Easily manage employment in India

Termination of the employment relationship can happen in the following ways:

• Voluntary termination by the employee (resignation);
• Retirement as per the employment contract;
• Non-renewal of the employment contract or expiry;
• Dismissal of the employee due to serious employee misconduct (e.e. theft, fraud, etc.);
• Mutual separation;
• Collective dismissal due to economic reasons (e.g. bankruptcy, restructuring, etc.)

Notice period varies by the sectors of occupation and differs across states. It is governed by the Industrial Disputes Act, 1947, and the Shops and Establishment Acts of different states. In Delhi, for an employee that has worked for at least 3 months, a notice period of 30 days is required. No notice is required for termination for misconduct . Employer and employee can agree on longer notice periods in the employment contract.

There is no legal stipulation for minimum and maximum probation periods. However, as a matter of trade practice, the probation period usually ranges from 2 to 6 months.