Garments Employee Termination Policy and Procedures

26.5.16

Employee Termination

This employee termination policy and procedures is applicable for all employees of Auto Group and there will be different policies and procedures applicable for different categories of the employees. To ensure that, all the employees are aware of the termination policies and the consequences of any kind of misconducts and of the processes according to which they will be removed from service if required. As per the law there are some laws which are to be maintain during the time of employee separation to make sure those requirement are properly being followed the employee termination policy has been formulated.

Employee Termination Policy

Employee Termination Policies for staff –

Every staff is given probation period at the time of joining which is called ‘Introductory Period’ and this could last for anything in between 3 to 6 months. For some exceptionally poor performers the time could be extended to farther 3 months, which is up to 9 months in total. If after the evaluation the person is not found to be performing the person can be asked to leave within 2 weeks’ notice or on that very date but with salary of additional of 2 weeks as compensation along with salary up to the day of service.
If the employee found to not to be working as per expectation during the probation period then it is not required for the company to wait up to end of the probation period for evaluation. The company can think of terminating the employment of that person at any time during the probation period and can do so giving a 2 weeks’ notice or on that very date but with salary of additional of 2 weeks as compensation along with salary up to the day of service.
If an employee is willing to leave the company during the probation period then he/she is expected to give 2 weeks’ notice before departure or the person is supposed to surrender or forfeit 2 weeks’ pay on leaving that very day
It will depend upon the management that, in certain cases the management may choose to allow a person to give shorter resignation time
Once an employee is confirmed as a regular employee, he/she will be expected to provide 1 months’ notice in his/her resignation in most cases; however, for employees holding the rank of senior manager and above, the requirement would be to provide a notice of 2 months and for general manager and above the requirement would be to provide a notice of 3 months. If the employee provides shorter notice, he/she will be expected to forfeit the remuneration for the periods by which he/she shortens his/her notice period.
The company will also give the same number of month notice to the respective categories of staff meaning that if the company is will in got terminate an employee up to the level of senior manager then they would give one month’s notice or they would provide 1 month’s salary in addition to the salary up to the day worked.
The company may decide to terminate an employee for reason that could be range from redundancy (the position is no longer required or the person’s performance level not up to expectation or for any gross misconduct)
However, as per company employee termination policy and procedures, if an employee is proven beyond doubt to be guilty of any “gross misconduct” as defined in the company employee termination policy, he/she will be expected to resign immediately without any additional financial compensation on notice time.
At the time of separation, through whatever means it may be, an employee will be entitled to receive whatever company benefits that may have accrued on his/her account since his/her joining, this will include accumulated earned leave benefits of even the year in which the person is at the moment including any pending due from the previous year plus any addition provident fund or gratuity if those policies are already in place in company at that time.
When a person gives his resignation with the notice of anything between 1 to 3 months depending on their designation and if the management would like to leave the person sooner, then the management will compensate the person by those days by which they would shorten the notice period that the person would like to give willingly.
One cannot claim back however, any minor amount deducted from his/her salary for the purpose of welfare fund or emergency staff and worker relief fund or for any social cause.
If the company finds an employee guilty beyond doubt of financial embezzlement, the discrepancy amount will be adjusted from his/her accrued terminal benefits. If there is any residual benefit, the company will provide the employee with that. If the company finds that, it still has an outstanding receivable from the employee after adjusting against terminal benefits; it would take all possible legal actions to extract the remainder payment from him/her.
If the person resign willingly then the person is expected to return any loans or advances that the person has taken form the company
If a person is terminated and has loan or advance with the company in that case the company will have separate agreement in which company will provide him with certain period of time of maximum 6 moths between 2 month to 6 moths depending on the size of the loan to repay it to the company.

Employee Termination Policies for workers –

If worker have to be terminated then he/she will have to be given 2 months’ notice or 2 month’s salary as if the person is expected on the very day on which the termination is being issued. An addition the worker will also be provided with all pending earned leave that have accrued up to that day of service, including any pending due of the leave from the previous year and any other financial cash perks and benefits that may have accrued in the worker’s name.
A worker can be dismissed if found to have indulge in activities as classified as gross misconduct which include repeated cases of misbehavior with supervisor, repeated violation of company policies on presence and punctuality. If they are found to be mobilizing people or instigating any kind of uprising or causing any sort of rebellious activity within the company premises. At the time of dismissal the person will be told to leave the company and will be provided with salary up to that day of service only and the terminal benefits that may have been accrued in his or her name.
Some workers who are required to be dismissed could be given the opportunity to rather hand in a resignation where they would apply for permission to leave immediately and that the management grants them a shorter notice time. In that case management will approve that and allow that person to leave with their personal benefits up to that point.
If a worker has any outstanding lone then that needs to be cleared before a person give in the resignation and leave. If there is outstanding loan to a worker who is being terminated from the company’s side, then that outstanding loan will be adjusted against any accrued financial benefit.

Employee Termination Policy and Procedures

Regulations and procedures for the resignation of staff –

If a person has to resign then the person will give in the resignation letter to his department head and also a copy to HR Department. Department head will inform HR whether he/she is going to approve the resignation or not and based upon that HR Department will accept or decline the resignation. HR Department will call the person for counseling and will try to underhand why the person is wanting to resign and will also get the person to fill out exit interview form. If the person is not giving adequate
notice time then it will depend upon the Director responsible for that division and HR Director to jointly decide to whether or not to a shorter resignation time or to extract financial compensation.

Regulations and procedures for termination of staff–

The department head or the direct reporting supervisor will write an application to the director responsible for that respective division and to the HR director giving reasons for why that specific person require to be terminated. Then the person who has been targeted for the termination would be called in and interviewed about the subject and based upon the discussion decision will be taken at the management level whether or not to proceed with the termination. However, in the case of redundancy if the position has been made obsolete then in that case a person doesn’t need to call in for separate discussion. A list will be prepared by the HR Department based on the inputs from the Managing Director and from the other division heads up to which position have become redundant and will identify the person that needs to be removed. If the decision is finalized that the person will be terminated then the HR Department will issue the termination letter and will also do the calculation of the settlement and forward to the Accounts Department who will finally disburse the required amount.

Regulation and procedures for instructed resignation of workers –

If a worker is required to leave the company that the company wishes to not tarnish the person’s work record then he/she will be given the opportunity to hand in resignation. On receiving the resignation the HR Department and the Production Director will approve the shortening of the notice period the person can be allowed to be receive terminal benefits up to that point only.

Regulation and procedures for termination of workers –

The production management should recommend that the worker is supposed to be terminated and recommendation and ratification by the Production Director. Then the Production Director will transfer the information to the HR Department. HR Department will be calculating the due amounts to the person and forwarding to the Accounts Department and they will pay the person in presence of Admin and Welfare officials. If a worker is terminated immediately and the Production Director may choose not to allow him/her to come in factory on the following day; that the worker will be continued to be paid salary and benefit up to the date on which the settlement is done by the HR Department.

If a worker has committed any kind of misconduct which is less than causing direct disruption of production or destruction of company property in that case the worker will be provided with the show cause notice by the Admin Department giving 7 days’ time to give a written explanation of such action. Admin Department will ensure the worker give that letter within 7 days and within 2 days of receiving the letter the hearing will be arranged where representative from the HR and Admin Departments, floor management and aggrieved party will be present. After the discussion, the decision will be taken whether the worker will be allowed to work or not. The worker, who will be allowed to continue, will be informed that if similar incident is reported about the person in the future then the person will be terminated without notice and warning should be issued against him/her as well. If the decision is dismissing that person immediately then the person will be dismissed without any delay and he/she will be given salary and benefits up to that point.

If the worker has any outstanding loan that would be settled form his/her accrued benefits, if there are still outstanding loan standing after the adjustment taken place then the workers who has been terminated will be given certain time to return the money to the company. If the worker is resigning on his/her own will, then also the person will be adjusted any outstanding loan against of his/her accrued salary and benefits.

Responsible Parties:

In case of staff, the HR Department, respective department head, Senior management, Accounts Department and in some cases Managing Director will be responsible for implementing this employee termination policy and procedures
In case of workers, the HR, Accounts, Operation, Admin, Welfare and Production Departments will be responsible for implementing this employee termination policy.

Exceptions:

There could be some people, who the company would like to terminate but the company may do the favor to the person of not tarnishing his/her career record and therefore would not issue a termination letter but would offer that person to give in an opportunity to give resignation. That there could be some cases where termination benefits could be curtailed if the person has done any significant damage to the company’s good will or to the company’s property or has leaked any secrets of the company which has proven to be detrimental for the company.

Conclusion:

There will be report prepared by HR Department form all the factories and all the units, analyzing the causes why people have left, they will identify who have resigned and who have been terminated or found redundant or dismissed due to misconduct. Based on that, the Compliance Department will check weekly, to see that everybody has been given their settlement benefits properly. Welfare Department will also check whether everything has been done in these various processed fairly. Workers and Employee termination policy and procedures is very essential for any garments industries.

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