I hired a sales manager from 1st september in my company. His offer letter mentioned the following:

"........You shall be on probation period of Six months from the date of joining. Depending upon your performance during probation period, the Management may reduce/extend the probation period, if required in writing. During the probation period, the company may for any reason whatsoever terminate the employment without serving any written notice. On completion of the probation period, your services may be confirmed by the Company by issuing the Confirmation letter. However, till the Management issues you confirmation letter confirming your services, you shall be deemed to be on probation.In this regard, the decision of the management shall be final and binding upon you. During the probation period in case you wish to leave the service, one month prior notice or one month pay in lieu of notice is mandatory......."

His performance is nil in last two months wherein during interview he had promised a minimum sale of Rs 20 lakhs every month.

From India, Noida
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Labour Law Index

The guy is under probation. Also your offer letter is correctly drafted. You can let him go, but follow your states shops and establishment act while relieving him of duty. There is no problem from the point of Industrial Standing order or Indian Contract Act.

From India, Kolkata

Just mention in the letter 'you will cease to be employee after working hours of dd as per clause ___', to be on the safer side don’t use the term terminated in the separation letter.
From India, Mumbai

Dear sir,

The terms and conditions mentioned in employees appointment letter will prevail over Standing Orders, service rules, is settled law and there has been various rulings from Apex court.You just execute the action without any doubt. Call the guy, give him a plain sheet , explain the situations that no company can grow without getting outputs in return. You should communicate what you have to do now and why?Possibility is that he will put in his papers but if he does not issue a signed termination letter there itself without letting him go..

The text of Termination letter is also as under:

" You are under probation period for Six months and you have been in the organization for almost two months after joining us. Since, your performance is not satisfactory, management has decided to terminate your services with immediate effect , as per clause.... of your appointment letter dated.............

Please submit No dues certificate from concerned departments to enable us square up your accounts."""

Thanks and best wishes,


Such type of actions are also compulsory making organizations grow and stay ahead in the market .

Hope, you are fine with this.

RDS Yadav

Labour Law Advisor

Navtarang HR Services

From India, Delhi

Hello Sir
Its easy job because you have drafted the offer letter very well
Now prepare a caution notice to him and give him the caution notice which will clearly specify that the company is not satisfied with your performance So if this is continued further you will terminated from the job .
Keep the signed caution with your end and handover a photo copy to him
So after signing and receiving the caution notice too if he does the same then you can blindly terminate him
This caution notice which he signs will be the right for you to terminate him legally if he follows the same

From India, Bangalore

Hello All
Pls tell me if any one is under probation period weather A company
Can terminate any time after mentioning the clause in offer letter that department may terminate for reason whatsoever? What does that means whatsoever weather poor performance or nil performance. Is it
enough to terminate the employment by saying your performance is nil no need to issue any warning letter & conduct the proper enquiry why performance is nil or poor, does it not effect the employee
Who is under probation period. Can we put any clause in offer letter weather valid or non valid,
Your views pls
Amit Gupta

From India, Jaipur
Soumitra Sengupta

I don't think termination even when one is on Probation would be advisable without establishing the cause of termination. In this case the Sales Manager be issued a Letter on Company Letterhead "cautioning" him on his "under-performance/non-performance" first and allowing him time to improve upon and produce results. Else, if it is referred to Court of Law, "Principle of Natural Justice" is sure to prevail over the "terms of appointment" and the Letter of Termination would sure be declared as "Null & Void".
Also, while drafting a Termination Letter 'you will cease to be on employment after working hours of dd as per clause ___' is a better proposition. The letter should also take reference of "Cautioning Letter" as above issued to the employee.
Soumitra Sengupta

From India, Pune
It’s so nice getting expert advise from the domain experts. My cell and whatsapp number is 96504 followed by 45498. Would love to talk to you folks. Best Regards
From India, Noida

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