In this day and age of hire and fire, employers usually assume that statutory dues of a managerial employee terminated for misconduct can be legitimately forfeited. This assumption may be far from the established principles of applicable laws. Some of the post termination entitlements of a managerial employee dismissed for misconduct are discussed below:
(i) Salary: Post termination obligations and rights of managerial employees are governed by their contracts and the applicable state’s shops and establishment enactment. While in most states employees occupying positions of confidential, managerial or supervisory character are excluded from the purview of the shops and establishment legislations (‘S&E Act’), there are a few states such as Punjab and Haryana that do not afford a similar exemption and therefore, employees working in managerial or supervisory capacity in these states fall within the purview of the S&E Act. Consequently, the wages of an employee in these states are liable to be paid within 2 working days of termination without any deductions.