Termination process because of lack of business/cost cutting under the labour act?

Dear All,
Please let me know the process of termination because of lack of business/cost cutting or poor performance of employees under the labour act. It would be help full for me to get reply at the earliest.
Thank you

In order correctly reply your query, it is necessary to know the total number of employees you engage as on date.

Dear JiJiD
To give you appropriate advice following inputs are require,
1. Are you a factory or Commercial establishment?
2. How many employees are employed in your organisation?
3. Category wise employee details.
4. How many employees from each category you wish to reduce on account of cost cutting and how many on account of performance?
5. What is the type of establishment?
6. Which type of business you are in? If its a factory what is the product?

Dear Sir,
You have to take into consideration a few factors for retrenching the employees, first of all whether it is a mfg co or a services company. What is the strength of the company, if it is mfg and strength of workers exceeds 100, you need to seek Govt permission prior to retrenchment. If not, then you need to put up a seniority list of all the workers atleast for 8 days then you can resort to retrenchment on the principle of 'last come first go' ie the employee who joined last will go first and so on. Then, you need to compute the retrenchment compensation which is 15 days salary per completed year of service and one months notice pay at the time of retrenchment i.e. simultaneously. These are the provisions of the Industrial Disputes Act, 1947.
As regards poor performance of employees you have to take disciplinary action and if proved in the enquiry, then only you can terminate them after considering their past record and depending on gravity of misconducts.

Hi,
Here, I am mentioning the processes involved in termination of an employee. When an employee puts his papers, he has to serve his notice period depending on company's policy. Say he put his paper on 15th April so he has to serve the notice till 15th May. After 15th May or after the employee leaves the organization, the formalities involved in his exit takes place. The company processes full and final settlement for that employee. Under the F&F the company makes all the adjustments for the payout that is if there is any pending salary or deductions, leaves to be encashed, or any other benefits to be included in the F&F. F&F includes all the formalities at the exit of an employee.
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