Can My Company Terminate Me for Non-Performance During an Industry Slowdown?

Dear Members,

Could you please share your views on the following:

Termination for Non-Performance During Industry Slowdown

Can any company terminate an employee for non-performance when the entire industry is slow in Q1 and no other colleagues have met their Q1 targets? In my case, I have been a top performer for the last couple of years, but due to the current economic conditions, the business is not performing well this fiscal year.

Due to direct or indirect pressure from my bosses or office politics driven by egos, I have submitted my resignation in writing to my immediate supervisors and received acknowledgment of receipt. In the resignation letter, I have clearly stated my intention to serve the notice period of 3 months.

However, I have heard from colleagues that the company intends to terminate me immediately to make way for a new employee. There have already been instances of mistreatment towards me.

I have been with the company for 4.5 years and am currently in my notice period. According to my appointment letter, I am required to serve a notice period of 3 months or pay the equivalent in basic salary if terminated for non-performance. Two years ago, the company changed its policy to disallow buyouts or payment in lieu of notice period.

Could you please advise me on whether the company can issue a termination letter citing reasons such as non-performance, instead of a resignation acceptance letter, despite my commitment to serve the notice period?

Regards,
Venkatesh

After reading your post, I assume that you gave your resignation letter first, and then the company decided to terminate you or provide you with a notice of termination. If this is correct, they cannot do so since you were the first to resign. What they are doing is illegal. Did they provide you with any evidence or prior notice regarding the performance issue? My assumption is, if you worked there for 4.5 years and they just discovered that your performance is not up to par, that is total BS. They are asking for trouble. Inform them that they cannot treat you poorly. If you feel mistreated, let your HR Manager know, and I recommend documenting everything and keeping a copy. This is clearly not an issue of your performance.

Hope this helps.

Regards,
Mohan

Thank you for your reply; it has given me some morale and consolation. Unfortunately, in the branch, we do not have any HR. The company has several divisions, each with its own Divisional HR and a common Corporate HR, all located at the Head Office in Mumbai.

Frankly speaking, the company is very reputed in India, as well as very old and traditional. Despite having good HR policies, people manipulate these policies to their advantage. For example, promotions are given to individuals who always agree with their superiors, regardless of performance. Here, HR plays a minimal role, if any. To be precise, there is no effective HR. HR is only involved in recruiting freshers from colleges. After that, everything is in the hands of local managers, and the feedback they provide about an individual carries more weight.

Let us see what will happen. As you have pointed out, I have submitted my resignation and informed them about serving the 3-month notice period. However, they are mistreating me by not granting leave for attending interviews. I have one offer in hand and aim to secure 1 or 2 more to choose the best option.

Thank you for your response.

Regards, Venkatesh

As Mr. Mohan has rightly advised, after submitting your resignation, the company cannot terminate you, rendering any attempt to do so null and void. This situation can be likened to sentencing a deceased individual to hang until death.

Therefore, do not worry, complete your notice period, and maintain your composure even if they mistreat you. Aim for a dignified exit from the company.