Illegal Termination From CPSU

My friend has been working in a Central public sector undertaking since last 25 years. He had joined the organisation as supervisor and risen to the post of manager by promotions. He was last promoted in 2008. In 2014, the management terminated his services by giving three months notice on the excuse of non performance. How a confirmed employee of public sector be terminated by giving three months notice without any proceedings under CDA rules of the company. Pl guide.

It is true that no employee can be sent off on the ground of poor performance without offering him an opportunity to be heard or without following a system of (transparent ) performance appraisal. By transparent, I mean appraisal with the knowledge of the appraisee and not some thing taken place in a discussion among a few managers. And it is surprising that a PSU management did it, perhaps after getting the concurrence from the Legal department and on the ground that in the case of a manager who is not under the protective cover of Industrial Disputes Act, no formal procedure is required to be followed. But while discharging the management should have followed at least the basic principles of natural justice. Since the kind of reasons shown, ie, poor performance, will cause stigma, the employee, manager, whoever it may be, will be justified if he files a case against the organisation. To repeat, since he has been working as a manager, he will not get the protection of ID Act.

Madhu.T.K

Hi,

I believe your friend must go legally and challenge the decision take by PSU against him. No matter whether he was a PSU employee or from other private sectors but an initial inquire, notice/circular must have been issued to him about his poor performance and he cant directly be terminated like this. PSU have certain guideline in this regard too and i believe he must have known about it as he has spent really a long time with this sector.

And hoping that there is nothing left sharing with us about this case but I have a strong feeling like there is something which you have not shared with us, therefore, i advise you to speak to your friend again and get the complete details else he can post his query himself with complete details.

Second, under the PSU personnel policies with clause of "Conduct, Discipline & Appeal Rules" he can file his appeal and challenge the decision if he wish to take that chance as I said above, but for this he must consult any respective legal consultant/lawyer.

I agree with the above opinion and suggestions.
This is a good case for taking up the cause; and the ex-employee deserves to be dealt with in a fair manner.
It is not necessary to hire a lawyer (though desirable); and the members here are competent enough to help the individual if more details and information are provided.
Warm regards.

I strongly feel that there must be some other reasons which are known to your friend and the PSU management. Otherwise no company PSU or Private takes this type of action with a managerwho has been working with them for 25 years.

hi,
Please ask with your friend about all points related to termination.No company will have take this type of steps to take extra burden of compliances.It may be there some other reason behind it.

I appreciate and thank all of you for your suggestions. However, I can assure you that my friend has not hidden anything in this regard. It is also very surprising to him and also to me how a PSU management can do such a thing to an employee who has been working for last 25 years. Further, there is CDA rules of the company which I have also read, definition of which also includes 'loss of performance' and for any such allegations including any other allegations whatsoever, the termination, can only happen after a detailed laid down procedure and enquiry is held by a committee in this regard. Termination can only happen after detailed showcause, chargesheet, enquiry by committee etc. If CMD of the organisation do not follow such rules and thinks himself an arbitrator posing himself as 'proprietor of the concern' and converting aPSU to a proprietoriship concern, what a poor employee can do except that he can only plead to concerned ministry and to the court. The act done by CMD of the organisation is totally illegal. I have now personally read the case and convinced that natural justice has been denied to him and such an act is ultra vires to Article 14 of the constitution.