Can we terminate a permanent employee purely on the grounds of non-performance or low-performance (performance is not upto the mark). Is there any mandatory procedure to follow. Any counseling, notices to improve the performance are required before terminating the employee. There are no service rules. One-month notice is required for either resignation or termination as per the appointment letters.
From India, Hyderabad
I wonder whether your organisation has any policies and procedures. You have not given enough info about the nature of your organisation and, hence, comments can only be made in general.
Any action you take should be seen to be applied fairly and equitably. I suggest that you take a look at the following websites
Disciplining and Terminating Staff
Adjunct Law Prof Blog: Dismissed employee precluded from litigating her termination because of her failure to exhaust her administrative remedies
Have a nice day

From United Kingdom
Dear Rayalu,
I agree with Govind Singh.

There are 2 aspects I wish to elaborate/highlight in his comments--which haven't come out.

1) Point-4: "There are many instances when Employee come out as a good performance". As the HR manager, you not only ought to BE impartial but also LOOK to be impartial [something that's said of the law--justice should not only be done but look to be done]. There are many instances where the line managers had implicated someone who criticises him/her--basically ego clashes. Or there could group politics or [in India] caste feelings, etc,etc. And the only way the manager can deal with the issue-without getting effected-is non performance. You need to differentiate between the PROJECTION & the ACTUAL scenario.

2) Point 6: "employee will not feel like unheard or cheated". if you don't take care of the fairness aspect, that could cost much higher to the organisation in the long run. I have seen quite a few companies getting a bad name due to unfair/arrogant treatment of people with them [some even @ the recruitment stage]. And @ the end of the day, you not only loose good employees, but also miss out good prospective employees form joining you. Just remember that " World is always a small place" and you never know when things will bounce back on you/your company and in what way.


From India, Hyderabad
Dear Rayalu
I am aslo agree with govind singh
as per standing order u not terminate any employee without following procedure under the act.and opportunity to defend himself,follow the nature of justige otherwise it will be illegal termination.

From India, Mumbai
Well, on Non performance, we provide time for the person to make necessary changes, and improve himself.
If training is required (which is understood durign teh performacne evaluation), we provide sufficient training. After that, Post training - evaluation is conducted.
Well, much in advance we inform the person if he has to improve and we also mention the specified time within which we are expectign a change.
If there is any difference of opinion he is requested to meet the HR and the Manager concerned, so that if he needs additional time, even that is provided.
Later.... if there is still no improvement, he is terminated based on grounds of non-performance. We also provide him the notice period salary..

From India, Madras
Dear Rayalu, in this case (scenario) we take all necessary data/figures/info for his superior's and check the same in comparison to organization standards, if the performance of employee is well below expectations/standards, we issue a warning letter to employee, mentioning his last three month's target v/s achievement figures, which makes him understand the GAP in his performance.

We call it as PIP Performance improvement plane, where – in HR manager along with his line manager meet the candidate to make him understood his problem/concern area’s and advice on improvement. We give employee a minimum one month time to improve his performance and give him a fix target/deliverables to be achieved during the period, in spite of same is the employee is not able to achieve his target we can go for termination.

This process gives a very fair chance to employee to understand his lacking/problems and work out on improvements of same; this way employee gets a fair overview of his performance and understood his responsibilities towards organization!

From India, Mumbai
Dear Rayalu,
As posted by the other members, it is also necessary to build a record to prove that we have given enough time to improve performance. You may keep the records such as warning letters, periodical performance assessments etc.

From India, Pune
Dear Rayalu,
Counseling on the performance is required but this is only a theoretical way. Changing his/her reporting manager is a good option and then analyzing his performance min for 15 days. Before taking any decision.


From India, New Delhi
hi Rayalu,
it is very much necessary that HR should give the employee an opportunity for the performance.
first of all try to find out the reason that why the employee's performance is very less
then after the reason is known, counsell the employee for it indirectly.
then also if not incraesed, then directly conusell the employee in a team of his managers, HR, HID etc.
if then also it doesn't work well, then give a notice period with a target.
if not acheived then you can terminate the employee.
but do remember that for all these steps please keep the hard copy/soft copy documentation of all the things so that after termination employee cannot do any type of case against the company

From India, Delhi
Hello Sumit,
The answer to your query depends on YOU. Are you looking for a LEGAL/AS-PER-RULES answer/solution OR a FAIR answer/solution? Now don't tell me "both are the same"--they aren't.
If you are looking for a FAIR answer, you will still adopt the same modus-operandi that you would follow for a permanent employee. Only the figures/emoluments, etc will vary as per the rule-book.
If you are looking for the Rule-book answer, you know my answer:icon1:.

From India, Hyderabad

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