Termination of Employment

Submitted To: Dr. Rajasi A. Clerk H.O.D. ± M.L.W. Dept. Gujarat University

Group - Endeavour
Junior M.L.W.
Termination of Employment 1/11/2010


Sr. Roll No. No.
1 2 3 4 5 6 11 07 21 40 35 23

Richard B. Macwan Kuldipsinh A. Jadeja Paresh I. Patel Munjal Bhatt Irina R. Varsat Vishal S. Pathak

Sources of Regulation & General overview Definition & Types of Termination Termination attributable to the employee Judicial stand in India on Termination of Employment Termination of Employment under Closure Acts of Misconduct under the Industrial Employment (S.O.) Act, 1946 Separation of Employment Case study of Mr. Nagpal Case study of Mr. Sawhney vs. J. K. Industries Employment Termination Agreement

Page No.
2 5 8 10 12 13

7 8 9 10

08 37 20 02

Mayur G. Jethva Anupama I. Yadav Nitin T. Patel Priyanka G. Chaurasiya

15 17 21 22

Termination of Employment


14 (2)-(3). fraud or dishonesty. MSO): 1) 2) 3) 4) 5) 6) Willful insubordination or disobedience. some instances of misconduct which may justify dismissal without notice and any compensation in lieu of notice are listed in the Model Standing Order (MSO) and include (Sec. and S Striking unlawfully. Termination of employment: The contract of employment can terminate. in certain circumstances. and The expiry of a fixed-term contract. However. As regards termination of employment for disciplinary reasons. Bribery. this position has been affected by legislative intervention and by the development by the courts of natural justice requirements. Theft. Willful damage or loss of employer¶s property. 1946. including by: 1) 2) 3) 4) Mutual agreement Resignation by the employee Employee¶s retirement. Dismissal: The law relating to termination of employment in India distinguishes broadly between three different situations: Dismissal for misconduct. as amended. not at the initiative of the employer. Indian law starts from the common law premise that an employer has a right to terminate the services of an employee without giving a reason. discharge and retrenchment.Topic: Sources of Regulation & General overview Presented by: Richard B. 1947. Habitual lateness or absence. and the Industrial Disputes Act (IDA). 2 Termination of Employment . Macwan Sources of Regulation: The main statutes which regulate termination of employment are the Industrial Employment (Standing Orders) Act (IESA).

termination of employment in violation of fair labour practices as defined by legislation or case law will not be valid. MSO). 13. Employees¶ State Insurance Act). Notice is not required either for probationers. Under Sec. marital status. hence the ability of a worker to take his or her claim to the Labour Courts. the dismissal or retrenchment of an individual is deemed to be an industrial dispute. religion. The IDA (Fifth Schedule) lists some practices which will be considered to be ³Unfair Labour Practices´. Notice is not required for workers found guilty of serious misconduct such as would constitute summary dismissal. should not be considered as a valid reason for termination of service. sex. badlis or temporary workers (Sec. employees may not be dismissed or discharged while they are in receipt of a sickness benefit or disablement benefit for temporary disablement or are receiving medical treatment for sickness or are absent from work as a result of certified illness arising out of pregnancy (Sec. In case of dismissal on disciplinary grounds. In addition. as allowed under the statute. dismissal by falsely implicating a worker in a criminal case or on false or trumped-up allegations of absence without leave. the worker must be given an opportunity of explaining the charges of misconduct alleged against him/her (Sec. race. MSO). Avenues for redress: Since the 1965 amendments to the IDA (Sec. filing complaints concerning the employer. political opinion or social origin. 73. 13(2). color. 2 Termination of Employment 3 . dismissal without due regard to natural justice or for minor misconduct leading to disproportionate punishment. Notice and prior procedural safeguards: Under the Industrial Employment (Standing Order) Act. pregnancy. The Maternity Benefit Act. These include dismissal on account of trade union activity or membership. 2A). dismissal not in good faith but in ³the colorable exercise of the employer¶s rights´. 1961. dismissal by way of victimization. provides that absence from work during maternity leave.Termination of employment is unlawful if it is for reasons related to trade union membership or activity. Similarly. employers are required to give in writing one month¶s notice or payment in lieu of such notice in order to lawfully terminate the employment of permanent monthly-paid workers. The two weeks¶ notice is required for workers paid on other basis.

However. Challenges to dismissal can be made to the Labour Court under Sec.(a) of the IESA. the judicial body will inquire into the feasibility of reinstatement. in the first instance. Before reinstating an employee. 1971. The Labour Court may review a termination of employment and set aside a dismissal if it decides that the dismissal was not justified. No time limit is prescribed within which an aggrieved worker may raise a labour dispute. 11A of the Industrial Relations (Amendment) Disputes Act. including the examination of the evidence. and to award relief as they see fit including compensation in the form of damages and reinstatement (Sec. IDA). for example. 11A. Termination of Employment 4 . a worker dissatisfied with his or her termination of employment is entitled. to raise the matter as a labour dispute with an officer from the conciliation department of the Ministry of Labour. Industrial Tribunal and National Tribunal have wide discretion to review disputes relating to termination of employment. whether the employee has lost confidence in the employer and whether industrial peace and harmony will be threatened. The officer will attempt to conciliate the matter and must submit a report to the Government if conciliation fails. The burden of proving that dismissal was for a valid reason rests with the employer. The Labour Court. pending a decision from the governmental authority on whether the matter merits adjudication before the Labour Court or Tribunal. excessive delay may prejudice a worker¶s case.

better pay. Types of Termination: There are three types of termination. They are as follows: 1) Voluntary termination: Voluntary termination is a decision made by the employee to leave the job. depending on job type and benefits available following retirement) or else an injury. ³quitting´. This may be as a result of the employee¶s age (which may vary. These may include family obligations. the employer. or other medical condition forcing early retirement.  Factors in employee¶s personal life not related to the jobs that make holding or performing the job impossible or more difficult. Reasons for wanting a different job may be better working conditions. Such a decision is commonly known as ³resignation´. burnout. or in more severe cases. or a career change. or working conditions.  Feared or anticipated involuntary termination. ³leaving´ or ³giving notice. the decision may be made by the employee. graduation. a shorter distance to work.  Hire at a new job. hours. or mutually agreed upon by both. career progression or preparation for entry into a new career. Termination of Employment 5 . The employee may wish to take matters into his/her own hands in order to leave more honorably. education. Depending on the case.´ Some common reasons for voluntary termination include:  Personal dissatisfaction with the job. employer.  Retirement.Topic: Definition & Types of Termination Presented By: Kuldipsinh A. health. Jadeja Definition of Termination of Employment: Termination of employment is the end of an employee's duration with an employer. This is also known as mutual consent in some parts. disability. or moving to a new location. better hours.

as opposed to being laid off. it is sometimes debatable if the termination was truly mutual. A layoff is usually not strictly related to personal performance. known often as being "fired" and "laid off. Often. but the employer offered the mutual termination agreement in order to soften the firing (as in a forced resignation). the employee is laid off for a just cause. is generally thought of to be the employee's fault." To be fired. generally for a reason which is the fault of the employee. accordingly.  Dismissal Dismissal is the employer's choice to let the employee leave. In such a situation. but not replaced as the job is eliminated. In many of these cases. There are two basic types of involuntary termination.2) Involuntary termination: Involuntary termination is the employee's departure at the hands of the employer. unexplained gaps in employment and refusal to contact previous employers are often regarded as red flags. and therefore is considered in most cases to be dishonorable and a sign of failure. 3) Termination by mutual agreement: Some terminations occur as a result of mutual agreement between the employer and employee. the firm itself is going out of business. When this happens. it was originally the employer's wish for the employee to depart. The most common colloquial term for dismissal in America is being terminated whereas in Britain the term 'getting the sack' is used. but instead due to economic cycles or the company's need to restructure itself. and therefore jobs related to that product or service are no longer needed). particularly if he/she has been fired from earlier jobs. it may hinder the new job-seekers chances of finding new employment. One type of layoff is the aggressive layoff. Job-seekers sometimes do not mention jobs which they were fired from on their résumés. a certain type of product or service is no longer offered by the company. or due to a change in the function of the employer (for example.  Layoff A less severe form of involuntary termination is often referred to as a layoff (also redundancy or being made redundant in British English). But there are also times when a termination date is agreed upon before the Termination of Employment 6 .

Some types of termination by mutual agreement include:  The end of an employment contract for a specified period of time (such as an internship)  Mandatory retirement. Some occupations. face mandatory retirement at a certain age and  Forced resignation etc. such as commercial airline pilots. Termination of Employment 7 .employment starts (as in an employment contract).

Usually. and the employment contract placed a requirement on the employee to discharge duties appropriate to those of a managing director. the job description underlines the expectation of the employer that the employee will perform his/her duties appropriate to their designation. This ground has also been the subject of Termination of Employment 8 . Example: Let¶s assume a person is appointed as the managing director with the intent of supervising the operation and growth of the organization. However. During the course of employment. and terminate his/her employment. and fails to do so. counter any allegations by the aggrieved employee of foul play. among others. before the employer terminates the employment. the employer can accordingly hold the person in breach of the employment contract. as is required of a managing director by law. 3) Misconduct leading to termination: The most common ground for termination is usually misconduct. it must collate enough material and information so that it can. If the employee fails to deliver. the person does not act in accordance with the directions of the Board. Patel Termination attributable to the employee: 1) Breach of employment contract: An employer is entitled to terminate on grounds of breach when the employee is required to act in a certain manner by the employer or by the nature of the job. 2) Termination on account of inefficiency: Another common cause leading to severance of employer-employee relationship is inefficiency and lack of performance. This assumes greater significance when key personnel fail to adhere to the terms of their employment contract. and the expectation of the employer expressed under the contract.Topic: Termination attributable to the employee Presented By: Paresh I. at a later stage. and/or directions of management as there is a certain level of expectation that is attached to their appointment. This is a just and equitable ground for termination since it is not reasonable to expect the employer to keep a person employed where the employee fails to perform consistently. It is also common practice to include performance of express or implied directions in the job description as it may not be possible to include all performance parameters required of the employee.

The term misconduct implies an outright breach of duty or obligation arising under the employment contract or the human resource policy or wrongful behavior. and where the reasons forwarded are not acceptable. It is essential for employers to either define precisely what will amount to misconduct or to have an exhaustive uniform HR policy which will describe inclusive instances of how an employee can be removed for misconduct. An employer has to ensure that due process is followed before termination.reporting late to work. willful insubordination and not following instructions of the management or supervisor. With regard to grave misconduct. Usually a process is defined in the context of minor misconduct which. unauthorized absence from work. typically. escalating the matter to the management level or provide pecuniary penalties. Termination of Employment 9 . termination. common examples of actions. negligence in performing duties/work.litigation as under termination for misconduct a certain level of stigma is attached. which are included in HR policy under the term misconduct are . or inactions. misconduct may also be categorized into minor misconduct and grave misconduct. includes warning the concerned individual and where there is no improvement despite a certain number of warnings. the usual practice is to provide the concerned employee with a show-cause notice to justify his/her reasons for the misconduct. In some situations. In practice.

e. While the courts have not defined ³misconduct´. One of the judicially evolved tests to determine whether an order of termination is punitive is to evaluate whether prior to the termination there was: 1) A full-scale formal enquiry 2) Into allegations involving moral turpitude or misconduct which. the termination is held to be punitive irrespective of the form of the termination order. Conversely. the Supreme Court has held that termination of an employee whether simpliciter or punitive has to be decided on the facts and circumstances of each case. Courts in India have a tendency of leaning in favor of employees. if any one of the three factors is missing. Frequent communications from the employer to the employee informing him of his shortcomings. it casts aspersions on the capability of the individual to contribute to the employer and also impacts on future employment with other employers. (a) Termination simpliciter and (b) termination for misconduct. In one such case4. The legal principles governing the relationship have evolved from various judicial decisions and the courts have categorized termination into two categories. 3) Culminated in a finding of guilt. Where an employee is terminated for misconduct. it has set-aside the termination as unreasonable. the termination has been upheld. and where it feels the employer has removed an employee as a punitive measure. In India.Topic: Judicial stand in India on Termination of Employment Presented By: Munjal Bhatt Judicial stand in India on termination of employment As is clear from the foregoing. termination of employment on grounds of misconduct is treated as a punitive action as a certain level of stigma is attached to such a termination. If all three factors are present. punitive. the basis on which the employer-employee relationship is governed is purely contractual and based upon judicial precedents. under the Indian legal regime. lack of performance and unsuitability have worked in the Termination of Employment 10 . the Supreme Court has examined instances where termination is simpliciter or on account of misconduct i.

must be based on facts which can be proved by documentation or evidence. In Avineshwar Sawhney¶s case. the lower court¶s decision was overruled by the appellate court on the basis that the subjective satisfaction of the employer for termination has to be based on objective considerations.employer¶s favor in justifying termination and avoiding long drawn litigation by the employee. The burden lies on the employer to show and place on record the necessary documentary evidence. Additionally. on appeal. i. the employer had terminated the employment of a person on account of inefficiency and loss of confidence by the management. courts in India have held that the reasons for termination of employment must have objective considerations. The lower court upheld the termination order after recording the testimony of the management witness and held that the subjective satisfaction of the employer was sufficient to cause termination. Termination of Employment 11 . However.e.

350. If the government does not convey its decision within 60 days of the application. Termination of Employment 12 . The Industrial Disputes Act. 1946. first-out principle is usually followed. without approval) remain entitled to full pay and benefits. It is usually difficult for large companies to dismiss staff. such as IT firms. Workers in an establishment that is closed illegally (that is. 1947 requires employers wishing to close an establishment to apply for permission at least 60 days before the intended closing date. are exempt). Retrenchments and layoffs require full explanation to and prior approval from the state government.000 after five years of continuous service. (Retrenchment under an agreement specifying a termination date requires no prior notice. Dismissal for misconduct is allowed without notice under the Industrial Employment (Standing Orders) Act. The Payment of Gratuity Act 1972 entitles workers to a gratuity of up to Rs.Topic: Termination of Employment under Closure Presented By: Irina R. A company can appeal against a rejection to the Industrial Tribunal. Varsat Termination of Employment: Existing regulations require companies to obtain government permission to close an operation or lay off workers in firms with 100 or more employees (service-industry companies.) The last-in. approval is deemed granted.

state or national law  Being sexually or physically abusive  Working under the influence of alcohol or other drugs  Failing to follow established safety policies and procedures  Fighting or the deliberate harming of another  Insubordination or refusing to perform assigned work  Destroying property intentionally  Using obscene or abusive language  Possessing firearms. planning.) Act. or other weapons or dangerous materials on property  Using property without proper authorization  Using time granted for leave.  Releasing confidential information without authorization  Being convicted of a crime: local.  Absenteeism  Lateness  Failure to comply with Absences Notification and Certification Procedure  Poor effort at work  Performance of duties below an acceptable standard  Failure to complete time sheets as instructed Termination of Employment 13 . receiving. viewing or downloading illegal material via the internet.O. and workshops for purposes for which it is not intended  Falsification of documents  Sleeping during scheduled work hours  Receiving or making excessive personal phone calls  Engaging in threatening or intimidating behavior  Using computers for storing. sending. 1946 Presented By: Vishal S. Pathak Acts of Misconduct: Now with standing to the general meaning of the terms of misconduct. the following acts and/or omissions which are illustrative and not exhaustive? Shall be treated as serious misconducts:  Theft  Engaging in gross incompetence or gross negligence  Permitting or helping an unlicensed person perform activities requiring a license or falsifying documents.Topic: Acts of Misconduct under the Industrial Employment (S.

Termination of Employment 14 . Discrimination etc.               Ignoring safety/ hygiene/ security rules Extended meal breaks Failure to maintain a tidy and safe working environment Misuse of telephone or other organizational resources Serious neglect of safety/ security rules Smoking in prohibited areas Willful or excessive wastage of material Unsatisfactory attitude to visitors or members Leaving the premises without permission Insubordination Refusal to carry out a reasonable work instruction Deliberately ignoring safety/security rules Disclosing confidential business information to a third party Falsification of records and.

no notice is required if the service is terminated before the expiry of the period. Termination of Employment 15 . 3) An order relating to discharge or termination of service shall be in writing and shall be signed by the employer/management and copy thereof shall be supplied to the employee concerned. d) Loss of confidence by the employer in an employee due to leakage of information or propaganda against the management. continued ill health. The employer may terminate the service of an employee who is on probation without giving on month¶s notice or salary in lieu thereof. senility. In case of services of temporaries/casuals. Jethva Separation of employment: 1) Except as provided specifically in the contract of service. contagious or infectious diseases. unfitness for employment with the employer as declared by the employer¶s doctor or for loss of confidence. no such order will be given to individual employees. physical infirmity. In cases of general retrenchment on closing down of office. Subject to the provisions of statues. e) Insolvency. b) Conviction in a criminal case.Topic: Separation of Employment Presented By: Mayur G. in case the employee is on full time contract with the management. c) Engaging in any vocation without the written permission of the management or found to have been working elsewhere during the period of leave. the employer may terminate the services of an employee after giving one month¶s notice in writing or on payment of wages in lieu thereof. 2) The employment of a permanent employee shall be liable for termination on the following amongst other ground: a) Insanity. The management reserves the right in requiring employee to work and not relieving him during the notice period.

custody or change before the last payment of outstanding wages. who wishes to leave the employer¶s service. and other prop[arty in the employee¶s possession. books. 6) Employees other than those who have service bonds to serve the employer for a specified period. Surrender in lieu thereof wages equivalent to the days for which the notice falls short of one month. instruments. which also includes the initiation of legal proceedings in the court of law. custody or charge shall be recoverable from him and without prejudice to any other mode of recovery. an employee shall give a proper account of all identity cards. He shall give one month¶s notice of his intention to do in writing to the employer or may if he wants to be relieved earlier.4) Is an employee intends to leave the service. papers. The employer also reserves the right to accept the resignation with immediate effect subject to payment in lieu thereof. instruments and other property of the employer in his possession. 2) Employee will be required to compensate the employer for all losses/damages caused by him to the employer¶s official premises and all movable property therein. at the discretion of the management. 5) No notice or wages in lieu of notice shall be necessary. tools. may be recovered by adjustment against whatever dues are payable to him. will be required to give the employer notice as per terms of appointment. But if the exigencies of the work so require. The value of all shortages and/or damages to the employers tools. clothing. 3) Failure to comply with all or any of the above provisions shall entitle the employer to withhold the employee¶s dues to make appropriate deductions there from and to take such other action as may be deemed fit. reports and records. the employer may refuse to relieve him earlier than the entire period of notice. If the service of an employee are dispensed with for misconduct. Employee on termination to give account of the employer¶s property: 1) On termination/resignation of the service. Termination of Employment 16 .

Nagpal was responsible for monitoring and regulating the work of two to three associates in his team in addition to provision of software development services. to hire. Shyam Nagpal have been terminated by an IT company with immediate effect for misconduct and the Company now wants to understand the legal consequences of such termination. Nagpal¶s services and is assessing its implication and exposure under law. in the interest of the employer. Mr. Yadav Termination of Employee for Misconduct: Case . Supervisor means an individual having authority. Nagpal¶s termination and consequences thereof under Indian laws would be largely determined by the crucial question whether Mr. clerical or supervisory work for hire or reward.Topic: Case study of Mr. Considering Mr.per month or exercises functions mainly of a managerial nature is excluded from the definition of a workmen. recall. unskilled. Nagpal was engaged in software development and was officiating as a ³Group Leader´. skilled. Nagpal¶s performance for the first one year of service was above average but his performance deteriorated thereafter and he often reported late for work. reward or discipline other employees or responsibility to direct them or to adjust their grievances or Termination of Employment 17 . Mr. Nagpal Presented By: Anupama I. A person who is employed mainly in a managerial or administrative capacity. 1600/. Nagpal was a µworkman¶ within the definition of IDA. transfer. promote. An employee is termed as a workman if he is employed to do any manual. Assessment: The validity of Mr. Mr. or who being employed in a supervisory capacity draws wages exceeding Rs. operational. assign. Nagpal¶s lack-luster performance and due to company¶s decision to downsize its work force. As a Group Leader. suspend. discharge. Nagpal¶s services were terminated with immediate effect with one month salary in lieu thereof.1 For the purpose of clarity let us take a hypothetical situation where the services of an employee say one Mr. technical. Mr. lay off. The Company soon realized that it has failed to undertake proper steps to dispense of Mr.

Termination of Employment 18 . managerial or supervisory work. An employee may at times be required to perform managerial. but incidentally or for a fraction of the time.. Nagpal will not convert his employment as a skilled workman into one in supervisory capacity. supervisory or administrative work. but such occasional performance by itself does not determine the real status of the employee and it is the principal or major duty performed by the employee that determines the employee¶s real status and whether or not the concerned employee is a workman under the IDA. whether Mr. then he was employed in supervisory capacity and would not be a workman under the IDA. or (b) Of a nature carried out by a software developer.e. whether such an employee has been discharging administrative. the mere fact that some supervisory duties were also carried out incidentally or as a small fraction of the work done by Mr. The Supreme Court of India has repeatedly held that it is the principal duties being performed by an employee which are to be considered for the purposes of determining the real status of the employee namely. If Mr. if the main work done was of software development. Nagpal was mainly doing supervisory work. Conversely. he had powers to give directions to the others as to the actual manner in which they were to perform and carry out their duties and scrutinize the work done by others in order to ensure that it was being done properly. Indian Labour Tribunals and Civil Courts have considered the actual and predominant duties discharged by an employee and remuneration received by such an employee as the basis to determine classification under ³workman´ or ³non-workman´ category and held that mere managerial or administrative designations are not conclusive of the status of any employee as ³nonworkman´. In nutshell.effectively to recommend such action and in exercising such authority he uses of independent judgment. who presumably was not exercising managerial or administrative function. Consequently. Nagpal. to superintend and direct. also did some software development work. was employed in a supervisory capacity as a Group Leader or for technical/software development work would depend on whether the main and principal duties carried out by him were: (a) Those of a supervisory character i. a supervisor is one having authority over others.

enquiry. filings/prior approvals from the government. and Issue order of punishment. Termination of Employment 19 . manager.e. the IDA and guidelines evolved from various court decisions as follows: 1) 2) 3) 4) 5) Issue a charge sheet. etc. or terminated on ground of continued ill health. Nagpal would be classified as ³workman´ in terms of IDA.. the procedure for dismissal of an employee (who is classified as ³workman´ under IDA) on account of misconduct and/or indiscipline (which should be normally incorporated into the Employee Handbook of a company) would need to be in terms of broad principles of natural justice. agent or other officer concerned with management liable for the prosecution and penalties if it is proved that the offence(s) was committed with knowledge or consent and would entitle the terminated employee to raise dispute before the labour court and seek reinstatement of services with back wages. Peruse the report of the enquiry officer. termination of Mr. In terms of IDA. Contravention of the provisions of the IDA renders the company¶s directors. In view of the foregoing. 15 days average pay for every completed year of continuous service. Issue show cause notice to the employee. if required. Nagpal¶s services for misconduct without following the principles of natural justice viz. Nagpal was primarily of a software development and not supervisory. an employee in workman category who has been in continuous service for at least one year cannot be terminated at will of the employer unless the employee is dismissed by way of disciplinary action or as a result of non-renewal of contract of employment. sending notice. payment of prescribed compensation. secretary.Considering the nature of work performed by Mr. For termination of services on disciplinary grounds. Hold a domestic enquiry. i. notice. etc. providing opportunity of defense to the employee may be open to challenge. Termination for any other reason whatsoever including termination of service on ground of reduction in volume of business amounts to retrenchment and the IDA prescribes detailed procedure for retrenchment of a workman including compliance with last to come first to go rule. Mr.

Nagpal including gratuity as per the Payment of Gratuity Act. Nagpal to improve his work and productivity should also be part of this paperwork. 1972. Nagpal¶s poor performance at work. it is advisable to be guided by the rules and guidelines stated in the Employee Hand Book and exercising due precaution and adherence to the termination related procedure prior to discharge of employees for misconduct. Termination of Employment 20 . if applicable. at the earliest. To minimize employee related disputes and grievance. it is advisable for the company to undertake the following: (i) The Company should immediately clear and pay all pending dues of Mr. The Company¶s notices/reminders to Mr.Remedies: To minimize the exposure arising from termination of Mr. (ii) The Company should maintain adequate supporting evidence to show Mr. Nagpal¶s services for misconduct without following the procedure prescribed under IDA.

Topic: Case study of Mr. Patel Termination of Employee for Misconduct: Case . The employment contract provided that the employee was hired for a period of five years. or leads to protracted legal disputes the employer and employee must try to insert specific grounds for termination in the employment contract. therefore. pertinent that the employer very carefully considers the provisions under the contract. The employee was hired in 1975 for a period of five years. J. the employer has been held liable to pay compensation. Industries Limited the employer had terminated the employment. It is. This case has been discussed further ahead. For example. Industries Presented By: Nitin T. or acrimonious. Termination of Employment 21 . K. solely on the basis of a sentence under the contract. and factors in judicial precedents. the subjective considerations must be based on objective facts. however. K. The court had further held that termination of the employee can indeed be carried out on subjective considerations. and the termination would be carried on grounds of misconduct and breach. Sawhney vs. The employment was terminated in 1977 and the employee sued the employer and sought arrears of salary from 1977 till 1981 for wrongful termination.2 In order to ensure that termination is not bitter. J. was that the clause provided that the employer shall not ordinarily terminate the employment. The lower court held the employer could terminate the employment. in Avineshwar Sawhney v. In certain cases. the appellate court reversed the decision and held the termination wrongful. accepted by the court. before proceeding to terminate. The primary contention of employee. however.

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