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. Terminating 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 as a part of the working environment. If the problem still continues, then I feel that some attritions are good attritions.

Nadeem

Hi, Aarti...

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

Subject: Can Suspension be Revoked with Retrospective Effect

Dear Friends,

One of our employees was placed under suspension for some misconduct. He remained under suspension for nearly a month. After a proper inquiry, he was found guilty of the charges imposed on him. However, keeping in view his first misconduct, he was given one last chance, and accordingly, his suspension was revoked with the condition that he would be entitled only to a subsistence allowance for the suspension period.

The issue arises as the approval from the competent authority for revoking his suspension was obtained, but the revocation order was delayed by nearly a week from the date of approval due to some reasons. As a result, the individual continued to remain on suspension.

Now, can we revoke his suspension from the date on which we received the approval? Also, will he be entitled to full wages retroactively from the backdate?

Please help.

Vinay D. Dun

You can revoke suspension retrospectively. The only thing is that with that previous date (of revocation), he will be eligible to receive full pay even though he has not attended work. Even if he is acquitted of charges, he will be entitled to receive the salary difference, i.e., the actual salary he would have received if he had been working minus the subsistence pay. In your case, I understand that the allowance paid during the suspension period will be considered a punishment, and you will not pay the difference since the allegations have been proven.

Regards,
Madhu.T.K

Dear Ma'am,

Terminating the employee is the last effort of the employer prior to 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

Retrospective effect means with effect from a previous date. If we revise the salary of employees with effect from a previous date, say, effective from 1st October 2010, we call it as "the salary is revised with retrospective effect from 1st October 2010." In a similar style, in this thread, I have used the term to say that suspension can be withdrawn with effect from a previous date.

Regards, Madhu.T.K

Dear All,

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.