You cannot terminate any staff immediately without conducting formal inquiry. You can suspend the staff first. Issue a show cause notice and instruct the staff to give reason, why the company should not initiate disciplinary action against the staff for the indiscipline act. Then call the staff for domestic inquiry; conduct the inquiry, submit the enquiry reports, findings, and recommendation by the investigation officer or domestic enquiry board. If the domestic enquiry board recommends for termination of the staff, then you can terminate.
At the time of termination, you must pay the salary for the period of suspension, then notice period as per employment contract, Encashment of Leave (If available), Retrenchment Compensation and Gratuity as per his eligibility immediately and send the staff out.
I have given my general procedure and general guidance only. If you want to get specific reply, give some more details about the staff, his behaviour, his level in your organisation, gravity of the offence etc.
19th April 2013 From India, Kumbakonam