Can We Provide a Letter for an Employee Leaving Due to Project Closure? Seeking Advice and Drafts

Dear All,

One of our employees has been asked to leave the company due to unsatisfactory performance. The company doesn't want the employee to suffer and has assured that we will provide help in all possible ways.

Now, the employee is requesting a letter from the company stating that due to the closure of a particular project, they are no longer required, and the company is giving them a 40-45 days notice. The employee will submit their resignation letter once the company issues such a document.

Please assist with the following:
- Can the company provide such a letter?
- If yes, could someone please send me a draft of such a letter?

Thanks,
Mansi

Non-performance can be a genuine reason for termination of employment. But before doing so, you should have given him chances to improve. That should have been properly documented. If your communications with the employee have been verbal, it may create problems in the future. Therefore, I advise that you should not terminate him at present but issue a letter stating that his performance is not up to the expectation and he should improve himself within a period of 30 days. You should also say that his performance will be reviewed after 30 days and if not found satisfactory, the management would be constrained to terminate his service.

Again after 30 days, you should do the appraisal and if he has not improved give him another letter asking him to show the expected performance within two weeks. After two weeks you can give him a letter quoting the letters already given and saying that his services remain terminated due to non-performance. Normally, before such a letter, he will resign and go!

Now, if you give him a letter stating that he is terminated due to completion of the project, he may take it as a tool against you. If the project is not completed or if any project hardly exists, the question of termination of service due to completion of work for which he is appointed does not arise. Besides, that kind of termination is called retrenchment. Certainly, if he is on a Fixed Term Contract for a particular project with a clause that his services would be terminated automatically on completion of the project, then without following the provisions relating to retrenchment in the Industrial Disputes Act, we can terminate his service. But if actually there is no project or if his appointment is not on FTC and if the project is still incomplete, termination would not be justified.

You can also do one thing. You can advise the employee of the consequences of a termination letter from the company, saying that with that, his career would come to a standstill because nobody would give him a job. Otherwise, if he is submitting a resignation letter and is relieved, he will get a clear service certificate which will add value to his career. Speak like that and convince him to submit a resignation. If he is adamant that "he should be terminated," then issue him a warning letter for non-performance and follow the principle of natural justice.

Regards,

Madhu.T.K

Hi Madhu,

Thank you for your response. I am already aware of the process you have mentioned. Unfortunately, there has been no written documentation for non-performance. He has already received a lot of verbal feedback, and there was a discussion between him and the MD around January. The MD asked him to look for a job and has given him time until the 28th of February. Since the decision has been made by the MD, I am limited in what I can do.

The employee is requesting a letter to make it easier for him to secure a new job. He believes that providing a resignation letter would make it difficult for him to find a new job, especially given the reason for leaving is non-performance. I also do not want him to be unemployed or face any issues as he has a good nature.

The employee started on May 1, 2010, and has not received any confirmation letter to date. Would it be acceptable if I provide him with a letter as he requested and ask for a no pending dues letter along with a resignation letter?

Thank you,
Mansi

A simple process to follow is to ask him to resign on his own. Thus, you can simply provide him with a relieving letter. When a reference check is made, you can either tell the truth or say his skills did not match the role he was in.

Why are we apologetic for a non-performer? When we hire, we do give them ample time to prove themselves. If you want to be diplomatic, give him a letter stating that you could not match his skills and expectations. That's your choice.

Regards,
Shridhar

Please collect the resignation letter from him and issue him a service certificate along with a relieving letter. Ensure the full and final settlement is completed. At any cost, you must issue a letter terminating his service at this point.

Regards,
Madhu T.K