What is the procedure for dismissing an employee legally in India?
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Below is a comprehensive legal analysis based on Indian law for your question.
Dismissing an employee in India must follow principles of natural justice and the governing labour law. Under the Code on Social Security, 2020 and the Industrial Relations Code, 2020 (which replace the Industrial Disputes Act), an employee in an 'industrial establishment' cannot be retrenched without proper notice, retrenchment compensation (15 days' average pay per completed year) and, where applicable, prior permission of the appropriate government under Section 25. A dismissal for misconduct must follow a domestic enquiry: a charge sheet, opportunity to respond, and a fair inquiry. Wrongful termination can be challenged before the Labour Court.
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