Article · 15 min read

A Guide to Terminating Employment in India

Dezan Shira & Associates · India Briefing Free Intermediate India

This is the legal spine for doing it cleanly under Indian rules. It spells out why parting during probation is the cleanest exit (lighter notice, no retrenchment machinery), the full-and-final settlement clock (exit wages due within 2 working days of the last day under the Code on Wages), and exactly what to document: termination letter, settlement statement, payment records, and the employee's acknowledgment. It also flags state-by-state notice differences (Maharashtra, Karnataka, Delhi), so a Bengaluru fire follows different paper than a Mumbai one.

  • Firing during probation is materially cleaner than firing a confirmed employee, so move inside the 60-to-90-day window if you can
  • Full-and-final settlement (salary, leave encashment, statutory dues) is legally due within 2 working days of the last day, so pay fast and issue the relieving letter
  • Keep the paper trail: termination letter, settlement statement, payment proof, and a signed acknowledgment protect you if it is ever disputed
Open on india-briefing.com ↗

It answers 2 questions

  1. How do I let someone go the right way when a hire is not working out in a small team?
  2. How do I fire my first bad hire fast and cleanly without blowing up a five-person team?

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