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A matter of termination

  • Published at 06:00 pm January 30th, 2019
Labour Law

What does the law say about employee dismissals?

The world is a stage and we are all actors as stated by the great William Shakespeare. True that we are all actors and are acting to earn our livelihood. But while working, sometimes we face termination either from our end or from our employer -- which is different for probationary and permanent workers.

There is no restriction in terminating an employee who is on probation -- the employer shall neither be obliged to give any notice nor be obliged to pay in lieu of notice. An employee shall become permanent if he/she has completed the probation period successfully. 

The probation period of an employee whose function is of clerical nature shall usually be six months, and for other employees, such a period shall be three months, provided that in the case of skilled employees, the period of probation may be extended for a further period of three months if for any reason the quality of his work within the first three months of his probation is not possible to ascertain. 

The employment of a permanent employee may be terminated by giving him/her a notice in writing, of 120 days and of a temporary employee, a notice in writing, of 30 days. If he/she is a monthly-rated employee or if the employer intends to terminate the employee without any notice, he/she may do so by paying the employee salary for the period of notice in lieu of the notice.

Upon termination of the employee, some benefits have to be provided by the organization:

• In case of a permanent employee, compensation at the rate of 30 days salary for every completed year of service or gratuity, if any, whichever is higher

• If the organization has provident fund, and the permanent employee is a member of the fund, then the permanent employee shall be entitled to the provident fund as per the provident fund policy

• Payment in lieu of the un-availed earned leave (if any) at the time of the termination of the employee which shall be paid on a pro-rata basis

• Employees, who have completed one year of their employment continuously, shall be provided two festival bonuses every year. Therefore, such an employee shall be entitled to two months basic salary and festival bonus in a year payable in two installments. If any such bonus is not paid as of yet, then such has to be paid to him upon his termination

• Any other benefits to which the employee is entitled to as per his employment contract

An employee can be dismissed without any prior notice or pay in lieu thereof if the employee is convicted for any criminal offense or found guilty of misconduct. Thus, while being part of the stage show, it is prudent to know and understand the trades of the game and act skillfully both from the part of the employer and the employee to avoid any unnecessary hurdles. 

Sabrina Zarin is a Partner in FM Associates and an Advocate of the Supreme Court of Bangladesh.

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