 25 A of the Industrial Relations Ordinance 1969.
When the services of a workman are terminated all his dues shall be paid before the expiry of the Second working day from the day when his services are terminated. For the termination of the services of a permanent or temporary workman on the ground of misconduct the procedure provided by Standing Order No. 15 will have to be adopted.
In the case where the services of a workman are terminated by the employer or he himself resigns the employer will have to pay a gratuity equal to twenty days wages besides any benefits to which the worker is entitled under this Ordinance or terms of his employment or custom but in case where provident fund exists and the employer also contributes equally, no such gratuity will be required to be paid. So far as provident fund is concerned whatever amount becomes due in the account of the workman will have to be paid to him in both cases i.e. when he resigns or he is dismissed.
Standing Order 12 prescribes the procedure, which is to be adopted for the termination of services of a permanent workman as:
1. For terminating employment of a permanent workman, for any reason other than misconduct, it is a must that:
(i) One month’s notice ntust be given either by the employer or the workman, or
(ii) One month’s wages calculated on the basis of average wages earned by the workman during the last 3 months must be paid in lieu of notice by the employer.
(iii) Above rules will have to be followed by the permanent workman who wants to leave his job voluntarily.
2. For terminating the services of a permanent workman on the ground of misconduct the procedure prescribed in Standing Order 15 will have to be followed.
3. An order in writing clearly stating the reasons for the action shall be made where the services of a workman are terminated.
Note: Termination includes removal, retirement, discharge, and dismissal from service.
4. If the workman is aggrieved by the above action of the employer, he may take action under Section 25A of Industrial Relation Ordinance.
5. Where the services of a workman are terminated or he resigns from service he shall be entitled to the following payments:
a. Wages earned.
b. Payment for unveiled leave.
c. Any benefit under the Ordinance.
d. Gratuity equivalent to 30 days wages.
e. As an alternate to gratuity, amount at the credit in the provident fund.
f. Dependants shall be entitled to gratuity.
7. All due shall be paid before the expiry of the second working day from the day on which services are terminated,
8. Gratuity payable shall be calculated on the basis of wages admissible in the last month of service.
Termination Of Workman Other Than Permanent [S. O. 12(2)]
Where the employer terminates the services of (a) temporary, (b) probationer or (c) badlie workman no notice shall be required to be given.
Note: Temporary workman may be monthly rated, weekly-rated, daily-rated or piece-rated.
Where the workman leaves the employment of his own accord, he need not give any notice or pay wages in lieu thereof.