Notcie Period/Payment: Termination

Hi, Iam from a large proprietorship company in Delhi.

Recently some employees are hired in our company across various functions.

As per co policy, offer letter is given only after joining. The offer letter carries standard terms of termination for all levels/function. It says, co. can terminate any employee any time without assigning any reason with one months salary/notice whereas if the employee wants to leave he/she will have to pay last 5 months salary.

We want to terminate contract of couple of employees (middle-senior management) as they are not able to perform as well as not able to adjust culturally. These employees are nearly 3 months old and despite some reminders, they are not able to show improvement.

We want to terminate the contract without paying one month salary/notice as we have given them verbal indirect indication on few occasion.

If we terminate contract of these employees without notice, can they go to labor court and challenge termination? what consequence we will have to face as an company?

some employee raised an objection over the working hours, is minimum 9 hrs/day and 54 hrs/week a kind of violation of shops & establishment act?

Please advise as how should we handle the situation. we have to act fast so I will really appreciate your quick response.

Thanks Chetan

Have you given the Notice of Non performance to the said employees, if not, you have to give them the show cause notice and wait for the reply. If the reply is not satisfactory give them another notice, mentioning termination if not improved within stipulated time period.
Before hand what is the probation period of this employees, if they are under probation and if your termination clause mentions termination without notice during probation then please specify to advise appropriately.

Thanks Saji.
Our appointment letter says any time without assigning reason.
Anytime means be it probation or after probation. The probation period is of 6 months.
So as per the appointment letter we can terminate any time without assigning any reason. Not given any written notice but indicated verbally about the expected performance.

Sir,the issue is that you have to pay them their termination dues as per the law.they will sue you if you don't. remember its you who wants to terminate them for their incompetency

If it is mentioned in the appointment letter that termination without assigning any reason whatsoever and if the same has been accepted by the employee, then there is no need to worry. But again as a professional approach it is advisable to give notice in written before termination.

Thanks Saji, but the point here is termination without one month notice/salary as mentioned in the appointment letter. Only verbal indication given. Can employee challenge termination without notice period/salary?

In the appointment letter one month salary is specified at the time of termination, so you have to give the salary legally as mentioned in the Appointment Letter.