The Labor Department has full authority to conduct dispute hearings. First, you need to review the conditions in the worker/employee's appointment letter to see if it includes provisions for termination in case of failure to meet sales-related targets.
Check your establishment's standing orders to see the provisions for removing workers or any other employee, such as conducting an internal inquiry, and ensure you have followed those provisions. Attend the Labor Department's proceedings and clearly present your stance on the points they have raised.
If the employees have consistently disregarded the instructions given by you, you have the full right to terminate them.
From India, Pune
2Check your establishment's standing orders to see the provisions for removing workers or any other employee, such as conducting an internal inquiry, and ensure you have followed those provisions. Attend the Labor Department's proceedings and clearly present your stance on the points they have raised.
If the employees have consistently disregarded the instructions given by you, you have the full right to terminate them.
From India, Pune
You need to take this up with a labor lawyer or at lease a very good labour consultant (not just ones who can only file returns)
If you have evidence that she was give warning and notice of the hearing and she didnt attend, you have a stronger case. But be prepared for the matter going to court
If you have a ICC under prevention of sexual harassment law, then have the matters recorded of false complaints as it is an offence under the law. Take the help of experts
From India, Mumbai
If you have evidence that she was give warning and notice of the hearing and she didnt attend, you have a stronger case. But be prepared for the matter going to court
If you have a ICC under prevention of sexual harassment law, then have the matters recorded of false complaints as it is an offence under the law. Take the help of experts
From India, Mumbai
What you missed as other experts pointed out is (1) Process of Domestic Inquiry (2) And on the findings of the DI being 'guilty' she should have been suspended. And then charge sheeted, obtaining Show Cause Notice then 'termination'. All these process should be supported by undisputed records & documents. But in the absence of these process you have resorted to 'termination' which no doubt will be challenged including labour court/HC. The conciliation likely to order to reinstate the employee in the absence of DI. You have to face it with strong legal support. Entrust the case to an advocate specialising in labour disputes. This is the only option. Another option is negotiate with the employee try to settle by obtaining her resignation paying some money so that you can avoid further legal battle.
From India, Bangalore
From India, Bangalore
From the details provided we need to focus on the following Key questions:.
1. Does Office Staff Fall Under Labor Laws?
It depends on whether the employee is classified as a "workman" under the Industrial Disputes Act, 1947 (IDA).
Workmen (Covered under the IDA): Includes employees engaged in manual, unskilled, skilled, technical, operational, or clerical work.
Non-Workmen (Not Covered): Supervisory or managerial employees earning above ₹10,000 per month.
Since the employee was in the sales department, the key question is:
Did she perform core sales tasks (like meeting clients, making calls, closing deals, etc.)? → Likely a "workman."
Did she hold a supervisory/managerial role (like managing teams, setting targets)? → Not a "workman."
If she falls under "workman," she can approach the labor department.
2. Key Legal Issues & Employer Rights
Since the employee has approached the Labor Department, the case might be treated as an "illegal termination" or "wrongful dismissal" under Section 25F of the Industrial Disputes Act, 1947, if:
She worked for more than 240 days in a year (continuous service).
She was dismissed without proper notice, charge sheet, or domestic inquiry.
However, if proper memos and warnings were issued, the termination is justified.
3. What You Should Do Before the Hearing
Prepare Evidence:
Copies of all memos, emails, and warnings given to her.
Performance reviews and proof of poor performance.
Record of her refusal to acknowledge warnings or the termination letter.
Proof of full & final settlement (including the one-month compensation offered).
Appointment letter & job description (to establish she wasnt a "workman").
Check Legal Compliance:
Ensure termination was done as per company policy and IDA provisions.
If she was a workman, ideally, there should have been a domestic inquiry before dismissal.
If her role was non-workman, the Shops and Establishment Act (State-specific) may apply.
Engage a Legal Representative:
If youre unsure about compliance, consider consulting a labor law advocate before the hearing.
4. At the Labor Office Hearing
Be professional and present all documents showing due process was followed.
If the officer suggests reinstatement, argue that her performance and conduct justify the dismissal.
If compensation is suggested, negotiate based on what was already offered.
If an agreement isnt reached, the matter may move to the Labor Court.
5. Possible Outcomes
🔹 Best case: The officer finds termination justified, then there will be No action.
🔹 Compromise: The company agrees to pay a small compensation for a clean closure.
🔹 Worst case: The matter goes to Labor Court, meaning a longer process but winnable with evidence.
We can conclude the following:
Check if she qualifies as a workman under the IDA.
Gather all documentary proof of poor performance and warnings.
Attend the hearing with proper representation and be open to reasonable settlement discussions.
From India, Mumbai
1. Does Office Staff Fall Under Labor Laws?
It depends on whether the employee is classified as a "workman" under the Industrial Disputes Act, 1947 (IDA).
Workmen (Covered under the IDA): Includes employees engaged in manual, unskilled, skilled, technical, operational, or clerical work.
Non-Workmen (Not Covered): Supervisory or managerial employees earning above ₹10,000 per month.
Since the employee was in the sales department, the key question is:
Did she perform core sales tasks (like meeting clients, making calls, closing deals, etc.)? → Likely a "workman."
Did she hold a supervisory/managerial role (like managing teams, setting targets)? → Not a "workman."
If she falls under "workman," she can approach the labor department.
2. Key Legal Issues & Employer Rights
Since the employee has approached the Labor Department, the case might be treated as an "illegal termination" or "wrongful dismissal" under Section 25F of the Industrial Disputes Act, 1947, if:
She worked for more than 240 days in a year (continuous service).
She was dismissed without proper notice, charge sheet, or domestic inquiry.
However, if proper memos and warnings were issued, the termination is justified.
3. What You Should Do Before the Hearing
Prepare Evidence:
Copies of all memos, emails, and warnings given to her.
Performance reviews and proof of poor performance.
Record of her refusal to acknowledge warnings or the termination letter.
Proof of full & final settlement (including the one-month compensation offered).
Appointment letter & job description (to establish she wasnt a "workman").
Check Legal Compliance:
Ensure termination was done as per company policy and IDA provisions.
If she was a workman, ideally, there should have been a domestic inquiry before dismissal.
If her role was non-workman, the Shops and Establishment Act (State-specific) may apply.
Engage a Legal Representative:
If youre unsure about compliance, consider consulting a labor law advocate before the hearing.
4. At the Labor Office Hearing
Be professional and present all documents showing due process was followed.
If the officer suggests reinstatement, argue that her performance and conduct justify the dismissal.
If compensation is suggested, negotiate based on what was already offered.
If an agreement isnt reached, the matter may move to the Labor Court.
5. Possible Outcomes
🔹 Best case: The officer finds termination justified, then there will be No action.
🔹 Compromise: The company agrees to pay a small compensation for a clean closure.
🔹 Worst case: The matter goes to Labor Court, meaning a longer process but winnable with evidence.
We can conclude the following:
Check if she qualifies as a workman under the IDA.
Gather all documentary proof of poor performance and warnings.
Attend the hearing with proper representation and be open to reasonable settlement discussions.
From India, Mumbai
Verify:
You mentioned that the dismissed employee was office staff in the sales department.
In India, labour laws (e.g., Industrial Disputes Act, 1947) generally apply to workmen, not managerial/supervisory employees.
However, some sales employees may qualify as workmen if their job was non-managerial and non-supervisory.
If she was in a purely sales/clerical role, she might be eligible to file a complaint under the Labour Department.
Review :
Before attending the hearing, gather all evidence to justify the dismissal:
✅ Appointment Letter Clearly defining her role & employment terms.
✅ Performance Memos & Emails Proof that she was warned multiple times.
✅ Dismissal Letter & Compensation Proof If you tried to give her notice and compensation.
✅ Performance Reports Showing how her poor performance affected the company.
✅ Exit Process Details Any record of discussions held during termination.
Key Point: If she refused to acknowledge the dismissal letter, document how you attempted to serve it (email, registered post, etc.).
Understand Labour rule :
The Labour Department first acts as a mediator between the employer and employee.
Their goal is to resolve disputes amicably before referring them to higher legal authorities.
The hearing is an opportunity for you to present your case before any further action is taken.
Prepare for Hearing:
Be Professional & Stick to Facts Do not engage emotionally; focus on documented facts.
🔹 Clarify That Due Process Was Followed Show evidence of warnings, memos, and termination notice.
🔹 Mention Compensation Offer Since you offered one month's salary as per company policy.
🔹 Check If Settlement Is an Option Sometimes, the labour officer may suggest a financial settlement.
Seek Leegal Advise if needed:
If the Labour Officer insists on reinstatement or compensation, consult a labour lawyer.
If the employee was a managerial-level staff, you may argue that she is not covered under the Labour Act and should go to the civil court, not the Labour Office.
From India, Bengaluru
You mentioned that the dismissed employee was office staff in the sales department.
In India, labour laws (e.g., Industrial Disputes Act, 1947) generally apply to workmen, not managerial/supervisory employees.
However, some sales employees may qualify as workmen if their job was non-managerial and non-supervisory.
If she was in a purely sales/clerical role, she might be eligible to file a complaint under the Labour Department.
Review :
Before attending the hearing, gather all evidence to justify the dismissal:
✅ Appointment Letter Clearly defining her role & employment terms.
✅ Performance Memos & Emails Proof that she was warned multiple times.
✅ Dismissal Letter & Compensation Proof If you tried to give her notice and compensation.
✅ Performance Reports Showing how her poor performance affected the company.
✅ Exit Process Details Any record of discussions held during termination.
Key Point: If she refused to acknowledge the dismissal letter, document how you attempted to serve it (email, registered post, etc.).
Understand Labour rule :
The Labour Department first acts as a mediator between the employer and employee.
Their goal is to resolve disputes amicably before referring them to higher legal authorities.
The hearing is an opportunity for you to present your case before any further action is taken.
Prepare for Hearing:
Be Professional & Stick to Facts Do not engage emotionally; focus on documented facts.
🔹 Clarify That Due Process Was Followed Show evidence of warnings, memos, and termination notice.
🔹 Mention Compensation Offer Since you offered one month's salary as per company policy.
🔹 Check If Settlement Is an Option Sometimes, the labour officer may suggest a financial settlement.
Seek Leegal Advise if needed:
If the Labour Officer insists on reinstatement or compensation, consult a labour lawyer.
If the employee was a managerial-level staff, you may argue that she is not covered under the Labour Act and should go to the civil court, not the Labour Office.
From India, Bengaluru
Dear Mr.Shah,
Had similar issues when we terminated number of employees.
You have to be sure that your termination is as per the T&C of appointment letter.
If such T&C are not mentioned then notice/ salary in lieu of the notice period is to be given as per governing Act.
If have taken care to adhere to the T&C then there is no cause of worry.
My suggestion will be to reply by speed post to the notice but avoid going to attend any hearing at Lab Dept.
Lab Dept will try to pressurise you to accept demands put up by the ex employee.
In case the ex employee goes to Labour Court , then fight it out in the court.
You may contact me on 919213921375 for any further clarification , free of cost.
Col. Suresh Rathi
From India, Delhi
Had similar issues when we terminated number of employees.
You have to be sure that your termination is as per the T&C of appointment letter.
If such T&C are not mentioned then notice/ salary in lieu of the notice period is to be given as per governing Act.
If have taken care to adhere to the T&C then there is no cause of worry.
My suggestion will be to reply by speed post to the notice but avoid going to attend any hearing at Lab Dept.
Lab Dept will try to pressurise you to accept demands put up by the ex employee.
In case the ex employee goes to Labour Court , then fight it out in the court.
You may contact me on 919213921375 for any further clarification , free of cost.
Col. Suresh Rathi
From India, Delhi
Proceedings in Labour Office are conciliation proceedings under the Industrial Disputes Act 1947. If no settlement is arrived at between the employee and the employer, the conciliation officer submits its failure report to the state government and the dispute is referred to a Labour Court. At this stage, it is not important to discuss whether she is a "workman" or not, but the employer should contest the case and file its written statement. Please note that the Labour Court has jurisdiction to decide the dispute whether any employee is a "workman" or not. Therefore, all the disputes would be decided by the Labour Court. My suggestion is that the employer should contest the case vigorously.
- S. K. Mittal
Industrial & Labour Lawyer
9319956443
From India, Faridabad
- S. K. Mittal
Industrial & Labour Lawyer
9319956443
From India, Faridabad
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