How Do I Draft a Termination Letter for an Employee with Consistent Performance Issues?

Dear Seniors, I request you to send me the termination letter format as my manager has asked me to draft a termination letter for one of the employees in our company. The employee has been consistently not punctual and has not been adhering to instructions from his seniors, which includes failing to complete work on time.

Regards

As per the statutes of the Indian government, you can't simply terminate someone only because they are not punctual or have not completed work on time. Please ensure you consider the legal aspects before proceeding with any termination.

Thank you.

I will check it and reply to you soon. Please send me the format of the termination letter.

Thank you.

Steps for Employee Disciplinary Action

1. First, there would be a verbal warning, and have it signed to acknowledge that he has received the verbal warning. Create a form to keep a record for the future. If he does not comply, proceed to step 2.

2. Issue a formal letter of warning regarding his job performance. Despite previous counseling and a verbal warning, there has been no observed improvement in your work. This letter serves as a final reminder that the company will not hesitate to terminate your employment without notice if there is no progress.

3. If there is still no improvement, a letter of termination will be issued. It is important to follow this standard practice and maintain proper records for documentation purposes.

Please advise on what I should do if any employee refuses to receive the warning letter issued to them.

I agree with Mr. Parab. There are stages defined by relevant laws such as the Industrial Dispute Act or similar laws based on state amendments. Therefore, immediate termination without providing an opportunity goes against natural justice and is illegal.

Steps to Follow Before Termination

Firstly, you must serve a warning notice, followed by a strict warning notice. Subsequently, issue a show-cause notice to allow the employee in question to respond. If the explanation provided is unsatisfactory, proceed with a charge sheet based on the evidence available, followed by a domestic inquiry. Once the findings of the inquiry officer are received, only then should any punishment be imposed on the employee in question.

Regards,
Kiran Kale

As noted by my colleagues, follow the principles of natural justice. How long has the person been working with the company? Try to train him in-house before deciding on letting him go. This will set a good precedent.

For the next instance of late coming, speak with the person; he may be going through a bad phase. Habitual late coming can lead to penal action.

In Indian conditions, terminating an employee for a single offense is not easy unless he is a terrorist! You have to build up cases against an employee, giving ample opportunities for him to change his attitude, behavior, etc. It is not so easy, especially in India and Indian companies. You should have a long view, and even if the employee, after termination, moves the court, you must have sufficient evidence to justify your action in a court of law. Otherwise, the company may be asked to reinstate the employee again, and damages/compensation for damaging his reputation may have to be paid. In this case, you have to feel your way cautiously. Patience is needed. Give him sufficient opportunity to mend his way. If, despite all your encouragement and opportunities, he still remains incorrigible, then by giving a last warning, you can proceed to terminate his services. But before doing such a thing, always consult your company lawyer. Otherwise, be prepared to face repercussions later on.

Regards,
M.J. Subramanyam, Bangalore