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Ash Mathew
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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.
29th March 2009 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
29th March 2009 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.

29th March 2009 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.
29th March 2009 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..
30th March 2009 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!
30th March 2009 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.
30th March 2009 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.

30th March 2009 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
31st March 2009 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:.
31st March 2009 From India, Hyderabad
Hi sumit,
it totally depends on the organization that how the organization treats to the employees.
if the employee is not permanent then also you can follow the above mentioned steps that I had written in this.
but you can also cut short the steps and without any counelling, you can give a target and then if not acheived then you can terminate on non performance ground.
but i recomend to keep the documentation of all the steps that you follow.
31st March 2009 From India, Delhi
Hi Sumit,
I assume the employee is not permanent as he is yet to be confirmed. In that case, the probation period itself is the time u give for performing within "Acceptable" standards.
So if he is still in probation and has not showed the signs of an average performer, and if this makes the management think on termination - there is no need for paying the notice period salary, or making the person work for the notice period.
This is what we follow.
31st March 2009 From India, Madras
Surely you can terminate a permanent employee for non performance. However you must build up a record of his specific non performance and advisories given to him from time to time for improvement so that he can not allege mala fides on the part of Management.
Terminate him as per terms and conditions of his appointment. Also check your coverage under ID Act and Sect. 25 (f )
Best of Luck
31st March 2009 From India
Dear Rayalu,
As said No Company follows the 2-4 weeks guideline nor an intimation, they fired not based on poor performance, its all a Employee, Employer Mutual relation..Sharing the views in the work environment though affects the employees job.
31st March 2009 From India, Madras
i am a permanent employee and was asked to resign the organisation with in 5 days under non- performance.i asked them to put that in email so will resign which my HR is not ready.Should i resign or look for the same viq email.
26th July 2010 From India, Hyderabad
Termination of employment for non-performance of an employee can be done. One has to just and fair in doing this. The employee must be given ample opportunity to improve his performance.
One of the best practices I have come across is during the annual performance appraisal the performance of the employee is openly discussed with him and when the performance has been assessed as poor, a letter giving the rating and advising for improving the performance is given. If the employee does not still improve even after two annual appraisal discussion, at the end of the third annual appraisal he is asked to look for a job and leave. He will be advised not to attend office and will be paid the salary for three months which is the notice period as per the terms of employment. If the employee resists this, he will terminated with 3 months notice salary.
bgramesh, hosur
23rd April 2016 From India, Vellore
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