Hi All,
My company wants to terminate two employees who are not performing well. I would like to inquire about the salary that needs to be paid to these individuals. Should we pay their actual salary or implement some form of deduction as a penalty?
Thanks and regards,
Sakshi
From India, Delhi
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My company wants to terminate two employees who are not performing well. I would like to inquire about the salary that needs to be paid to these individuals. Should we pay their actual salary or implement some form of deduction as a penalty?
Thanks and regards,
Sakshi
From India, Delhi
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Employee gets the salary not for performance but for spending his/her working hours in a particular workplace. Incentive and bonus are the tools for performance measurement. So, salary can't be deducted.
Regards, Poonam Yadav
From India, Delhi
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Regards, Poonam Yadav
From India, Delhi
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I fully agree with Poonam Yadav. If you intent to deduct, you have to do from his performance incentive. Regards, MS
From India, Mumbai
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From India, Mumbai
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we have a contract employee whose notice period is 1 Day. he is not preforming well so i want to know before how much time have to give him notice ?
From India, New Delhi
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From India, New Delhi
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Hi, I agree with Poonam. Employers can stop paying benefits like leave encashment, bonus, etc., other than salary. Before taking any such step, please double ensure that the employee acknowledges his mistake in writing to avoid any further ramifications against the employer.
From India
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7From India
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Dear Vijaya,
It is not so easy to stop paying benefits like leave encashment, bonus, etc. You cannot stop paying a bonus to one employee while paying others under the provisions of the Payment of Bonus Act. Any such action on the part of the management would be a violation of the law of the land.
If you believe you can stop the payment of leave encashment and bonus, etc., can you quote the provisions of the law in support of your reply?
From India, Delhi
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It is not so easy to stop paying benefits like leave encashment, bonus, etc. You cannot stop paying a bonus to one employee while paying others under the provisions of the Payment of Bonus Act. Any such action on the part of the management would be a violation of the law of the land.
If you believe you can stop the payment of leave encashment and bonus, etc., can you quote the provisions of the law in support of your reply?
From India, Delhi
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Dear Sakshi,
You cannot stop or reduce the salary of an employee unless resorting to the process of disciplinary action against an employee for misconduct on his part. However, poor performance does not fall within the scope of misconduct unless the employee is found guilty of dereliction of his duties and responsibilities or fails to achieve the prescribed targets.
If you want better performance from the employee, it is advisable to establish specific targets for them to achieve. Subsequently, you can take disciplinary action for failure to meet the stated targets and for neglecting orders from management. It is essential to ensure that the targets are reasonable. Performance varies among employees depending on their individual capabilities, capacities, and work environments. Therefore, it is also important to evaluate the work environments in which the employee is placed.
From India, Delhi
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You cannot stop or reduce the salary of an employee unless resorting to the process of disciplinary action against an employee for misconduct on his part. However, poor performance does not fall within the scope of misconduct unless the employee is found guilty of dereliction of his duties and responsibilities or fails to achieve the prescribed targets.
If you want better performance from the employee, it is advisable to establish specific targets for them to achieve. Subsequently, you can take disciplinary action for failure to meet the stated targets and for neglecting orders from management. It is essential to ensure that the targets are reasonable. Performance varies among employees depending on their individual capabilities, capacities, and work environments. Therefore, it is also important to evaluate the work environments in which the employee is placed.
From India, Delhi
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Amit, thank you for your attachment for the termination of any employees or workers. Kindly read the termination policy (In Factory Act and Labour Act) before taking any action. In the termination policy, clearly mention that for any action, you need a reason with proof.
With regards,
Sameer K Ghosh
From India, Daman
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With regards,
Sameer K Ghosh
From India, Daman
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Apart from the points brought up, you are required to provide payment for accumulated leave for the current year and previous years as per your company's policy. Additionally, as pointed out by Mr. Dhingra, termination decisions should be based on the performance against set Key Result Areas (KRAs), which should be documented through counseling letters, appraisals, or warnings.
Rajusiachen
From India, Coimbatore
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Rajusiachen
From India, Coimbatore
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Dear Dhingra ji,
I agree with you that we cannot stop benefits like bonus, leave encashment, etc. However, for gross misconduct of an employee in the financial aspect and leaking company confidential matters, the employer can forfeit such benefits. I have seen such situations in the past. It seems there is a provision in the related act, and I have come across the same. I am in search of the provision and will come back.
From India
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I agree with you that we cannot stop benefits like bonus, leave encashment, etc. However, for gross misconduct of an employee in the financial aspect and leaking company confidential matters, the employer can forfeit such benefits. I have seen such situations in the past. It seems there is a provision in the related act, and I have come across the same. I am in search of the provision and will come back.
From India
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Dear All, Few member are just spoiling the time of the member and space of forum by posted some idiotic posting Regards
From India, Patna
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From India, Patna
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Dear Team, the members are free to express their thoughts and experiences when a discussion has come up or otherwise it will not be called forum. If Iam wrong pl correct me.
From India
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From India
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Dear All,
Let us stop commenting on other contributors. Shall we restrict ourselves to only giving our views and suggestions?
Dear Seekers,
Please be aware, in my opinion, the views expressed herein in the forum are not conclusive as they are expressed with inadequate details/information. I request all of you to do your own homework to ensure that you don't err on the wrong side. A "Disclaimer" is always active.
Coming to the present query:
For termination, under whatever circumstances, a proper procedure should be followed. This procedure would largely depend on the terms & conditions of appointment, applicable laws, type of establishment, etc.
Still, nobody could guarantee that the issue of a suitable compensation package wouldn't arise.
Nevertheless, the terminated employee would have his/her own right to seek remedy under applicable laws which may include, if successful, reinstatement itself, with back wages in arrears, if your case is not strong enough and the procedure adopted is insufficient.
Kumar S.
BG.
From India, Bangalore
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Let us stop commenting on other contributors. Shall we restrict ourselves to only giving our views and suggestions?
Dear Seekers,
Please be aware, in my opinion, the views expressed herein in the forum are not conclusive as they are expressed with inadequate details/information. I request all of you to do your own homework to ensure that you don't err on the wrong side. A "Disclaimer" is always active.
Coming to the present query:
For termination, under whatever circumstances, a proper procedure should be followed. This procedure would largely depend on the terms & conditions of appointment, applicable laws, type of establishment, etc.
Still, nobody could guarantee that the issue of a suitable compensation package wouldn't arise.
Nevertheless, the terminated employee would have his/her own right to seek remedy under applicable laws which may include, if successful, reinstatement itself, with back wages in arrears, if your case is not strong enough and the procedure adopted is insufficient.
Kumar S.
BG.
From India, Bangalore
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Poonam,
While I do not agree that salary can be refused for a period already worked, your statement is totally unacceptable. It is only in government companies and PSU companies that people get paid simply to come to the office. In all private companies, you get paid to work, and performance is the basic and primary measure of it. That is why we have KRAs specified.
We have 40 people working for us. We pay no incentive or bonus, but they still work efficiently and sincerely.
However, the original point made is that salary has to be given to the person who has worked. Not because he gave his time (time given and nothing achieved is counterproductive) but probably because you will find it difficult to identify how much of the salary must be deducted for less performance.
(Note: he has achieved less than 50%, but it means he did work. If he had achieved zero, perhaps you could refuse salary. Again, it would be difficult to support in court, so better to pay it off to avoid hassle).
Another reason you can't refuse salary is that there's nothing in your appointment letter that states salary will not be given unless targets are met. I know some domestic DSA and BPO companies that do it. They have a very small fixed salary and the rest linked to targets. Even there, they pay the fixed salary.
From India, Mumbai
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While I do not agree that salary can be refused for a period already worked, your statement is totally unacceptable. It is only in government companies and PSU companies that people get paid simply to come to the office. In all private companies, you get paid to work, and performance is the basic and primary measure of it. That is why we have KRAs specified.
We have 40 people working for us. We pay no incentive or bonus, but they still work efficiently and sincerely.
However, the original point made is that salary has to be given to the person who has worked. Not because he gave his time (time given and nothing achieved is counterproductive) but probably because you will find it difficult to identify how much of the salary must be deducted for less performance.
(Note: he has achieved less than 50%, but it means he did work. If he had achieved zero, perhaps you could refuse salary. Again, it would be difficult to support in court, so better to pay it off to avoid hassle).
Another reason you can't refuse salary is that there's nothing in your appointment letter that states salary will not be given unless targets are met. I know some domestic DSA and BPO companies that do it. They have a very small fixed salary and the rest linked to targets. Even there, they pay the fixed salary.
From India, Mumbai
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[QUOTE=arup.chatterjee;1711237]
Dear All,
Dear Pon,
I mean to say that being an HR of a company, one should know our country's rules and regulations. If anyone asks such a basic thing, it looks unprofessional. If anyone is hurt by my view, I apologize.
Regards
From India, Patna
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Dear All,
Dear Pon,
I mean to say that being an HR of a company, one should know our country's rules and regulations. If anyone asks such a basic thing, it looks unprofessional. If anyone is hurt by my view, I apologize.
Regards
From India, Patna
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