Can an employee be discharged for 75% of permanent disablement due to an accident outside of employment?

Dear Experts,

Can an employee be discharged for 75% of permanent disablement due to an accident outside of employment? If so, what formalities must be complied with?

There is no question of payment of any compensation since the accident happened not while on duty or in connection with employment. A total permanent disability will come under section 2(oo)(c) of the Industrial Disputes Act. As such, it is not retrenchment attracting formalities as laid down in section 25F of the Act, which says that no employee shall be retrenched without giving notice of one month and paying compensation at the rate of 15 days' salary for every year of service. But even if the employee has not completed the required five years of service, gratuity should be paid, which is equal to 15 days' salary for every year of service.

Thank you very much, Shri T K Madhu sir. Your views on this matter would help us to move further. We will go by Sec 2(oo)(c) of the ID Act. In fact, the employee will be paid compensation considering his remaining period of service, which is less than 10 years.

V. Sridhar

Ok, fine, do it as an employee benefit from the company. Obviously, if your gratuity scheme is linked to the Death Cum Gratuity Scheme of LIC, he will get the gratuity projected to his total service till his superannuation.