Can We Let Go of a Permanent Employee for Poor Performance Without Prior Warnings?

Can we terminate a permanent employee purely on the grounds of non-performance or low performance (performance is not up to the mark)? Is there any mandatory procedure to follow? Is any counseling or notices to improve the performance required before terminating the employee? There are no service rules. One-month notice is required for either resignation or termination as per the appointment letters.

I wonder whether your organization has any policies and procedures. You have not given enough information about the nature of your organization, and hence, comments can only be made in general. Any action you take should be seen to be applied fairly and equitably. I suggest that you take a look at the following websites:

[Disciplining and Terminating Staff](http://www.txstate.edu/effective/UPPS/upps-04-04-40.html)

[Adjunct Law Prof Blog: Dismissed employee precluded from litigating her termination because of her failure to exhaust her administrative remedies](http://lawprofessors.typepad.com/adjunctprofs/2009/02/dismissed-emplo.html)

[Employee Handbook](http://www.texasbarcle.com/CLE/site/LawOfficeMgmtBrochures/EmployeeHandbook.pdf)

Have a nice day.

Simhan

Dear Rayalu,

I agree with Govind Singh.

There are 2 aspects I wish to elaborate/highlight in his comments—which haven't come out.

1) Point-4: "There are many instances when employees come out as good performance." As the HR manager, you not only ought to BE impartial but also LOOK to be impartial [something that's said of the law—justice should not only be done but look to be done]. There are many instances where the line managers had implicated someone who criticizes him/her—basically ego clashes. Or there could group politics or [in India] caste feelings, etc., etc. And the only way the manager can deal with the issue without getting affected is non-performance. You need to differentiate between the PROJECTION & the ACTUAL scenario.

2) Point 6: "Employees will not feel unheard or cheated." If you don't take care of the fairness aspect, that could cost much higher to the organization in the long run. I have seen quite a few companies getting a bad name due to unfair/arrogant treatment of people with them [some even @ the recruitment stage]. And at the end of the day, you not only lose good employees but also miss out on good prospective employees from joining you. Just remember that "The world is always a small place" and you never know when things will bounce back on you/your company and in what way.

Regards,
TS

Dear Rayalu,

I also agree with Govind Singh as per the standing order; you should not terminate any employee without following the procedure outlined in the act. Employees should be given an opportunity to defend themselves, and the termination should follow the principles of justice; otherwise, it will be considered an illegal termination.

Sachin :)

Well, on non-performance, we provide time for the person to make necessary changes and improve themselves. If training is required (which is understood during the performance evaluation), we provide sufficient training. After that, Post-training evaluation is conducted.

Well in advance, we inform the person if they need to improve and mention the specified time within which we expect a change. If there is any difference of opinion, they are requested to meet with the HR and the Manager concerned so that if they need additional time, that can be provided.

Later, if there is still no improvement, the individual is terminated based on grounds of non-performance. We also provide them with the notice period salary.

Dear Rayalu,

In this scenario, we gather all necessary data, figures, and information for his superior and compare it to organization standards. If the employee's performance falls well below expectations or standards, we issue a warning letter to the employee, citing his achievement figures compared to his targets for the last three months. This helps him understand the gap in his performance.

We refer to this process as a Performance Improvement Plan (PIP). In this plan, the HR manager and the employee's line manager meet with the employee to help him understand his areas of concern and provide advice on improvement. The employee is given a minimum of one month to enhance his performance and is provided with specific targets and deliverables to achieve during this period. If, despite this support, the employee is unable to meet the targets, termination may be considered.

This process offers the employee a fair opportunity to recognize his shortcomings, address them, and work towards improvement. It provides the employee with a clear assessment of his performance and helps him understand his responsibilities towards the organization.

Dear Rayalu,

As mentioned by other members, it is essential to maintain a record to demonstrate that sufficient time has been provided for performance improvement. This record may include warning letters, regular performance evaluations, and similar documentation.

Regards

Dear Rayalu,

Counseling on the performance is required, but this is only a theoretical way. Changing his/her reporting manager is a good option and then analyzing his performance for a minimum of 15 days before making any decisions.

Regards,
Ruchika

Hi Rayalu,

It is essential that HR provides employees with opportunities to improve their performance. Firstly, it is important to determine why an employee's performance is below expectations. Once the reason is identified, counsel the employee indirectly. If there is no improvement, then counsel the employee directly in the presence of their managers, HR, HID, etc. If performance still does not improve, establish a notice period with specific targets. If the targets are not met, termination may be necessary. It is crucial to maintain documentation at each step to protect the company in case of any legal actions by the terminated employee.

Hello Sumit,

The answer to your query depends on you. Are you looking for a legal/as-per-rules answer/solution or a fair answer/solution? Now, don't tell me "both are the same" -- they aren't. If you are looking for a fair answer, you will still adopt the same modus operandi that you would follow for a permanent employee. Only the figures/emoluments, etc., will vary as per the rulebook. If you are looking for the rulebook answer, you know my answer.

Regards,
TS

Hi Sumit,

It totally depends on the organization how it treats its employees. Even if the employee is not permanent, you can still follow the steps mentioned above. However, you can also shorten the steps and without any counseling, set a target. If the target is not achieved, then you can terminate the employee for non-performance reasons. I recommend keeping documentation of all the steps you follow.

Hi Sumit,

I assume the employee is not permanent as he is yet to be confirmed. In that case, the probation period itself is the time you give for performing within "Acceptable" standards. So if he is still in probation and has not shown the signs of an average performer, and if this makes the management consider termination - there is no need to pay the notice period salary or make the person work for the notice period. This is what we follow.

Hi,

Surely, you can terminate a permanent employee for non-performance. However, you must build up a record of his specific non-performance and advisories given to him from time to time for improvement so that he cannot allege mala fides on the part of management.

Terminate him as per the terms and conditions of his appointment. Also, check your coverage under the ID Act and Section 25(f).

Best of luck,
Jai.

Dear Rayalu,

As no company follows the 2-4 weeks guideline nor provides an intimation, they do not fire based on poor performance. It is all about the mutual relationship between the employee and the employer. Sharing views in the work environment, though, can affect the employee's job.

Thank you.

I am a permanent employee and was asked to resign from the organization within 5 days due to non-performance. I requested them to send this request via email so that I can resign, but my HR is not willing to do so. Should I resign or should I wait for the same request in writing via email?

Termination of Employment for Non-Performance

Termination of employment for non-performance of an employee can be done. One has to be just and fair in doing this. The employee must be given ample opportunity to improve their performance.

One of the best practices I have come across is during the annual performance appraisal, where the performance of the employee is openly discussed with them. When the performance has been assessed as poor, a letter giving the rating and advising on improving performance is given. If the employee still does not improve even after two annual appraisal discussions, at the end of the third annual appraisal, they are asked to look for a job and leave. They will be advised not to attend the office and will be paid the salary for three months, which is the notice period as per the terms of employment. If the employee resists this, they will be terminated with three months' notice salary.

Regards, bgramesh