Composed situation note
Terminating a worker for absence
Your situation touches Section 27 (absence and loss of lien) and Section 23 (dismissal for misconduct) of the Labour Act 2006, with the 2013 Amendment codifying the show-cause procedure. Final settlement crosses into Chapter VII of the Income Tax Act 2023 for tax on separation payments, and into the Provident Fund Rules.
What applies
Currently in effect. Labour Act 2006 · Sections 23, 26, 27. 2013 Amendment applies.Adjacent. Income Tax on final settlement, Provident Fund Rules, gratuity under s.236.Authorities. DIFE (primary), NBR, Labour Court, Provident Fund Board.
Sections in play
Section 27
Absence · Loss of lien
Section 23
Misconduct
Section 26
Notice period
Section 236
Gratuity
Labour Act 2006
Foundational
Cross-corpus
Income Tax Ch. VII
Settlement treatment
Provident Fund Rules
Benefit clearance
Authorities
DIFE
Primary inspector
NBR
Revenue
Labour Court
Adjudicatory
PF Board
Benefit trustee
Preset content editorially authored and reviewed. Cross-section mappings maintained weekly. Last reviewed 24 April 2026.