Can We Legally Terminate an Employee for Non-Productivity or Absenteeism? Seeking Advice

Dear All,

I want to know, can we terminate an employee on the basis of non-productivity or absenteeism by issuing a warning letter? Is it necessary to mention this clause in the appointment letter? If not mentioned, is termination possible? Please advise on legal aspects.

Regards,
Aarti

Subject to provisions of the Industrial Disputes Act, an employer is in a position to terminate the service of an employee for any reason, which includes non-performance. Therefore, if you find that an employee is not productive or their performance is not up to expectations, you can terminate them. However, before doing so, the concerned employee should be given an opportunity to improve. A warning, as you said, is sufficient, but to ensure the termination follows the principles of natural justice, make sure that the employee has been given two or three opportunities to improve performance but has failed.

Regards,

Madhu.T.K

Yes, you shall terminate an employee for non-performance and irregularity. This would normally be included in appointment letters. All you have to do is give him a written warning letter/memo two times before the termination letter. This is only for the better prospect.

I do agree with the quotes of my other friends. Termination should be the last option. Before that, we need to educate them about the importance of time and regularity, as well as make them feel like a part of the working environment. If the problem still continues, then I feel that some attritions are good attritions.

Regards,
Nadeem

Terminating is the easiest step that an employer can take towards a non-performing employee. Have you heard of a method called Feedback Management? Give him/her feedback about the performance, let them know where they are wrong, and how they can improve. Give them a chance to perform better. As an HR professional, let's support them. Yes, and then if you see there is no improvement, termination is the last resort.

Regards,
Archna

Terminating an employee is the last effort of the employer after giving a warning to improve performance and rectify faults. If the employer does not give chances to rectify faults, how could it be possible to manage effective HR policies? If the employer has already given a chance to rectify faults, and the employee has not learned from prior suggestions or warnings, then it would be possible to terminate without giving a warning again.

Regards,
VIKAS

Termination of an Employee: Key Considerations

Termination of an employee is one of the HR risks. An employee can be terminated at any time if he/she is not performing or due to gross misconduct. However, two things you should keep in mind: procedural fairness and the reason for termination should be justifiable.

If the employee is not performing, he/she should be notified in writing and given time to improve. If he fails to improve after all necessary efforts such as coaching and other training, he should be terminated on the grounds of poor work performance. Do not forget to evaluate the employee's performance.

Thank you.