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Hi All,
I work for a company in the construction industry. We have had a problems of under performance by some of our employees who were hired on a fixed monthly salary. Management has now decided to move all the employees to task rate and and i have been asked to write a letter notifying the employees that their current contract will be terminated in two weeks time and the new terms implemented. May you please assist me to draft such letter. All the affected employees have been advised and are also waiting for this documentation.

Dear Friend
The service of contract employees should also be governed by the terms of appointment order issued to them. If provision is there in appointment order to terminate the service of any employee on poor performance or under performance, then you can invoke such clause and terminate the services of such employees. On the other hand, if general clause of termination of employees is there by giving one month notice or payment in lieu of notice, you can terminate the services of employee if their performance is found unsatisfactory by giving them one month notice or by paying one month salary in lieu of notice so the issue will be settled.

I am fully agreed with Mr Rao....Please go as per the termination clause mentioned in their appointment letter. I will add one thing more... Supreme court opined that you can not terminate your staff with a simple note ( State Bank Of India Vs Santosh Kumar ). So termination of a group of staff can give you some legal pain..
To avoid all these hazards , please try if you can manage to get resignation letter from them...It can be a good option....otherwise give them one month or two months notice ( as mentioned in the appointment letter ) or give them one / two month salary in lieu of notice...
I also faced the same situation where four employees has been resigned...After they got full and final payment, we got a court notice ..after 5 years of court they proved before the court that they are forcefully resigned ....You know court always favour the employees....

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