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Dear Seniors,

Kindly suggest a formal, legal way of terminating an employee due to his non-performance. He had been given performance warning letters months back and warned to perform well. However, the situation has not changed. Written warnings and verbal warnings were given, but he is not improving himself. He is currently in the finishing stage of a project that he is handling alone. The decision is to hold the salary until he completes the project. Additionally, the management wants to present him with two options:

1. In the future, he will not work with the current salary; the salary would be lower.
2. If he does not accept the first option, he will have to quit the organization.

I am going to handle this situation now. How can I legally manage this case? Your experienced and valuable suggestions would be greatly appreciated.

Regards,
Soja Oliver
HR ADMIN

From India, Kochi
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Dear Seniors,

Again, what would be the legal method of terminating an employee considering the above case? Please suggest your thoughts. I am preparing a letter and now I am looking for strong and valuable points to incorporate in the letter. Kindly provide your inputs.

Regards,
Soja

From India, Kochi
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Dear Soja,

First, never disclose your company name on blogs. You are bound by your confidentiality agreement with your company not to disclose official issues, and this would go against you and your job. Please remove it immediately.

Now to your issues:

1. Holding the salary of an employee is inhuman and against the law. Your company will have a tough time legally if the employee complains to the Labor office.

2. Why would you give him the option to resign now if you want him to complete the project?

3. If you want him to resign after the completion of the project, then I guess your earlier warning notice should be enough.

4. Also, I am not clear when the employee is completing the project why he is not a good performer. What makes your management think that? Please be very clear and fair. Do not go by what the management is saying. Think in an HR perspective and understand the situation and handle it.

5. Ensure that the employee is given a fair chance to improve before either terminating him from service due to non-performance or otherwise.

Hope this is helpful.

Ukmitra

From Saudi Arabia, Riyadh
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Are you sure it is his non-performance that is the reason for termination, or is there something more to it? Have you ever thought about why the management wants to offer him the option of working for a lesser salary? It has to be either termination or a lesser salary, not options of both. Remember that HR is supposed to hold the employees and the organization together and be fair to both at the same time (a tough job, really!). If HR has to merely act as a messenger, then I guess it would be inhumane resource.
From India, Mumbai
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You have already given him the warning notice, which makes termination easier. However, as you have mentioned that the company can't terminate him until he completes the project, it's better to wait until the notice period days align with the project completion duration. This could be the moment when you can issue the final termination letter, asking him to serve the notice period.

Regards,
Swati Gupta

From India, Lucknow
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Yes, do not withhold salary. Give necessary training where possible and document the procedure. Check for improvement; if there is no improvement, document the situation and take the necessary steps forward. Most importantly, ensure that all processes are well-documented.

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Hi Soja, As you have issued Warning letters, kindly hold a domestic enquiry and prove his non performance in the enquiry and terminate his service.
From India, Mumbai
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Hi as you have issued warning letters, kindly hold a domestic enquiry and prove his non performance and terminate his services, you will be legally strong
From India, Mumbai
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Very nicely explained, Ukmitra.

[QUOTE=ukmitra;997885]Dear Soja,

First, never disclose your company name on blogs. You are bound by your confidentiality agreement with your company not to disclose official issues, and this would go against you and your job. Please remove it immediately.

Now to your issues,

1. Holding the salary of an employee is inhuman and against the law. Your company will have a tough time legally if the employee complains to the Labor office.

2. Why would you give him the option to resign now if you want him to complete the project?

3. If you want him to resign after the completion of the project, then I guess your earlier warning notice should be enough.

4. Also, I am not clear; when the employee is completing the project, why is he not a good performer? What makes your management think that? Please be very clear and fair. Do not go by what the management is saying. Think in an HR perspective and understand the situation and handle it.

5. Ensure that the employee is given a fair chance to improve before either terminating him from service due to non-performance or otherwise.

Hope this is helpful.

Ukmitra

From India, Mumbai
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Hi,

If his performance is so poor, you can assign another capable person for the same work/project. When he feels that he is not recognized, he will leave the organization eventually.

Holding salary is inhuman. Furthermore, he can challenge for his salary, not for his recognition.

From Sri Lanka, Ratmalana
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