Labour Law Advocate
Saurabh Katyayan
Senior Deployment Conaultant
+1 Other

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Severance pay from the company

My company is established under shops and Establishment Act and has over 2500 employees in the organisation.

I joined from 1st August 2016 and while being under probation 6 months, on 4th January 2017 they gave me a performance improvement plan pip - inability to clear which they told me that it would result in either Termination or disciplinary action.

I signed the PIP even when I was in probation period. Now after the PIP has been over they ask me to leave the organisation and refuse to pay me any severance pay.

As per the grade in my offer letter I am at assistant manager level of the company.

They told me that they will not pay my severance pay since I was already told about it, but will give me a clean exit from the company.

My questions are

-Is giving a PIP under probation period training is legal?

-My notice period under probation is for one month and post probation is 2 months, the confirmation is just 4 days away. Can you please guide me the sections under which I can ask my organisation to pay me my severance pay to sustain my next 2 months or more of livelihood.

Your help will be greatly appreciated.

As far as my knowledge is concerned, there is no mention of any PIP in labour laws. However, it seems there is no illegality in giving it to the employee so that they can improve their performance.
Since you are still in your probation period (4 days does not matter), you can only claim 1 month notice pay.

What was the period of PIP, as per your query it was handed over to you on January 4, 2017 and it is just 20 days to be very precise so how can a person improve within 20 days and is judged which is beyond my knowledge.
Friends; PIP is a company rule. In any case, employer is at liberty to ask employee to improve. If employer does not terminate the employee before the end of probation period, the employee is deemed to be permanent. Hence it is necessary to warn an employee before end of probation and terminate before the end of probation period. Whatever notice period is the only compensation the employee can ask for.
But the big question is, will the employer warn an employee and terminate the employee at the end of probation period, if the employee is good? Employees have to introspect and perform as the employer demands. There is no use quarreling with employer.
Vibhakar Ramtirthkar.

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