Dear professional i want your guidance to terminate some non performer senior employees who worked more than 4.5 years and almost closer for gratuity eligibility cliteria.Management want to terminate them to save the gratuity amount. They force me to terminate due to non performance reason, can is it ethical as per law to terminate senior employee before they completing 4 years 240 days which is eligibility criteria as per gratuity act, i want your guidance about
1)can it is ethical to terminate senior old employees just to save gratuity amount,
2) Are they eligible for gratuity if company terminate them when they almost closer for gratuity eligibility criteria
3)can we terminate them due to non performance reason, and
4) what is a procedure of termination how many days warning notice i have to sent them,
Please advice.
From India, Nashik
1)can it is ethical to terminate senior old employees just to save gratuity amount,
2) Are they eligible for gratuity if company terminate them when they almost closer for gratuity eligibility criteria
3)can we terminate them due to non performance reason, and
4) what is a procedure of termination how many days warning notice i have to sent them,
Please advice.
From India, Nashik
Dear Dinesh,
Whether performance issues / grey area has been discussed with the employee alreday ?
Any verbal warning/ written warning issued already ?
What opportunity is provided to that employee to improve his performance ?
1) While termination due to non performance is acceptable termination is just for the sake saving gratuity is not right.
2) Gratuity will be applicable only if the employee completes 5 years of continuous service with the Organization.
3) Termination on the grounds non performance is ok but it has to be justified properly. The immediate Supervisor should have discussed about the improvement areas already. You should have proper documentary evidence for the same. If this termination is unplanned one then in all fairness provide the employee with one month notice or one month pay against notice.
From India, Madras
951Whether performance issues / grey area has been discussed with the employee alreday ?
Any verbal warning/ written warning issued already ?
What opportunity is provided to that employee to improve his performance ?
1) While termination due to non performance is acceptable termination is just for the sake saving gratuity is not right.
2) Gratuity will be applicable only if the employee completes 5 years of continuous service with the Organization.
3) Termination on the grounds non performance is ok but it has to be justified properly. The immediate Supervisor should have discussed about the improvement areas already. You should have proper documentary evidence for the same. If this termination is unplanned one then in all fairness provide the employee with one month notice or one month pay against notice.
From India, Madras
Dear sir,
We have not send them any warning notice to improve their performance, how many days time frame we have to allow them to improve their performance, and if they not improve in given time frame in warning letter then can we terminate them without giving one month notice, please advice
From India, Nashik
We have not send them any warning notice to improve their performance, how many days time frame we have to allow them to improve their performance, and if they not improve in given time frame in warning letter then can we terminate them without giving one month notice, please advice
From India, Nashik
It is felt that, your (management's) decision to terminate an employee who has already put in
4.5 years of service with you, abruptly and without giving opportunity to improve his performance, is not justifiable. Even for a probationer's termination also, an opportunity is given to him, by extending his/her probation period by 3/6 months. If the management feels that the employee is a non performer or not capable of delivering the goods, you should have put him under PIP for 3 more months and again his performance should have been reviewed/evaluated
More over, management did not communicate him about the performance issue either verbally or by writing. In such a scenario, do you think the action is fair and justified, on the part of management?
From India, Aizawl
4.5 years of service with you, abruptly and without giving opportunity to improve his performance, is not justifiable. Even for a probationer's termination also, an opportunity is given to him, by extending his/her probation period by 3/6 months. If the management feels that the employee is a non performer or not capable of delivering the goods, you should have put him under PIP for 3 more months and again his performance should have been reviewed/evaluated
More over, management did not communicate him about the performance issue either verbally or by writing. In such a scenario, do you think the action is fair and justified, on the part of management?
From India, Aizawl
Hi,
There is no such specific time frame. The bottom line is employee should aware that his/her performance is not up to to the expected level and opportunity should have been provided to improve. Keep the employee on PIP, set deadlines make it clear if he/she doesn't improve within stipulated time frame result would be exit without any further notice.
But all the same PIP should not be used just because to save Gratuity burden of the employer.
From India, Madras
There is no such specific time frame. The bottom line is employee should aware that his/her performance is not up to to the expected level and opportunity should have been provided to improve. Keep the employee on PIP, set deadlines make it clear if he/she doesn't improve within stipulated time frame result would be exit without any further notice.
But all the same PIP should not be used just because to save Gratuity burden of the employer.
From India, Madras
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