Dear All,
Please suggest on below :
I have a person in the one of the team and he is not performing upto the mark.
At the time of joining we have given him good amount of bonus with clause of his continuity in his job for min. 2 yrs.
Now if we plan to terminate him based of his performance, then can we demand from him to repay the pro rated bonus to us for the pending tenure?
Please suggest how to handle this? If we can, is there any legal document of this or is this the company call?
Warm Regards
Rashmi Rohilla
From India, New Delhi
1Please suggest on below :
I have a person in the one of the team and he is not performing upto the mark.
At the time of joining we have given him good amount of bonus with clause of his continuity in his job for min. 2 yrs.
Now if we plan to terminate him based of his performance, then can we demand from him to repay the pro rated bonus to us for the pending tenure?
Please suggest how to handle this? If we can, is there any legal document of this or is this the company call?
Warm Regards
Rashmi Rohilla
From India, New Delhi
Hello Rashmi Rohilla,
Did anyone from HR speak to this employee--to get to the bottom of HIS reasons?
I am sure he will have his side of the story--like they say: a coin always has 2 sides.
Pl post the reasons HE gave for the situation--sometimes what is 'observed' in an employee COULD be the consequence of someone else's action rather than the act in itself. Hope you get the point.
I am sure you know that in the long-run, it is always less expensive to retain an existing employee than fire him/her & hire a new one [NOT counting the possibility of forgetting the bonus you paid him]..
Rgds,
TS
From India, Hyderabad
Did anyone from HR speak to this employee--to get to the bottom of HIS reasons?
I am sure he will have his side of the story--like they say: a coin always has 2 sides.
Pl post the reasons HE gave for the situation--sometimes what is 'observed' in an employee COULD be the consequence of someone else's action rather than the act in itself. Hope you get the point.
I am sure you know that in the long-run, it is always less expensive to retain an existing employee than fire him/her & hire a new one [NOT counting the possibility of forgetting the bonus you paid him]..
Rgds,
TS
From India, Hyderabad
First off all , have you mentioned the clause in your agreement that if organization decides to terminate your services prior to contract period then you are liable for repaying the bonus amount.
Find out the reasons for non performance of the candidate. As company has hired the candidate by paying bonus that means candidate must have relevant experience and capability.
Even after several meeting and instructions, candidate didn't improve his performance then put him on "PIP" i.e. performance Improvement plan. Even after that things don't work properly then do the needful as per the management's decision.
From India, Pune
Find out the reasons for non performance of the candidate. As company has hired the candidate by paying bonus that means candidate must have relevant experience and capability.
Even after several meeting and instructions, candidate didn't improve his performance then put him on "PIP" i.e. performance Improvement plan. Even after that things don't work properly then do the needful as per the management's decision.
From India, Pune
Hi Rashmi,
In addition to what has already been suggested I think that your company can take a call on this matter. You need to clarify certain things first;
1. Person is not performing;
a. Was the expectation of the company informed or KRA issued to him at the time of his joining?
b. Does your company have specific policy / method of measuring performance.
c. Was that communicated to the person in question very well at the time of appointment.
d. Have you already intimated him verbally and in writing to improve his performance?
c. If yes, is the reason provided by him satisfying and looked upon as improvement in company culture?
2. Giving Bonus at the time of joining & Clause of 2 years commitment;
a. Bonus connected to commitment??? How does bonus amount to a commitment of specific period?
Also, it is strange that your company takes the risk of hiring new candidates with such liability (You have not mentioned the cadre of employee. What I interpret is - when you've paid such a huge amount as bonus, company was confident on his performance. At the first place, you need to revise this policy. What if the candidate absconds after receiving the amount.)
b. Was it given in writing or was it a verbal intimation to the candidate before joining?
c. Pl refer your policy related to this. Is there anything mentioned that if the employee resigns before the end of committed period or if the performance is not found to be good he'll be liable for penalty as breach of contract. (Well I am sure not, as this is your question)
If the answer to all the question is yes, then you can ask him to pay back the prorata amount by issuing a letter.
Regards,
Hiral
From India, Ahmedabad
In addition to what has already been suggested I think that your company can take a call on this matter. You need to clarify certain things first;
1. Person is not performing;
a. Was the expectation of the company informed or KRA issued to him at the time of his joining?
b. Does your company have specific policy / method of measuring performance.
c. Was that communicated to the person in question very well at the time of appointment.
d. Have you already intimated him verbally and in writing to improve his performance?
c. If yes, is the reason provided by him satisfying and looked upon as improvement in company culture?
2. Giving Bonus at the time of joining & Clause of 2 years commitment;
a. Bonus connected to commitment??? How does bonus amount to a commitment of specific period?
Also, it is strange that your company takes the risk of hiring new candidates with such liability (You have not mentioned the cadre of employee. What I interpret is - when you've paid such a huge amount as bonus, company was confident on his performance. At the first place, you need to revise this policy. What if the candidate absconds after receiving the amount.)
b. Was it given in writing or was it a verbal intimation to the candidate before joining?
c. Pl refer your policy related to this. Is there anything mentioned that if the employee resigns before the end of committed period or if the performance is not found to be good he'll be liable for penalty as breach of contract. (Well I am sure not, as this is your question)
If the answer to all the question is yes, then you can ask him to pay back the prorata amount by issuing a letter.
Regards,
Hiral
From India, Ahmedabad
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