surjeet-maan
Hi, Please let me know the criteria. I want a document in which it is mentioned that we can terminate a permanent employee on the basis of poor performance after sending two red emails to him/her.
Thanks in advance.

From India, Ambala
Dinesh Divekar
7884

Dear member,

Well gentleman, if you wish to terminate an employee on the grounds of poor performance, then the contents of the mail are more important than the colour 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 enquiry 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
surjeet-maan
Thanks for the reply Mr. Dinesh.
But I just wanted to know that if we can terminate a permanent employee on the abovementioned basis.
One of our employees' is not working upto our expectations and two written mails have sent to him regarding his poor performance. But after that also he is not performing well.
Can we terminate him?

From India, Ambala
nathrao
3131

"One of our employees' is not working upto our expectations and two written mails have 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 employee?
how long has he/she been employed with the firm?
To terminate an employee, laws of natural justice are to be followed,2 red coloured mails will not serve the purpose in any way.
On the contrary, this colour code can indicate that management has already prejudged the issue.
Call the employee and enquire 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 co workers,action can be considered.

From India, Pune
surjeet-maan
The employee was called to ask the reasons for the poor performance, but he did not justify it. Now, we have lost one of our client's due to his poor project performance. We have a policy document over which it is mentioned clearly that a person can be terminated on the basis of his/her performance and moreover, it is mentioned on our offer letter also.
Now, what can I do to resolve this issue,as we do not want him to continue with us.

From India, Ambala
vmlakshminarayanan
950

Hi,
How long the employee is working with you.?
Was he a good performer earlier and now not doing good ? If so what were the reasons behind towards decline in his performance. What was his explanation? Not clear.
If he is already been warned of his low performance then discuss with him. Encourage him to submit resignation and relieve him properly. In case of termination due to poor performance he cannot show the same it to his future employer. Hope you will be paying some money as per your employment terms( one month gross?). The same can be paid even if he submit resignation. However explain him whether he prefer proper relieving or termination and let him take call.
By collecting resignation letter it favours both parties involved and avoid unnecessary legal hurdles.

From India, Madras
rkn61
625

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 can not accept this and convince him to put down his paper so that in a friendly way the issue could be resolved amicably.
Second one is official way. Did you prepare his Job description and Key Result Area/Key Performance Area (JD and KRA/KPA). Did you issue him a copy and get acknowledged by him (by obtaining his signature on its copy? If yes, prepare a letter quantitatively measuring his poor performance and then issue termination letter alongwith his F&F settlement dues with one months' extra salary.
I recommend the first one suggested by me.
Thanks, regards

From India, Aizawl
jagadish347
4

Low efficiency is not misconduct,unless it is deliberate go slow,which is a misconduct.
In such cases domestic enquiry has to be held and it is to be established that poor performance is deliberate.Therefore in absence of enquiry,such termination would be illegal.Of course in case of probationers,poor performance can be a ground for termination and enquiry may not be necessary.
Poor performance would be a factor while considering promotion,increment etc.

From India, Pune
abhishek-tiwari3441579
1

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
Dinesh Divekar
7884

Dear Abhishek Tiwari,

Your reply has revived a thread almost after five years. Although, you have mentioned a list of the 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 have to 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, the employers were told to pay the 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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