1. company has to prove his job category is no longer required for company and he cannot allocate to another category
2. must pay compensation according to government given structure. ie. there is a formula. Eg if it is 6 yrs = appx 2.5months x 6 you have to pay. and max payment for this is 2.4Mn LKR.
3. Company must get approval from labor commissioner, otherwise employee can sue and can get damage claim + compensation above max 2.4Mn + expenses to recover. or re-statement of job
above is official Way
Un official way,
1) with three Warnings, can fire employee without any payment (but Gratuity, Bcard you have to release, only compensation can eliminated)
2) Theft
3) Vacation of Post
But has to follow correct procedure, otherwise end with compensation and salary payment for the date you terminate and legal action finished..
So employee must know when his/her time comes and leave the company.
Company must know which and what method to apply.
Eg. if employee has received two proper warnings and he/she couldn't defend it. then third can be his termination.
but there are employees who has more than 3 warning letters still on the job, bcoz its company decision.
according to law,employer must release Gratuity on or before 30th day from the retirement (regardless of reason for retirement) otherwise employee has right to recovr penalty/ interest. Bcard also they cannot retain if terminated regardless of reason. (interdict is not falling to termination)
p.s. updated all to original reply.
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