Hi,
Could you please provide me with the criteria for terminating a permanent employee based on poor performance? I need a document that specifies the process of terminating an employee after sending two written warnings (red emails) regarding their poor performance.
Thank you in advance.
From India, Ambala
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Could you please provide me with the criteria for terminating a permanent employee based on poor performance? I need a document that specifies the process of terminating an employee after sending two written warnings (red emails) regarding their poor performance.
Thank you in advance.
From India, Ambala
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Dear member,
Well, gentlemen, if you wish to terminate an employee on the grounds of poor performance, then the contents of the mail are more important than the color of the mail.
Have you given him a warning letter for his poor performance? If yes, then did you preserve the duplicate copy with the signature of the employee? Going further, you need to conduct a domestic inquiry to prove poor performance. Did you communicate to the employee what was the expected performance and did you obtain his signature on receipt of this communication?
Termination is a legal matter and it has to be handled with due sensitivity. I say so because if tomorrow's employee were to go to court, your records would come under scrutiny. Poor records should not push you to a sticky wicket.
Thanks,
Dinesh Divekar
From India, Bangalore
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8220Well, gentlemen, if you wish to terminate an employee on the grounds of poor performance, then the contents of the mail are more important than the color of the mail.
Have you given him a warning letter for his poor performance? If yes, then did you preserve the duplicate copy with the signature of the employee? Going further, you need to conduct a domestic inquiry to prove poor performance. Did you communicate to the employee what was the expected performance and did you obtain his signature on receipt of this communication?
Termination is a legal matter and it has to be handled with due sensitivity. I say so because if tomorrow's employee were to go to court, your records would come under scrutiny. Poor records should not push you to a sticky wicket.
Thanks,
Dinesh Divekar
From India, Bangalore
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Thank you for the response, Mr. Dinesh.
I would like to inquire whether it is permissible to terminate a permanent employee based on the aforementioned reasons. One of our employees is not meeting our performance expectations, despite receiving two written warnings regarding his subpar performance. However, he has not shown any improvement even after being notified.
Is it within our rights to terminate his employment?
From India, Ambala
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I would like to inquire whether it is permissible to terminate a permanent employee based on the aforementioned reasons. One of our employees is not meeting our performance expectations, despite receiving two written warnings regarding his subpar performance. However, he has not shown any improvement even after being notified.
Is it within our rights to terminate his employment?
From India, Ambala
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One of our employees is not working up to our expectations, and two written emails have been sent to him regarding his poor performance.
Have quantitative or qualitative standards been documented and informed to him and other similarly placed employees? What was the reply, if any, from the employee? How long has he/she been employed with the firm?
To terminate an employee, laws of natural justice are to be followed. Two red-colored mails will not serve the purpose in any way. On the contrary, this color code can indicate that management has already prejudged the issue. Call the employee and inquire about his poor performance, document it, and keep his HOD in the loop. Subsequent to all this, if there is no measurable improvement and he is maintaining lower standards than his coworkers, action can be considered.
From India, Pune
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Have quantitative or qualitative standards been documented and informed to him and other similarly placed employees? What was the reply, if any, from the employee? How long has he/she been employed with the firm?
To terminate an employee, laws of natural justice are to be followed. Two red-colored mails will not serve the purpose in any way. On the contrary, this color code can indicate that management has already prejudged the issue. Call the employee and inquire about his poor performance, document it, and keep his HOD in the loop. Subsequent to all this, if there is no measurable improvement and he is maintaining lower standards than his coworkers, action can be considered.
From India, Pune
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The employee was called to ask for the reasons for the poor performance, but he did not justify it. Now, we have lost one of our clients due to his poor project performance. We have a policy document that clearly states a person can be terminated based on performance, and this is also mentioned in our offer letter.
Now, what can I do to resolve this issue, as we do not want him to continue with us.
From India, Ambala
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Now, what can I do to resolve this issue, as we do not want him to continue with us.
From India, Ambala
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Hi,
How long has the employee been working with you?
Was he a good performer earlier but is now not performing well? If so, what were the reasons behind the decline in his performance? What was his explanation? It's not clear.
If he has already been warned about his low performance, then discuss this with him. Encourage him to submit his resignation and relieve him properly. In the case of termination due to poor performance, he cannot showcase the same to his future employer. I hope you will be paying him some money as per your employment terms (one month's gross salary?). The same can be paid even if he submits his resignation. However, explain to him whether he prefers proper relieving or termination and let him make the decision.
By collecting his resignation letter, it benefits both parties involved and helps avoid unnecessary legal hurdles.
From India, Madras
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How long has the employee been working with you?
Was he a good performer earlier but is now not performing well? If so, what were the reasons behind the decline in his performance? What was his explanation? It's not clear.
If he has already been warned about his low performance, then discuss this with him. Encourage him to submit his resignation and relieve him properly. In the case of termination due to poor performance, he cannot showcase the same to his future employer. I hope you will be paying him some money as per your employment terms (one month's gross salary?). The same can be paid even if he submits his resignation. However, explain to him whether he prefers proper relieving or termination and let him make the decision.
By collecting his resignation letter, it benefits both parties involved and helps avoid unnecessary legal hurdles.
From India, Madras
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There are 2 ways of tackling this issue. One is personal discussion. HR can call the employee concerned, in the presence of his HOD/immediate supervisor. Try to find out the reasons for his bad/poor performance. At the same time, be assertive in communication with him that management cannot accept this and convince him to submit his resignation so that the issue could be resolved amicably in a friendly manner.
The second way is the official route. Have you prepared his job description and Key Result Area/Key Performance Area (JD and KRA/KPA)? Have you provided him with a copy and obtained his acknowledgment (signature)? If yes, prepare a letter quantitatively measuring his poor performance and then issue a termination letter along with his full and final settlement dues including one month's extra salary.
I recommend the first approach proposed by me.
Thanks, regards
From India, Aizawl
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The second way is the official route. Have you prepared his job description and Key Result Area/Key Performance Area (JD and KRA/KPA)? Have you provided him with a copy and obtained his acknowledgment (signature)? If yes, prepare a letter quantitatively measuring his poor performance and then issue a termination letter along with his full and final settlement dues including one month's extra salary.
I recommend the first approach proposed by me.
Thanks, regards
From India, Aizawl
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Low efficiency is not misconduct unless it is deliberate go-slow, which is misconduct. In such cases, a domestic enquiry has to be held, and it has to be established that poor performance is deliberate. Therefore, in the absence of an enquiry, such termination would be illegal. Of course, in the case of probationers, poor performance can be grounds for termination, and an enquiry may not be necessary. Poor performance would be a factor when considering promotion, increment, etc.
From India, Pune
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From India, Pune
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Terminating a permanent employee on the basis of performance is a sensitive and often complex process that requires careful adherence to legal and procedural guidelines to ensure fairness and to mitigate potential legal risks. Here’s a structured approach to handle performance-based terminations:
Read more: Termination Letter Format
Steps for Terminating a Permanent Employee Due to Performance
Document Performance Issues:
Maintain Records: Keep detailed records of performance issues, including dates, specific incidents, and any feedback or warnings provided.
Performance Reviews: Ensure that regular performance reviews are conducted, documented, and communicated to the employee.
Provide Feedback and Support:
Constructive Feedback: Offer constructive feedback and clearly communicate performance expectations.
Support and Training: Provide necessary support, training, and resources to help the employee improve.
Implement Performance Improvement Plans (PIP):
PIP Framework: Develop a formal Performance Improvement Plan outlining specific performance issues, expected improvements, and a timeline for achieving them.
Monitoring and Review: Regularly monitor progress and provide feedback during the PIP period.
Give Formal Warnings:
Verbal and Written Warnings: Issue formal warnings if there is no improvement, starting with verbal warnings followed by written warnings.
Documentation: Document all warnings and communications regarding performance issues.
Conduct a Final Review:
Final Performance Review: Conduct a final review meeting to discuss the employee’s performance and whether they have met the PIP objectives.
Decision Making: Make a decision based on documented evidence and performance reviews.
Follow Legal and Company Procedures:
Employment Laws: Ensure compliance with relevant employment laws and regulations, which may vary by jurisdiction.
Company Policy: Adhere to the company’s internal policies and procedures regarding termination.
Prepare Termination Documents:
Termination Letter: Draft a termination letter that clearly states the reason for termination, effective date, and any severance or benefits owed.
Settlement of Dues: Ensure all dues, including unpaid salary, leave encashment, and any other benefits, are settled.
Conduct the Termination Meeting:
Private Meeting: Conduct the termination meeting in a private and respectful manner.
Explain the Decision: Clearly explain the reason for termination, referring to documented performance issues and the efforts made to help the employee improve.
Provide Termination Letter: Hand over the termination letter and discuss any next steps, including the return of company property and final settlements.
Post-Termination Follow-Up:
Exit Interview: If appropriate, conduct an exit interview to gather feedback and provide closure.
Support Services: Offer support services such as outplacement assistance or counseling if available.
Sample Termination Letter for Performance
[Your Name] [Your Position] [Company Name] [Company Address] [City, State, ZIP Code]
[Date]
[Employee's Name] [Employee's Position] [Employee's Address] [City, State, ZIP Code]
Dear [Employee's Name],
Subject: Termination of Employment
I regret to inform you that your employment with [Company Name] is being terminated, effective [Termination Date].
This decision has been made due to sustained performance issues that have not improved despite multiple reviews and the implementation of a Performance Improvement Plan. We have discussed these issues on several occasions, most recently during your final performance review on [Date].
Your final paycheck, including any unpaid salary and accrued leave, will be processed and provided to you as per company policy. Please ensure the return of all company property by [Return Date].
We appreciate your efforts during your tenure with us and wish you all the best in your future endeavors.
Sincerely,
[Your Name] [Your Position] [Contact Information]
Conclusion Terminating a permanent employee for performance reasons should be handled with utmost care, transparency, and adherence to legal and organizational guidelines. Proper documentation, fair opportunities for improvement, and respectful communication are key to managing this process effectively.
From India, Mumbai
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Read more: Termination Letter Format
Steps for Terminating a Permanent Employee Due to Performance
Document Performance Issues:
Maintain Records: Keep detailed records of performance issues, including dates, specific incidents, and any feedback or warnings provided.
Performance Reviews: Ensure that regular performance reviews are conducted, documented, and communicated to the employee.
Provide Feedback and Support:
Constructive Feedback: Offer constructive feedback and clearly communicate performance expectations.
Support and Training: Provide necessary support, training, and resources to help the employee improve.
Implement Performance Improvement Plans (PIP):
PIP Framework: Develop a formal Performance Improvement Plan outlining specific performance issues, expected improvements, and a timeline for achieving them.
Monitoring and Review: Regularly monitor progress and provide feedback during the PIP period.
Give Formal Warnings:
Verbal and Written Warnings: Issue formal warnings if there is no improvement, starting with verbal warnings followed by written warnings.
Documentation: Document all warnings and communications regarding performance issues.
Conduct a Final Review:
Final Performance Review: Conduct a final review meeting to discuss the employee’s performance and whether they have met the PIP objectives.
Decision Making: Make a decision based on documented evidence and performance reviews.
Follow Legal and Company Procedures:
Employment Laws: Ensure compliance with relevant employment laws and regulations, which may vary by jurisdiction.
Company Policy: Adhere to the company’s internal policies and procedures regarding termination.
Prepare Termination Documents:
Termination Letter: Draft a termination letter that clearly states the reason for termination, effective date, and any severance or benefits owed.
Settlement of Dues: Ensure all dues, including unpaid salary, leave encashment, and any other benefits, are settled.
Conduct the Termination Meeting:
Private Meeting: Conduct the termination meeting in a private and respectful manner.
Explain the Decision: Clearly explain the reason for termination, referring to documented performance issues and the efforts made to help the employee improve.
Provide Termination Letter: Hand over the termination letter and discuss any next steps, including the return of company property and final settlements.
Post-Termination Follow-Up:
Exit Interview: If appropriate, conduct an exit interview to gather feedback and provide closure.
Support Services: Offer support services such as outplacement assistance or counseling if available.
Sample Termination Letter for Performance
[Your Name] [Your Position] [Company Name] [Company Address] [City, State, ZIP Code]
[Date]
[Employee's Name] [Employee's Position] [Employee's Address] [City, State, ZIP Code]
Dear [Employee's Name],
Subject: Termination of Employment
I regret to inform you that your employment with [Company Name] is being terminated, effective [Termination Date].
This decision has been made due to sustained performance issues that have not improved despite multiple reviews and the implementation of a Performance Improvement Plan. We have discussed these issues on several occasions, most recently during your final performance review on [Date].
Your final paycheck, including any unpaid salary and accrued leave, will be processed and provided to you as per company policy. Please ensure the return of all company property by [Return Date].
We appreciate your efforts during your tenure with us and wish you all the best in your future endeavors.
Sincerely,
[Your Name] [Your Position] [Contact Information]
Conclusion Terminating a permanent employee for performance reasons should be handled with utmost care, transparency, and adherence to legal and organizational guidelines. Proper documentation, fair opportunities for improvement, and respectful communication are key to managing this process effectively.
From India, Mumbai
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Dear Abhishek Tiwari,
Your reply has revived a thread almost after five years. Although you have mentioned a list of actions to be taken before termination of the employee's services, two important points are missed: conducting a domestic enquiry and issuing the show cause notice. We don't have to write a detailed letter of termination. A show cause notice is issued if it emerges that the employee has committed misconduct. In the show cause notice, we have to be specific and quote the exact part number, paragraph number, and clause number under which misconduct has occurred. "Termination of services" is a punishment awarded if the reply to the show cause notice is not satisfactory. So, we just have to communicate about the decision on punishment. On the strength of this letter, the employee can be told to submit a letter of resignation.
Issuing a letter of termination without conducting a domestic enquiry or issuing a show cause notice is risky as these decisions of the management can be challenged in the law courts. In the last 70-75 years, the courts in India have set aside a large number of terminations. Many times, employers were told to pay back wages too. Therefore, while handling matters of discipline, we have to be cautious.
It appears that your reply is generated from AI-assisted software like ChatGPT or Copilot. I am not against the use of artificial intelligence per se; nevertheless, human intelligence has to be used while deciding on its application. A blanket application could land the employers in trouble.
Thanks,
Dinesh Divekar
From India, Bangalore
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Your reply has revived a thread almost after five years. Although you have mentioned a list of actions to be taken before termination of the employee's services, two important points are missed: conducting a domestic enquiry and issuing the show cause notice. We don't have to write a detailed letter of termination. A show cause notice is issued if it emerges that the employee has committed misconduct. In the show cause notice, we have to be specific and quote the exact part number, paragraph number, and clause number under which misconduct has occurred. "Termination of services" is a punishment awarded if the reply to the show cause notice is not satisfactory. So, we just have to communicate about the decision on punishment. On the strength of this letter, the employee can be told to submit a letter of resignation.
Issuing a letter of termination without conducting a domestic enquiry or issuing a show cause notice is risky as these decisions of the management can be challenged in the law courts. In the last 70-75 years, the courts in India have set aside a large number of terminations. Many times, employers were told to pay back wages too. Therefore, while handling matters of discipline, we have to be cautious.
It appears that your reply is generated from AI-assisted software like ChatGPT or Copilot. I am not against the use of artificial intelligence per se; nevertheless, human intelligence has to be used while deciding on its application. A blanket application could land the employers in trouble.
Thanks,
Dinesh Divekar
From India, Bangalore
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