Navigating Labor Law: How to Handle Claims of Pressure After a Sales Resignation

What if a person in sales does not perform well and resigns on his own due to non-performance, and then moves to the labor court with a claim that he was pressured by the organization? What should be the way to address this issue? What could be the process to resolve the problem?

On the basis of non-performance, any organization can terminate an employee by giving notice. If the employee resigns and goes to the labor court, then he must submit proof of being pressurized. If he has proof, it is an illegal activity, and he can file a claim.

We have issued him the show cause notice twice for his non-performance. In the notice, we informed him that if he is unable to perform, we will consider alternatives to his position. We also asked him to reply to the show cause notice, which he accepted to do, or else his salary will be withheld. In this situation, are we in a strong position or not? Is it appropriate for us to respond to the inquiry by attaching supporting evidence?

Hi,

When an employee works for an organization, he has to be compensated. If he is not performing and still continues to be on the payroll, there is a problem with the organization. Before termination, it has to be proven that he is not performing, and his argument should be heard (principles of natural justice).

Therefore, talk to him and resolve the issue.

Murali.

Re: Labour Law Issue:

1. Once the employee is not performing as per your expectation/organisation, what steps have been taken by your organization?

2. Issuing a show cause notice is not sufficient.

3. Working in the organization without compensation is not at all accepted.

4. Did you provide sufficient time/opportunity to perform well/as per the expectation of the organization?

Consider this, so that such incidents should not happen further.

Secondly:

If you have given notice to your employee, did you follow the notice period of one month/two months or whatever it is? If yes, then you need not worry.

Thirdly:

He is under pressure to perform well. Once he is not performing as per the expectation, and the same has been communicated to him through a show cause and notice, it is well understood that if he is not performing well within the stipulated period, he can be terminated. It is better if he resigns.

Clear all his dues immediately and ask him to withdraw the application from the labor court for an out-of-court settlement.

Thanks and regards,

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I understand that you don't have any labor consultant, which is why your harshly written letter to him indicates pressure on the employee. The employee will definitely win the case. Can you please send a copy of such a show cause notice to the forum so that we can provide you with proper suggestions accordingly.

Shish Uniyal
Compliance Consultant
09811681660