Termination for Cause
The dismissal of an employee due to misconduct, poor performance, or policy violations. This type of termination often results in the loss of severance benefits.
Termination for cause is the dismissal of an employee due to serious misconduct, violation of company policies, poor performance, or other justifiable reasons. Unlike regular termination, it often results in the employee losing severance benefits and may impact their professional record.
In India, termination for cause must be backed by evidence, follow principles of natural justice, and comply with laws such as the Industrial Employment (Standing Orders) Act, the Industrial Disputes Act, and relevant state labour rules. Employers who skip due process risk legal disputes and reputational harm.
💬 “Pagarai’s legal templates and disciplinary process guides made our termination for cause cases fully compliant.” — Deepak, HR Compliance Officer
👉 Need a legally sound process? [Get Pagarai’s termination for cause checklist →]
Common Grounds for Termination for Cause in India
| Reason | Example |
| Misconduct | Harassment, theft, workplace violence |
| Policy Violation | Breach of confidentiality, misuse of company resources |
| Fraud or Dishonesty | Manipulating company records, financial fraud |
| Repeated Poor Performance | Consistently failing to meet set KPIs despite warnings |
| Safety Violations | Endangering workplace safety through negligence |
Bonus: Always conduct a domestic inquiry and provide the employee with a fair chance to present their case before termination.
Why It Matters
- Protects organisational integrity and culture
- Upholds legal compliance in employee dismissals
- Sends a clear message on unacceptable behaviour
- Minimises risk of wrongful termination claims
- Maintains a safe and ethical workplace
Common Tools for Managing Termination for Cause in India
- HRMS platforms for performance and behaviour tracking
- Digital document management for evidence storage
- Pagarai HR Suite – for disciplinary process templates and compliance tracking
How Pagarai Helps
- Provides step-by-step disciplinary action workflows
- Stores investigation records and evidence securely
- Generates legally compliant termination letters
- Tracks warning notices and performance improvement plans
- Integrates with payroll to ensure correct settlements
FAQ
Q1: Can termination for cause happen without notice in India?
Yes — but only if due process is followed and the reason qualifies as just cause under law.
Q2: Is severance pay required in termination for cause?
No — typically, severance is not provided in such cases.
Q3: What legal safeguards should employers follow?
Conduct a domestic inquiry, keep written records, and follow employment contract terms.
Q4: Can employees challenge termination for cause?
Yes — they can approach labour courts or tribunals if they believe the termination was unjust.
