Dinesh Divekar
Business Mentor, Consultant And Trainer
Bharat Gera
Principal Hr Consultant
[email protected]
Assisstant Manager-hr

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Hi Everyone!! I am working in a middle level company with employee strength of 100 employees. Kindly let me know that what are the labour law clauses that we need to follow if we terminate any employee on grounds of non-performance?
Can we actually do that and how?
Please Help....

From India, Delhi
Dear Aastha,
You could have little more information about the employee whom you want to terminate. What type of job he does? How many years has he worked? Have you provided any training to augment his performance? Did his manager provide him any support to elevate his/her performance? Is it that his/her performance good earlier but lately it has been nosedived?
Before terminating, you need to conduct the domestic enquiry. In the enquiry, you need to give chance to employee to defend his case. In the enquiry, if the non-performance is proved then you may take disciplinary action and it could be termination of employment also.
The another factor that is worth considering is beyond your query. Taking action against the under-performing employee is fine but was it wrong recruitment? If yes, then who is responsible for the wrong selection?
Dinesh Divekar

From India, Bangalore
Hi Dinesh,

Sure. He is a sales associate. Its been 8 months that he is working in our organisation.

I have a domestic call center which is selling insurance policies. These sales associates are provided with monthly targets and they need to fulfill that. The numbers met by them of their targets indicates the level of performance. Anyone who fails to meet the targets are put on PIPs- Performance Improvement Period. 1st PIP is for 1 month and 2nd PIP is for 2 weeks. Anyone who fails in both the PIPs are asked to leave on the basis of non-performance.

In regards to this employee, he has failed in both PIPs and data regarding his reports has been shared with him.

Please note- These sales associate are first and foremost being put to training sessions containing sales training and product training which lasts for minimum 2weeks. His performance always been average but is now failing to meet the targets.

Majorly in sales each employee is being judged on the basis of their targets. Attrition rate is quite high among them as pressure to get the sales is on higher side.

So, if in case we are asking any sales associate to leave then what should be the notice period we should provide to them keeping in mind the labour laws of the country?

Please help..



From India, Delhi
Please study Industrial Employment Standing Orders Act. You will get answers.
From India, Thane
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