GRIEVANCES HANDLING:

INTRODUCTION
Every employee has certain expectations which he thinks must be fulfilled by the organisation he is working for. When the organisation fails to do this, he develops a feeling of discontent or dissatisfaction. When an employee feels that something is unfair in the organisation, he is said to have a grievance. According to Jucius, a grievance is any discontent or dissatisfaction, whether expressed or not, whether valid or not, arising out of anything connected with the company which an employee thinks, believes or even feels to be unfair, unjust or inequitable.

FEATURES
If we analyse this definition, some noticeable features emerge clearly: 1. A grievance refers to any form of discontent or dissatisfaction with any aspect of the organisation. 2. The dissatisfaction must arise out of employment and not due to personal or family problems. 3. The discontent can arise out of real or imaginary reasons. When the employee feels that injustice has been done to him, he has a grievance. The reasons for such a feeling may be valid or invalid, legitimate or irrational, justifiable or ridiculous. 4. The discontent may be voiced or unvoiced. But it must find expression in some form. However, discontent per se is not a grievance. Initially, the employee may complain orally or in writing. If this is not looked into promptly, the employee feels a sense of lack of justice. Now the discontent grows and takes the shape of a grievance. 5. Broadly speaking, thus, a grievance is traceable to perceived non-fulfilment of ones expectations from the organisation.

FORMS OF GRIEVANCES
A grievance may take any one of the following forms: (a) factual, (b) imaginary, (c) disguised

1. Factual
A factual grievance arises when legitimate needs of employees remain unfulfilled, e.g., wage hike has been agreed but not implemented citing various reasons.

2. Imaginary

When an employees dissatisfaction is not because of any valid reason but because of a wrong perception, wrong attitude or wrong information he has. Such a situation may create an imaginary grievance. Though management is not at fault in such instances, still it has to clear the fog immediately.

3. Disguised
An employee may have dissatisfaction for reasons that are unknown to him. If he/ she are under pressure from family, friends, relatives, neighbours, he/she may reach the work spot with a heavy heart. If a new recruit gets a new table and almirah, this may become an eyesore to other employees who have not been treated likewise previously

CAUSES
Grievances may occur for a number of reasons:

1. Economic
Wage fixation, overtime, bonus, wage revision, etc. Employees may feel that they are paid less when compared to others.

2. Work environment
Poor physical conditions of workplace, tight production norms, defective tools and equipment, poor quality of materials, unfair rules, lack of recognition, etc.

3. Supervision
This Relates to the attitudes of the supervisor towards the employee such as perceived notions of bias, favouritism, nepotism, caste affiliations, regional feelings, etc.

4. Work group
Employee is unable to adjust with his colleagues; suffers from feelings of neglect, victimisation and becomes an object of ridicule and humiliation, etc.

5. Miscellaneous
These include issues relating to certain violations in respect of promotions, safety methods, transfer, disciplinary rules, fines, granting leave, medical facilities, etc

ADVANTAGES OF HAVING A GRIEVANCE HANDLING PROCEDURE

The following are some of the distinct advantages of having a grievances handling procedure: 1. The management can know the employees feelings and opinions about the companys policies and practices. It can feel the pulse of the employees. 2. With the existence of a grievance handling procedure, the employee gets a chance to ventilate his feelings. He can let off steam through an official channel. Certain problems of workers cannot be solved by first line supervisors, for these supervisors lack the expertise that the top management has, by virtue of their professional knowledge and experience. 3. It keeps a check on the supervisors attitude and behaviour towards their subordinates. They are compelled to listen to subordinates patiently and sympathetically. 4. The morale of the employees will be high with the existence of proper grievance handling procedure. Employees can get their grievances redressed in a just manner.

GUIDELINES FOR HANDLING GRIEVANCES

The following guidelines may help a supervisor while dealing with grievances. He need not follow all these steps in every case. It is sufficient to keep these views in mind while handling grievances (W. Baer, 1970).
1. Treat each case as important and get the grievance in writing.

2. Talk to the employee directly. Encourage him to speak the truth. Give him a patient hearing. 3. Discuss in a private place. Ensure confidentiality, if necessary. 4. Handle each case within a time frame 5. Examine company provisions in each case. Identify violations, if any. Do not hold back the remedy if the company is wrong. Inform your superior about all grievances. 6. Get all relevant facts about the grievance. Examine the personal record of the aggrieved worker. See whether any witnesses are available. Visit the work area. The idea is to find where things have gone wrong and who is at fault. 7. Gather information from the union representative, what he has to say, what he wants, etc. Give short replies, uncovering the truth as well as provisions. Treat him properly. 8. Control your emotions, your remarks and behaviour.

9. Maintain proper records and follow up the action taken in each case. 10. Be proactive, if possible. Companies like VSP, NALCO actually invite workers to ventilate their grievances freely, listen to the other side patiently, explain the reasons why the problems arose and redress the grievances promptly.

Grievance Redressal
Grievance Redressal: There are 2 types of Grievance Redressal,
1. Formal Grievance Redressal 2. Informal Grievance Redressal.

Grievance Procedure / the Formal Grievance Redressal:

Step by step process an employee must follow to get his or her complaint addressed satisfactorily. In this process, the formal (written) complaint moves from one level of authority (of the firm and the union) to the next higher level. Grievance procedures are typically included in union (collective bargaining) agreements. A systematic grievance procedure is best means to highlight employee dissatisfaction at various levels. Management, to this end, must encourage employees to use it whenever they have anything to say.

Model Grievance Procedure & the Steps involved in a Grievance Procedure:

The grievance procedure mainly being a voluntary measure was adopted by the Indian Industries during the 16th Indian Labour Conference in 1958. Despite differences between organizations, the common four phase model is largely applied by all industries. The four stages of the machinery are briefly discussed here: An aggravated employee shall just present his grievance verbally in person to the officer designated and the answer should be given within 48hrs. If the worker is not satisfied with the answer, he along with one department representative will present the grievance to the departmental head. He will give his judgment in 3 days or state the reason for delay. If he is not satisfied yet, then he may be requested to refer the case to the grievance committee. The grievance committee will make recommendation within seven days. Management has to implement it, If even then he remains unsatisfied, he can report to the higher tier of the management for revision. If the worker is still not satisfied with the decision then the union may ask for voluntary arbitration and the decision of which will be binding on both the parties.

Informal Grievance Redressal Method:

The aggrieved employee can directly approach his shift in charge or the section head (in case of a major grievance) engage into a direct consultation and have his grievance resolved amicably in stage I itself. Therefore, he not only saves himself from a lot of time but also

mental tension and pressure, which many employees claim to have acquired during the course of a formal grievance Redressal procedure.

GRIEVANCE PROCEDURE
A grievance is a sign of employees discontent with job and its nature. An employee will have certain aspirations and expectations which he thinks must be fulfilled by the organization where he is working. When the organisation fails to satisfy the employees needs, he develops a feeling of discontent or dissatisfaction. Thus, grievance is caused due to difference between employee expectation and management practices. Beach defines grievances as any dissatisfaction or feeling of injustice in connection with ones employment situation that is brought to the notice of the management.

NEED FOR A GRIEVANCE PROCEDURE

Grievance procedure is necessary for any organisation due to the following reasons. 1. Management can feel the pulse of the employees with regard to the policies and practices of the organization 2. Employees get a chance to ventilate their feelings and let off steam through an official channel 3. Morale of the employees will be high when their grievances are redressed in a just manner 4. It keeps a check on the supervisors attitude and behaviour towards their subordinates

BENEFITS OF GRIEVANCE PROCEDURE:

According to Jackson, benefits that will accrue to both the employer and employees by adopting grievance Redressal procedures are: It encourages employees to raise concerns without fear of reprisal It provides a fair and speedy means of dealing with complaints It prevents minor disagreements developing into serious disputes It saves employers time and money as solutions are found for workplace problems It helps to build an organisational climate, based on openness and trust Enables the management to know the pulse of its employees by learning about their feelings and opinions about the policies and practices of the organization. Provides a channel to the aggrieved employees to express their grievances about various aspects of their jobs formally.

Provides clues about the behaviour and attitude of the managers and supervisors towards their subordinates. Gives an assurance to the employees about the existence of a mechanism for the prompt Redressal of their grievance. Keeps up the morale of the employees by ensuring that their grievance will be redressed in a fair and transparent manner

STEPS IN THE GRIEVANCE PROCEDURE

A. Identify grievances: Employee dissatisfaction or grievance should be identified by the management if they are not expressed. If they are ventilated, management has to promptly acknowledge them. B. Define correctly: The management has to define the problem properly and accurately after it is identified / acknowledged. C. Collect data: Complete information should be collected from all the parties relating to the grievance. Information should be classified as facts, data, opinions etc. D. Analyse and solve: The information should be analysed, alternative solutions to the problems should be developed and the best solution should be selected. E. Prompt Redressal: The grievance should be redressed by implementing the solution. F. Implement : Execute the solution G. Follow up: Implementation of the solution must be followed up at every stage in order to ensure effective and speedy implementation.

Discipline
According to Richard D. Calhoon, Discipline is the force that prompts individuals of groups to observe rules, regulations, standards and procedures deemed necessary for an organization. Discipline is the regulation and modulation of human activities to produce a controlled performance. The real purpose of discipline is quite simple. It is to encourage employees to confirm to established standards of job performance and to behave sensibly and safely at work. Discipline is essential to all organised group action.

Definition of Discipline
Websters Dictionary gives three basic meanings to the word discipline, the first being that of training that corrects, moulds, strengthens, or perfects. The second meaning is control gained by enforcing obedience and the third is punishment. By combining the first and second definitions you can say that discipline involves the conditioning or moulding of behaviour by applying rewards or you can say that discipline involves the conditioning or moulding of behaviour by applying rewards or penalties. The third meaning is narrower in that it pertains only to the act of punishing wrongdoers. Besides these broad definitions, there are others referring to organisational life in particular, for example: Discipline is a procedure that corrects or punishes a subordinate because a rule of procedure has been violated. Dessler, 2001 Discipline should be viewed as a condition within an organisation whereby Employees know what is expected of them in terms of the organisations rules, Standards and policies and what the consequences are of infractions. Rue & Byars, 1996 From the above definitions, you can find the following elements: The objective is orderly behaviour. Orderly behaviour is a group desire. Orderly behaviour assists the attainment of organisational goals When members behave appropriately as per rules, there is no need for disciplinary action. This is self discipline. When some members violate the rules and regulations, punitive actions are needed to correct them. Punishment serves two purposes: first, to directly punish an individual for an offence and secondly, to set an example for others not to violate the rules and regulations.

Those employees who observe the rules and standards are rewarded by praise, by security and often by advancement. Those who cannot stay in line or measure up to performance standards are penalised in such a way that they can clearly learn what acceptable performance and behaviour are. Most employees recognise this system as a legitimate way to preserve order and safety and to keep everyone working towards the same organisational goals and standards. For most employees, self discipline is the best discipline. As often as not, the need to impose penalties is a fault of the management as well as of the individual worker. For that reason alone, a supervisor should resort to disciplinary action only after all else fails. Discipline should never be used as a show of authority or power on the supervisors part. Let us now distinguish the major aspects of discipline.

Negative Discipline:
Negative discipline involves force or an outward influence. It is the traditional aspect of discipline and is identified with ensuring that subordinates adhere strictly to rules, and punishment is meted out in the event of disobedience or indiscipline. As you can see, in this perspective strict penalties are levied for the violation of rules. It is, in fact, the fear of punishment that works as a deterrent in the mind of the subordinate. Approaching discipline from this kind of a perspective has been proving increasingly ineffective for various reasons.

Positive Discipline:
In this type of discipline subordinates comply with the rules not from fear of punishment, but from the desire to cooperate in achieving the common goal of the organisation. In positive discipline willingness to comply is most important. The emphasis here is on cooperative efforts to secure compliance to organisational norms. It promotes emotional satisfaction instead of emotional conflict, and the increased cooperation and coordination reduces the need for formal authority. This approach to discipline will help you to achieve both individual needs of the subordinates and organisational goals for you. It would therefore motivate your subordinates to work with zeal and fulfil their needs. Positive discipline, in other words, calls for internalisation by your subordinates of the objectives and expected norms of behaviour in your organisation. The positive concept of discipline assumes a certain degree of self-discipline.

Discipline as Self-control:
Discipline at one level means training that corrects, moulds, strengthens, or perfects the behaviour. Discipline, in this sense, refers to the development of an individual, i.e., ones efforts at self-control for the purpose of adjusting oneself to certain needs and demands. This is nothing but what you would call self-discipline. You will agree with us that it is extremely important to have this kind of self-discipline both in you and in your subordinates

for effectively and efficiently achieving your organisational objectives. Here again the emphasis is on establishing and ensuring a minimum degree of orderliness. This orderliness is obtained in the modern work context by increasing the degree and extent of compliance by subordinates. Let us examine it a little more closely.

Standing Orders
The term Standing orders refers to the rules and regulation which governs the conditions of employment of workers. They specify the duties and responsibilities of both employers and employees. Through standing orders, the condition of employment are sought to be regularized, paving the way for industrial peace and harmony. The Industrial Employment (standing orders) Act of 1946 provides for the framing of standing orders in all industrial undertaking employing 100 or more workers. As per the provisions of the Act, employers have to formulate standing orders in consultation with workers and submit to a certifying officer. The matters to be highlighted there in are: (a) Classification of employees, (b) Hours of work, holidays, payday, wage rates, (c) Shift working, (d) Attendance and late coming, (e) Leave rules, (f) Temporary stoppages of work, (g) Termination, suspension and disciplinary actions, etc. The certified copies of the standing orders must be displayed prominently inside the undertaking. Once certified, the standing orders are binding on the employer and the employees. Violation of condition mentioned therein invite penalties. The Labour Commissioner (Deputy Labour Commissioner, Regional Labour Commissioner) exercise the powers of certifying officer and in that capacity has all the power of a civil court. The Act has been amended a number of times, the latest in 1982. The 1982 Act provides for the payment of a subsistence allowance to workers who are placed under suspension. The prerequisite for the development and maintenance of healthy relationship between the employers and the wage earners is the existence of satisfactory employment and working conditions. In their absence, industrial strikes, bickering and bitterness crop up. These can be held check if conditions of employment and work are improved. In this context, standing orders play a significant role. They refer to the rules and regulations which govern the conditions of employment of workers. They specify the duties and responsibilities on the pat of both the employer and the employees. They make both of them conscious of their own limitations as they require, on the one hand, the employers to follow certain specified rules and procedures as laid down regarding working hours, pay days, holidays granting of leave to the employees, temporary stoppages of work, termination f employment, suspension or dismissal in certain conditions. On the other hand, they require that the employees should

adhere to the rule and regulations mentioned in the standing orders and create an attitude among both the parties which is more favourable in achieving industrial harmony.

Object of standing orders

The purpose of having standing orders at the plant level is to regulate industrial relations. These define with sufficient precision the conditions of employment under the employers and hold them liable to make the said conditions known to workmen employed by them. These orders regulate the conditions of employment, discharge, grievances, misconduct, disciplinary actions, etc., of the workmen employed in industrial relations. Unsolved grievances can become industrial disputes and disciplinary action in the wake of disciplinary proceedings against misconduct may lead to industrial unrest In regard to the standing orders, the obligation of the employers is: 1. To submit draft standing orders with the required information to the certifying officer for certification within the time limit set in the Act. 2. To act in conformity with the certifying standing orders in the day-to-day dealings with the workmen; 3. Modify certified standing orders only with the approval of the certifying officer; 4. Post prominently the text of the certified standing orders in English or any other language understood by the majority of the workmen near the entrance through which the majority of workers enter the establishment and also in all departments where workmen are employed. The obligations of the workmen are: (i) to work in conformity with the certified standing orders, and (ii) to comply with the provision of the Act the mode standing orders in regard to modification and interpretation of these The responsibility of enforcement of standing orders lies with officers, supervisors and others entrusted with this task. Therefore, the cooperation and compliance of employees and officials of unions is essential for the maintenance of cordial and industrial relations between labours and management. The faulty or inadequate application and administration of the standing orders may lead to grievances and misconduct which might adversely affect the industrial relations. The industrial employment (standing orders) Act, 1946, was amended in 1982, to provide for payment of subsistence allowance to workmen who are kept under suspension, pending domestic enquiry.

Matters to be contained in the Standing Orders

Classification of the workmen: temporary, casual, apprentices Manner of intimating to workmen periods and hours of work, holidays, pay-days and wage rates Shift working Attendance and late coming Conditions of, procedure in applying for, and the authority which may grant leave and holidays Requirements to enter premises by certain gates and liability to search Closing and reopening of sections of the establishments, or temporary stoppages Suspension or dismissal for misconduct and acts and omissions which constitute misconduct

Procedure for Certification of Standing Orders

On receipt of the draft standing order, the certifying officer shall forward a copy to sent to trade union of the workmen functioning in the establishment If no such union exists, to three representatives of workmen in the establishment elected at a meeting called for the purpose A notice in the prescribed form will be given inviting objections, if any, to the draft standing orders within fifteen days of receipt of these orders. After giving to the parties an opportunity of being heard, the certifying officer shall decide whether or not any modification of the draft is necessary, and make an order in writing accordingly. In doing so, the certifying officer can adjudicate upon the fairness and reasonableness of the provisions in the drafts. The certifying officer shall thereupon certify the standing orders with or without modifications and forward the authenticated copies thereof to the employer and to the trade union or other prescribed representatives of the workmen within seven days from the date of his orders

Acts of Misconduct
The following acts or omissions on the part of a workman shall amount to misconduct; Going on an illegal strike Wilfully slowing down in performance of work Theft, fraud or dishonesty in connection with the employers business or property or the theft of property of another workman within the premises of the establishment Taking or giving bribes Habitual absence without leave or absence without leave for more than ten consecutive days Collection without the permission of the manager of any money within the premises of the establishment except as sanctioned by any law for the law for the time being in force Engaging in trade within the premises of the establishment Drunkenness, riotous, disorderly or indecent behaviour on the premises of the establishment Habitual neglect of work Habitual breach of any rules or instructions Wilful damage to work in process or to any property of the establishment Holding meeting inside the premises of the establishment without the previous permission of the manager or except in accordance with the provisions of any law for the time being in force. Disclosing to any unauthorised person any information Smoking and spitting on the premises of the establishment where it is prohibited by the employer Unauthorised possession of any lethal weapon in the establishment

INDISCIPLINE
Indiscipline refers to the absence of discipline. Indiscipline, therefore, means nonconformity to formal and informal rules and regulations. We cannot afford indiscipline as it will affect the morale, involvement and motivation of subordinates in the organisation. Indiscipline often leads to chaos, confusion, and reduces the efficiency of the organisation. It often leads to strikes, go-slows, and absenteeism, resulting in loss of production, profits and wages.

Forms of Indiscipline
Absenteeism, insubordination, violation of plant rules, gambling, incompetence, damage to machine and property, strikes, dishonesty and other forms of disloyalty lead to industrial indiscipline. These are all forms of misconduct against the management. If an act of an employee is prejudicial or likely to be prejudicial to the interests of the employer or to his reputation, it is misconduct. The act of an employee can become misconduct in the following cases: Where the act of a workman is inconsistent with the peaceful discharge of his duty towards his employer; Where the act of the employee makes it unsafe for the employer to retain him in service; Where the act of the employee is so grossly immoral that all reasonable men would not trust that employee; Where the conduct of the employee is such as to open before him ways for not discharging his duties properly; Where the conduct of the employee is such that the employer cannot rely on his faithfulness; Where the conduct of the employee is insulting and insubordinate to such a degree as to be uncomfortable with the continuance of a superior-subordinate relationship; Where the workman is abusive or he disturbs the peace at the place of his employment; and Where the employee is habitually negligent in respect of the duties for which he is engaged.

It is very difficult to lay down exhaustively as to what would constitute misconduct and indiscipline. It would depend upon the examination of facts. Some of the acts of misconduct are mentioned in the Model Standing Orders as a part of the rules made under the Industrial Employment (Standing Orders) Act of 1946. Non-performance of duty is a serious misconduct, because it is basically inconsistent with the obligations of employment. Under the act of negligence, an employee fails to give full care and attention on account of which the work becomes defective, and production suffers both in quantity and quality. It is a misconduct to cause disorder on the premises, intimidate, threaten or assault other employees and use abusive language. Preventing the entry and exist of willing employees and movement of goods to and from the factory, obstructing the work being carried on, damaging the property of the employer, indulging in mischief or other objectionable activities, occupying the employers premises or property, go-slow, etc. are forms of

misconduct. Insubordination, assault or threat to superior officers, defamation, making false complaint, is all acts of indiscipline. Non-performance of work during working office hours, tampering with official records, and misappropriation of accounts are acts of indiscipline which are considered to be of serious gravity.

Show Cause Notice

Disciplinary Action
Following are some of the purposes and objectives of disciplinary action: To enforce rules and regulations. To punish the offender. To serve as an example to others to strictly follow rules. To ensure the smooth running of the organisation. To increase working efficiency. To maintain industrial peace. To improve working relations and tolerance. To develop a working culture this improves performance.

Dessler (2001) opines that a fair and just discipline process is based on three foundations: rules and regulations, a system of progressive penalties and an appeals process. Let us probe this a bit more. Dessler (2001) states that a set of clear rules and regulations is the first foundation. These rules address things like theft, destruction of company property, drinking on the job and insubordination. The purpose of these rules is to inform employees ahead of time as to what is and is not acceptable behaviour. This is usually done during the employees orientation. A system of progressive penalties is the second foundation of effective disciplining. Penalties, according to Dessler, may range from oral warning to written warnings to suspension from the job to discharge. The severity of the penalty is usually a function of the type of offence and the number of times the offence has been committed. Finally, there should be an appeals process as part of the disciplinary process; this helps to ensure that discipline is meted out fairly and equitably.

Right to Take Disciplinary Action

Right to take disciplinary action emanates from employer-employee relationship and is regulated by contract of employment, standing order of the company (for workers) or conduct and discipline (appeal) rules (for supervisory staff) of the organisation promptness in disciplinary cases is essential. It has to be ascertained which disciplinary rules are applicable to the delinquent employee for taking action.

DISCIPLINARY ACTION PROCEDURE

To start with, based on any misconduct committed by the employee or complaint, a preliminary enquiry is called for. Then disciplinary authority has to initiate action. The following authorities are laid by the organisation for various levels of employees: Disciplinary authority; Appellate authority; and Reviewing authority.

Based on judicial pronouncement, elaborate procedure has been evolved which has to be followed to avoid infirmities in the disciplinary action. Various stages involved are briefly indicated as under: Preliminary enquiry, Framing and serving of charge sheet, Holding of domestic enquiry, Report of the enquiry officer, Consideration of the report of the enquiry officer by disciplinary authority, Order of punishment and its communication, and Appeal.

Disciplinary Action Steps

Though there is no rigid and specific procedure for taking a disciplinary action, the disciplinary procedure followed in Indian industries usually consists of the following steps:
(a) Issuing a letter of charge: When

an employee commits an act of misconduct that requires disciplinary action, the employee concerned should be issued a charge sheet. Charges of misconduct or indiscipline should be clearly and precisely stated in the charge sheet. The charge sheet should also ask for an explanation for the said delinquent act and the employee should be given sufficient time for answering this. getting the answer for the letter of charge served, the explanation furnished is considered and if it is satisfactory, no disciplinary action need be taken. On the contrary when the management is not satisfied with the employee's explanation there is a need for serving a showcause notice.

(b)

Consideration of explanation: On

(c)

Show-cause notice: Show-cause notice is issued by the manager when he believes

that there is sufficient prima facie evidence of employee's misconduct. However, this gives the employee another chance to account for his misconduct and rebut

the charges made against him. Enquiry should also be initiated by first serving him a notice of enquiry indicating clearly the name of the enquiring officer, time, date and place of enquiry, etc. After consideration of the explanation of the charge-sheeted workman or when no reply is received within the specified time limit, the disciplinary authority should issue an order appointing an enquiry officer or an enquiry committee to hold the enquiry of the charge-sheet. The enquiry officer can be an official of the company, or even an outsider, but care should be taken to appoint only such a person as enquiry officer who is neither a witness nor is personally interested in any way in the matter for which the charge-sheet has been issued. It should also contain the name of the management representative. Thereafter, the enquiry officer should issue a notice of enquiry. This notice of enquiry should clearly mention the date, time and place of enquiry. It should ask the workman to present himself with his witnesses/documentary evidence, if any, for the enquiry. It should also be mentioned in the notice of enquiry that if the workman fails to attend the enquiry on the appointed date and time, the same will he held ex-parte. A reasonable period of time should be given to the workman for preparing his defence before the enquiry is held.
(d) Holding of a full-fledge enquiry: This

must be in conformity with the principle of natural justice, that is, the employee concerned must be given an opportunity, of being heard. When the process of enquiry is over and the findings of the same are recorded, the Enquiry Officer should suggest the nature of disciplinary action to be taken. Disciplinary action is to be taken when the misconduct of the employee is proved. While deciding the nature of disciplinary action, the employee's previous record, precedents, effects of disciplinary action on other employees, etc., have to be considered. When the employee feels that the enquiry conducted was not proper and the action taken is unjustified, he must be given a chance to make an appeal. taking the disciplinary action, a proper follow up action has to be taken and the consequences of the implementation of disciplinary action should be noted and taken care of.

(e)

Making a final order of punishment:

(f)

Follow up: After

Suspension
In a case where the charges levelled against a workman are of serious nature and it is considered by the disciplinary authority that his physical presence might endanger the safety of other workmen, or if it is apprehended that he might intimidate others or tamper with the evidence, he may be suspended. During the period of suspension pending enquiry, the workman will get subsistence allowance as per rules. Suspension means prohibiting an employee from attending work, preventing him from discharging the duties assigned to him and withholding the wages payable to him. Suspension does not imply termination of services of an employee: it only means denial of work to him. When the act of misconduct of an employee is considered serious, he is suspended (called as procedural suspension) and an enquiry is ordered to find out whether he is really guilty or not. Sometimes the employee may be suspended, even before issuing a charge-sheet so as to prevent him from tampering with the records of the organization. The employer is obliged to pay a subsistence allowance (one half of basic wage + dearness and compensatory allowances) to the delinquent employee for a period of 90 days. If the enquiry goes beyond 90 days, the allowance is increased to three fourths of the employees' normal emoluments. Minor offences like late coming, sleeping while at work, smoking in prohibited places, etc., do not invite serious punishments like suspension unless the employee repeats the offences habitually. Where standing orders are in force the rules for suspending an employee are mentioned therein and are expected to be followed scrupulously.

Enquiry Procedure
The Procedure of Enquiry: At the commencement of the enquiry, if the delinquent employee is present, the enquiry officer should record the date; time and place of enquiry, names of the persons present and obtain their signatures on the order-sheet. Thereafter, he should proceed as follows: Read out and explain the charges and the reply of the charge-sheet to the delinquent employee and get his confirmation to that effect. In case the delinquent employee has not accepted the charge in reply to the charge-sheet, he should be asked if he pleads guilty of the charges. If the charges are admitted, that should be recorded and signatures of all concerned, with date, should be taken. A full-fledged enquiry need not be held if the misconduct is of a minor nature. In case the charge, if proved, is serious enough to warrant discharge or dismissal, the proper course is to hold the enquiry. Explain to the delinquent employee concerned the procedure to be followed in the enquiry, viz., that the presenting officer will produce witnesses/documentary evidence/exhibits in support of the charge and the delinquent employee will have opportunity to cross examine. Thereafter the delinquent employee should be given opportunity to produce his witnesses/ and the management representative will have a right to cross-examine them. The delinquent employee will have further opportunity to make statement, if any, in his defence. At any stage of the enquiry, the enquiry officer can seek clarification from any witness or the delinquent employee by puffing questions to him. Neither the presenting officer nor the delinquent employee can put leading questions to their respective witnesses. Witnesses in support of the charge are to be examined one by one in the presence of the delinquent employee. The charge-sheeted workman is to be given an opportunity to cross-examine managements witnesses. In case he declines to cross-examine any witness, an endorsement to that effect should be recorded by the enquiry officer. The delinquent employee should be asked to produce his own witnesses one by one and the presenting officer will be allowed to cross-examine them. The delinquent employee should be asked to give his statement after his witnesses are examined and cross-examined. He may also produce documentary evidence, if any. In case the delinquent employee declines to produce any witness/documentary evidence or declines to give any statement, the enquiry officer should make a record to that effect in the order-sheet and obtain signatures of all concerned. If the enquiry remains incomplete in the first sitting and some more witnesses are required to be examined, it may be continued or any other day mutually agreed by both sides. In

such a case, the enquiry officer should make a suitable endorsement in the ordersheet and obtain signatures of all concerned. On each Page of the enquiry proceedings, the signature with date of the chargesheeted workman, his representative, if any, the concerned witness and the management representative should be taken. The concerned witness should sign on each page of his statement only. The enquiry officer will sign on each page of the proceedings after endorsing that the statement has been recorded by him and explained to the parties in their language before they were asked to sign. If the delinquent employee refuses to put his signature even after he had been asked to do so, the enquiry officer should make an endorsement to that effect and get it attested by others present.

Ex-parte Enquiry:
If, on the day fixed for the enquiry, the delinquent employee does not turn up, an ex-parte enquiry may be held by following the usual procedure. In such an enquiry, the presenting officer has to lead the evidence against the charge-sheeted workman. The enquiry officer, by putting questions to the witnesses, get facers to come to reasonable conclusion about the validity or otherwise of the charges. As stated earlier, it is advisable to fix another date of enquiry, instead of holding an ex-parte enquiry on the first sitting itself.

The Enquiry Report:

After the enquiry is over the enquiry officer makes an appreciation of the evidence on record and comes to his conclusion. If there is no corroborative evidence on a particular point, the enquiry officer has to give his own reasons for accepting or rejecting the evidence of such a witness. The enquiry report is a document which should clearly indicate whether the charges levelled against the delinquent employee are proved or not. The conclusion of the enquiry officer should be logical and based only on evidence brought out during the enquiry. The enquiry officer may record clearly and precisely his conclusions with reasons for the same. There is no place for any conjecture or surmises in the enquiry report. It should be such that as per the evidence on record, any impartial man, not connected with the case, should be able to come to the same conclusion as that of the enquiry officer.

Principles of natural justice

Before taking disciplinary action against a worker, management must hold a domestic enquiry, following the principles of natural justice. The principle of natural justice states that no man should be held guilty without getting an opportunity to explain his point of view. It states that the worker be given a fair chance: To present evidence of his own choice; To cross examine the management's evidence; To explain his point of view without any pressure or fear.

The enquiry must be conducted by an impartial person who is fully conversant with the intricacies and procedures of domestic enquiries. Then a notice of enquiry has to be issued to the worker, giving the time, date and place of enquiry and the name of the person holding the enquiry. The worker is supposed to come to the place of enquiry with supportive evidence and witness of his choice at the appointed time and date. The charges made by the employer against the employee are explained to the worker. If the worker agrees with the charges made against him, the enquiry is dropped. If he pleads innocent, the proceedings continue in the presence of the accused. During the course of enquiry, examination and cross-examination should be free and proper and all documents are open to be seen by the parties. If the worker does not turn up at the appointed date and time, the proceedings are held ex-parte. The findings of the enquiry are then conveyed to management in writing. Before taking any punitive action, management should keep in view the gravity of misconduct. The punishment awarded should not be out of proportion to the misconduct of the employee. The order of punishment has to be handed over to the worker immediately. If the punishment does not seem to be fair, the worker can go to the labour court or industrial tribunal.

Punishments
Depending on the gravity of misconduct, management may initiate the following punitive actions against the employee who is found guilty: Dismissal; Discharge; Discharge simpliciter; Suspension; Demotion to a lower grade; With-holding of increments; Fine; and Warning censure.

Of these, suspension, discharge or dismissal may be classified as major punishments, while awarding a fine, warning or censure are regarded as minor punishments. In establishments where the Industrial Employment (Standing order) Act is applicable, the employer can award only those punishments, which are mentioned in the Standing Orders. The object of punishing an employee in a minor way is to express the concern of the employer for maintaining discipline in the establishment. Oral warnings, written censure, fines, etc., all aim at preventing the employee from going off the track. The fine may hit the take-homepay of the employee, warnings may be entered in his personal record, loss of increment has an element of shame attached to it and demotion may be extremely humiliating for the delinquent employee. Discharge simpliciter means termination of an employee services for loss of confidence and trust and does not carry the stigma of misconduct. Major punishment such as suspension, discharge and dismissal need further elaboration and are hence discussed separately here.

Termination
Definition of Termination of Employment:
Termination of employment is the end of an employee's duration with an employer. Depending on the case, the decision may be made by the employee, the employer, or mutually agreed upon by both.

Types of Termination:
There are three types of termination. They are as follows:

1. Voluntary termination:
Voluntary termination is a decision made by the employee to leave the job. Such a decision is commonly known as resignation, quitting, leaving or giving notice. Some common reasons for voluntary termination include: Personal dissatisfaction with the job, employer, hours, or working conditions, or in more severe cases, burnout. Factors in employees personal life not related to the jobs that make holding or performing the job impossible or more difficult. These may include family obligations, education, health, or moving to a new location. Hire at a new job. Reasons for wanting a different job may be better working conditions, better hours, a shorter distance to work, better pay, graduation, career progression or preparation for entry into a new career, or a career change. Feared or anticipated involuntary termination. The employee may wish to take matters into his/her own hands in order to leave more honourably. This is also known as mutual consent in some parts. Retirement. This may be as a result of the employees age (which may vary, depending on job type and benefits available following retirement) or else an injury, disability, or other medical condition forcing early retirement.

2. Involuntary termination:
Involuntary termination is the employee's departure at the hands of the employer. There are two basic types of involuntary termination, known often as being "fired" and "laid off." To be fired, as opposed to being laid off, is generally thought of to be the employee's fault, and therefore is considered in most cases to be dishonourable and a sign of failure.

Often, it may hinder the new job-seekers chances of finding new employment, particularly if he/she has been fired from earlier jobs. Job-seekers sometimes do not mention jobs which they were fired from on their rsums; accordingly, unexplained gaps in employment and refusal to contact previous employers are often regarded as red flags.

3. Dismissal
Dismissal is the employer's choice to let the employee leave, generally for a reason which is the fault of the employee. The most common colloquial term for dismissal in America is being terminated whereas in Britain the term 'getting the sack' is used.

4. Layoff
A less severe form of involuntary termination is often referred to as a layoff (also redundancy or being made redundant in British English). A layoff is usually not strictly related to personal performance, but instead due to economic cycles or the company's need to restructure itself, the firm itself is going out of business, or due to a change in the function of the employer (for example, a certain type of product or service is no longer offered by the company, and therefore jobs related to that product or service are no longer needed). One type of layoff is the aggressive layoff. In such a situation, the employee is laid off for a just cause, but not replaced as the job is eliminated.

5. Termination by mutual agreement:

Some terminations occur as a result of mutual agreement between the employer and employee. When this happens, it is sometimes debatable if the termination was truly mutual. In many of these cases, it was originally the employer's wish for the employee to depart, but the employer offered the mutual termination agreement in order to soften the firing (as in a forced resignation). But there are also times when a termination date is agreed upon before the employment starts (as in an employment contract). Some types of termination by mutual agreement include: The end of an employment contract for a specified period of time (such as an internship) Mandatory retirement. Some occupations, such as commercial airline pilots, face mandatory retirement at a certain age and Forced resignation etc.

Removal and dismissals

The end result of both the terms discharge and dismissal is same, that is, the employee's services stand terminated. In practical usage, both terms are therefore used interchangeably. Some minor differences, however, are worth mentioning here. While dismissal is a sort of punishment against alleged misconduct, discharge is not always a punishment. When the employer examines all background factors leading to the termination of services of an employee, he may simply discharge the employee instead of dismissing him. Dismissal has a negative connotation and carries a punitive label alongside. A person who is dismissed from service may find it difficult to find alternative employment, when compared to a person who is discharged from service. In case of discharge, the errant employee may be served a reasonable, advance notice. This is not so in the case of dismissal where the services are terminated immediately. In case of dismissal, the employer can withhold the dues payable to the employee whereas in case of discharge, usually all these are settled simultaneously. Finally, before dismissing an employee, the employer has to hold disciplinary proceedings (domestic enquiry) in a proper way. In case of discharge, he may or may not go for it. Dismissal is the termination of the services of an employee as a punitive measure for some misconduct. Discharge also means termination of the services of an employee, but not necessarily as a punishment. A discharge does not arise from a single, irrational act. There could be many reasons for it such as: Inebriation and alcoholism Wilful violation of rules Carelessness Insubordination Physical disability Dishonesty Violent and aggressive acts Inefficiency

Discharge/dismissal is a drastic measure seriously impairing the earnings potential and the image of an employee. It should be used sparingly, in exceptional cases where the employee has demonstrated continued inefficiency, gross insubordination or continued violating rules even after several warnings. Before discharging the employee, advance notice of the impending danger must be given and the reasons of discharge must be stated clearly. The employee should be given the opportunity to defend himself. If the grounds under which an employee has been discharged are not strong enough, there should be a provision for

reviewing the case. In any case, the punishment should not be out of proportion to the offence.

Conflicts Industrial disputes Layoff

A layoff is a temporary removal of an employee from the payroll of an organisation due to reasons beyond the control of an employer. Global competition, reductions in product demand, changing technologies that reduce the need for workers, and mergers and acquisitions are the primary factors behind most layoffs. The services of the employees are not utilised during the layoff periods. If the layoff is for a temporary period (sometimes it could the indefinite) the employee is likely to be called back to join the ranks once again. The employer-employee relationship, therefore, does not come to an end but is merely suspended during the period of layoff. The purpose of layoff is to trim the extra fat and make the organisation lean and competitive. Under the Industrial Disputes Act, 1947, a lay-off implies the following things (Section 2 KKK) 1. The employer is temporarily unable to employ some workers on a full-time basis. 2. The reasons for the refusal of employment could be traceable to shortage of inputs, power, accumulation of stocks, breakdown of machinery etc. 3. The employer-employee relationship stands suspended during the period of lay off. 4. The employee gets (excluding holidays) only fifty per cent of his normally eligible total basic wages plus dearness allowance during the period of lay off. (Section 25 C) 5. To claim this compensation, the laid off workman (a) Should not be a casual worker (b) His name must be there on the muster rolls (c) He must have one year's continuous service (d) He must report for work at the appointed time at least once a day. These conditions, however, do not apply when 1. The worker is able to find alternative employment in a nearby location (within 5 miles), 2. The lay off is due to strike or slowing down of production by workers in another part of the establishment 3. The industrial establishment is seasonal in character, and 4. Where less than 20 workers are normally employed therein. Layoffs have a powerful impact on the organisation. They bring down the morale of the organisation's remaining employees, who are forced to live in an environment of

uncertainty and insecurity. Sometimes, even employees whose services may be essential for the organisation may quit fearing loss of membership thus causing further damage to the organisation. The company's standing as a good place to work may suffer. It may be difficult for the company to have the services of talented people afterwards. Layoffs, therefore, have to be carried out in a cautious way keeping the financial, psychological and social consequences in mind.

Termination simpliciter
Judicial stand in India on termination of employment
As is clear from the foregoing, under the Indian legal regime, the basis on which the employer-employee relationship is governed is purely contractual and based upon judicial precedents. The legal principles governing the relationship have evolved from various judicial decisions and the courts have categorized termination into two categories,

(a) Termination simpliciter (b) Termination for misconduct.

While the courts have not defined misconduct, the Supreme Court has held that termination of an employee whether simpliciter or punitive has to be decided on the facts and circumstances of each case. In one such case4, the Supreme Court has examined instances where termination is simpliciter or on account of misconduct i.e. punitive. One of the judicially evolved tests to determine whether an order of termination is punitive is to evaluate whether prior to the termination there was: A full-scale formal enquiry Into allegations involving moral turpitude or misconduct which, Culminated in a finding of guilt.

If all three factors are present, the termination is held to be punitive irrespective of the form of the termination order. Conversely, if any one of the three factors is missing, the termination has been upheld. In India, termination of employment on grounds of misconduct is treated as a punitive action as a certain level of stigma is attached to such a termination. Where an employee is terminated for misconduct, it casts aspersions on the capability of the individual to contribute to the employer and also impacts on future employment with other employers. Courts in India have a tendency of leaning in favour of employees, and where it feels the employer has removed an employee as a punitive measure, it has set-aside the termination as unreasonable. Frequent communications from the employer to the employee informing him of his shortcomings, lack of performance and unsuitability have worked in the employers favour in justifying termination and avoiding long drawn litigation by the employee. Additionally, courts in India have held that the reasons for termination of employment must have objective considerations, i.e. must be based on facts which can be proved by documentation or evidence. In Avineshwar Sawhneys case, the employer had terminated the employment of a person on account of inefficiency and loss of confidence by the management. The lower court upheld the termination order after recording the testimony of the management

witness and held that the subjective satisfaction of the employer was sufficient to cause termination. However, on appeal, the lower courts decision was overruled by the appellate court on the basis that the subjective satisfaction of the employer for termination has to be based on objective considerations. The burden lies on the employer to show and place on record the necessary documentary evidence.

Retrenchment
Retrenchment is the permanent termination of an employee's services due to economic reasons (such as surplus staff, poor demand for products, general economic slowdown, etc.) It should be noted here that termination of services on disciplinary grounds, illness, retirement, and winding up of a business does not constitute retrenchment. In respect of organisations employing 100 or more persons, the Industrial Disputes Act, 1947, makes it obligatory for the employer to give advance notice or pay equivalent wages before the actual lay off date. To claim 50 per cent of basic wages plus dearness allowances, the workman (who is not a casual worker, whose name appears on pay roll, who has completed 12 months of continuous service) must present himself on each working day at the appointed time inside the factory/office premises during the lay off period. If necessary, he might be asked to report a second time during the same day. While laying off workman, the employer is expected to follow the first-in-last-out principle. He should give preference to such workmen if he advertises for reemployment against future openings. The employer has to give three months notice before retrenching the worker and get prior approval from the government as well.

1. Outplacement:
Employees who are retrenched / laid off may have difficulty in finding an alternative job if the market conditions are adverse. There might be a demand for certain category of employees possessing multiple skills, but the retrenched employees may not have those marketable skills. To fill this vacuum, some organisations offer training in such skills and assist the retrenched employees in finding a suitable job elsewhere. Outplacement assistance includes efforts made by employer to help a recently separated worker find a job (Davis, p.269). Apart from training, some multinational firms offer assistance in the form of paid leave, travel charges for attending interviews, search firm charges, waiving bond requirements to the retrenched employees. Bank of America has given a fat sum as liberal retrenchment compensation running into several lakh of rupees to all eligible retrenched officers in 1998. It has also held counselling sessions for those officers on issues such as how to repay their car/house loans, where for invest their money, etc. Search firms were also hired to find suitable employment. When the downsizing effort stabilised, Bank of America had even extended the former employees a warm welcome back home! Such outplacement assistance, in whatever form it is available, assures the remaining employees of the managements commitment towards their welfare if a further downsizing ever happens to take place in future.

2. Suspension:
Suspension means prohibiting an employee from attending work and performing normal duties assigned to him. It is a sort of punishment for a specified period and is generally resorted to only after a proper inquiry has been conducted. During suspension, the employee receives a subsistence allowance. If the charges against the suspended employee are serious and are proved, suspension may lead to termination also.

Closures
Termination of Employment under Closure
Existing regulations require companies to obtain government permission to close an operation or lay off workers in firms with 100 or more employees (service-industry companies, such as IT firms, are exempt). The Industrial Disputes Act, 1947 requires employers wishing to close an establishment to apply for permission at least 60 days before the intended closing date. If the government does not convey its decision within 60 days of the application, approval is deemed granted. A company can appeal against a rejection to the Industrial Tribunal. Workers in an establishment that is closed illegally (that is, without approval) remain entitled to full pay and benefits. Dismissal for misconduct is allowed without notice under the Industrial Employment (Standing Orders) Act, 1946. The Payment of Gratuity Act 1972 entitles workers to a gratuity of up to Rs. 350,000 after five years of continuous service. It is usually difficult for large companies to dismiss staff. Retrenchments and layoffs require full explanation to and prior approval from the state government. (Retrenchment under an agreement specifying a termination date requires no prior notice.) The last-in, first-out principle is usually followed.

VRS
Voluntary retirement:
In case of voluntary retirement, the normal retirement benefits are calculated and paid to all such employees who put in a minimum qualifying service. Sometimes, the employer may encourage the employee to retire voluntarily with a view to reduce surplus staff and cut down labour costs. Attractive compensation benefits are generally in-built in all such plans (referred to as golden handshake scheme). To reduce post-retirement anxieties, companies these days organise counselling sessions, and offer investment related services (e.g., Citibank, Bank of America). Some companies extend medical and insurance benefits to the retirees also, e.g., Indian Oil Corporation.

Voluntary termination:
Voluntary termination is a decision made by the employee to leave the job. Such a decision is commonly known as resignation, quitting, leaving or giving notice. Some common reasons for voluntary termination include: Personal dissatisfaction with the job, employer, hours, or working conditions, or in more severe cases, burnout. Factors in employees personal life not related to the jobs that make holding or performing the job impossible or more difficult. These may include family obligations, education, health, or moving to a new location. Hire at a new job. Reasons for wanting a different job may be better working conditions, better hours, a shorter distance to work, better pay, graduation, career progression or preparation for entry into a new career, or a career change. Feared or anticipated involuntary termination. The employee may wish to take matters into his/her own hands in order to leave more honourably. This is also known as mutual consent in some parts. Retirement. This may be as a result of the employees age (which may vary, depending on job type and benefits available following retirement) or else an injury, disability, or other medical condition forcing early retirement.