Termination Of Employee On Basis Of Non Performance

Hi All,
I need your inputs on the legal formalities to be considered for terminating an employee on the basis of non performance.
We are basically a IT Product company based in hyderabad but the office is registered in chandigarh.
In our employment contract for permanent employees we mentioned that for termination of employment (on performance basis) the minimum notice period will be given as per the Indian Labour law but we did not mention how much duration it is..
I happened to join here recently, am not sure what is the minimum duration for termination as per Indian Labour Law.
We followed the process of intimating the employees about his non performance and given enough time for improvement also still we have not seen any improvement then we have no other option except to execute the termination process.
Request you to provide your inputs on what are the laws to be considered in this case.
Thanking you in advance for all your inputs.
Thanks,
Anil

Law does not compel an employer to keep feeding a non performer. You can send him out. But what is required is to document his performance or rather non performance. For that you have to follow a face to face performance appraisal and app[raise him of the consequences. Still if the employee is not performing, you can terminate his service. If you can give him one month notice or pay in lieu of notice, that would be proper, that he can not say that he was denied justice.
Regards,
Madhu.T.K

Dear Friend,
As rightly mentioned by Mr.Madhu building the file is more imporatant. If you have already communicated to the employee on various occassions & recorded accordingly then you can initiate action.
To avoid any further implications and in the interest of the employee better to obtain the resignation letter from him and relieve by paying one month notice pay and close because he has to work some where and the termination will have lot of impact on his future hence better explain him properly and complete the process. If he refuses to submit his resignation then terminate.
Regards - kamesh

Dear All,
What if in this case we had entered into a service agreement for say 5 years with that employee. Could you please elaborate the effecting clauses of the service agreement also if possible.
Regards,
Saras Kumar

No bond will say that the employer will be bound to keep a non performer. Always the bond will be in favour of the employer also.
Regards,
Madhu.T.K

please tell me without any notice compant terminated our permant employed. non performance Base.

If you wish to termination someone on a non-performance basis, then you have to document each and every step of his performance/ non-performance.Give him an opportunity to improve the situation. His non-performance should not be above the level of other employees.
Please check www.labourlawhub.com for more information.

Dear Madhu Sir,
Please explain me the following:
Suppose some workers are engaged through contractor and they complete 2 years of service. Now the company decides to sack the contractor as per the agreement. The contractor does not have any contract in other organisation.
So, my question is that whether in this situation can the employees of the contractor raise an Industrial Dispute under section 2(a) of ID act. As the contractor can not employ them as he does not have any other organisation. Will the contractor be liable to pay the compensation as per section 25F. Moreover, all the workers have lost their job due to non renewal of the agreement.
Please explain parawise.
Regards
Dinesh Kumar

Employees of the contractor are appointed by the contractor only and remains the employee of the contractor. They are only 'deployed' at the business of the principal employer.
The contractor has to pay the statutory dues like ESI, PF etc. However, in case a contractor fails to pay such dues, then automatically the liability shifts on the shoulder of the principal employer.
But in relation to employment, the employees remain the employees of the contractor and disputes can be raised against the contractor only (although principal employer can be made party) under the ID Act.
Check my blog www.labourlawhub.com for more information.

The compensation if any payable under any law, like ID Act, should be paid by the contractor and the disputes of retrenchment arising out of termination of contract by the principal employer should be attended by the contractor only.
Madhu.T.K