Termination of employees without notice

If any enterprise falls under Shops and establishment act, can it terminate its employee without notice?

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Dear Sir/madam,

Shops and establishment act is a local law, meaning thereby that it varies from state to state. However, almost in every state – the statute calls for a mandatory notice period of the employee by the employer as a notification of the cause of such termination as well as the time period to clear all his dues if any. Now, this notice period varies as per different state laws. For eg. Delhi law[1] considers notice mandatory for an employee who has worked for more than three months. The state law in Andhra Pradesh also states a similar mandate. In Bombay this notice period gets reduced to a 14 day time period[2]. While in probation, there might not be a mandatory notice period at all. A lot of it depends on the number of months/years of service period also.

Most of it also depends upon the terms and conditions of your employment contract, the one that you signed while joining the job.

If such notice period is not served duly as per the mandate of the law then One Month's salary in lieu of such Notice is considered necessary by the employer.

Having said all of the above, there is a ground of “Misconduct” by the employee that acts as a shield for the employer and prevents him from the mandate of the law. Thereby, misconduct of the employee abstains the employer from serving the employee a one month notice period, in turn terminating his services without stating any cause in writing.

This “Misconduct” generally contains :

  • absence from service without sufficient reasons for seven days
  • causing damage to employer’s property
  • abetting a strike
  • Leaking confidential documents
  • Breaching the contract

If, still you consider that your termination from the services by the employer was wrong and reasons not justified then you can very well file :-  (i) a civil suit under the concerned court of law for the breach of the contract between you and your employer (ii) another suit in the labour court of your district for violating the provisions of your state’s Shop & Establishment act.

The limitation time period for doing so, is generally 3 years from the date when the cause of action arose. For starters, send your employer a legal notice to this effect through a lawyer informing him about your concern and your rightful claim over the last month’s salary + other issues.

Incase you are facing any difficulty pursuing the above advice or want any help in filing the case. Please follow the link below



[1] section 30 of the Delhi Shops and Establishments Act, 1954

[2] Section 66 of the Bombay Shops and Establishments Act, 1948

Answered on March 2, 2017.
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