Hi All, I am working with a KPO or BPO as an HR & i want help in making a "New Termination Policy" as we have a probation policy of 6 months but now my senior wants me to apply a policy where we can terminate a new joinee (poor performer) after 1 month by paying 50% of the CTC decided in offer mail if he/she is not performing upto the mark.
Want to know more about how can we implement such a policy according to Labor Laws.
Any replies will be appreciated. Thanks & Regards

From India, Ahmedabad
Industrial Relations And Labour Laws
Vaishalee Parkhi
Hr Consultant & Trainer
Management Consultancy
Hr Consultant

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You can mention as a specific clause in the appointment order stating that the employee is under training for a period of one month and if the employee is unable to cope up with the job requirements, he or she will be discharged from service with immediate effect and would be paid 50% of CTC.
From India, Mumbai


in all situation where the employer's action goes against the employee, whether it would be performance issue, salary reduction, termination , lay off or other issues, there must be proper correspondence, through Show cause notices, and allowing sufficient opportunity to the employee to put his views in front of management. Thereafter the power lays in hands of management to accept the points of employee or not, nobody can force the management in probation period at least

If the process is not maintained, then employees would feel insecure and it may dent the performance of establishment.

in lack of such communication from the employer side, if the punished employee steps for legal relief, then mostly it goes against the employer. so our advice would be always to step with proper proceedings

Vaishalee Parkhi

Hello Megha,

I have few points to suggest in the case.

I think the period of 1 month is too short... isn't it? Till the employee settles down and understands his/her work volume, adapting to seniors' nature and working style, reporting mechanism etc.... a considerable period has to be given to analyse his true potential.

Where we give 6 months probation period, it should at least be 3 months - if at all it has to be there. Moreover, this particular clause needs to be explained at the time of interview itself /prior joining of a candidate to maintain transparency.

I am thinking about a situation how candidate will be able to establish himself successfully knowing the fact that he has only 1 month to portray his abilities...

Think well before you finalize a particular course of action. Best wishes.

From India, Pune

Normally a letter of appointment shall contain a clause that " you will be under probation for a period of six/twelve months during which your services hall be terminated without any notice and without assigning any reasons therefor." In this situation, quoting this clause you can terminate the employee without saying any reason. But care should be taken to ensure that you mention a "Reason", say, poor performance. If you do it, the termination will cause stigma and it can be challenged. Obviously, if the performance is bad, you should document it and give the employee an opportunity to be heard of his bad performance. Without giving him an opportunity to improve his performance you cannot terminate him even if he is under probation. Paying 50% or even 100% of salary as compensation is different issue.
From India, Kannur

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