Dear All,
Learned Questioner's problem is that he wants to include 'inefficiency' as one of the reasons warranting the ultimate punishment of dismissal in his organization's separation policy and for this he needs a judicial precedent - that's all, I think. First and foremost, hiring is not for the purpose of firing.Second, for all our actions in our social life, howsoever trivial or important it may be, we cannot have judicial precedents; what is essential is a judicious approach.The reason is very simple - man is a social animal and the behaviour of animals is mostly unpredictable - so is the case of human behaviour too. That is the reason for a spate of Case Laws on the same subject-matter with the passage of time.I also searched but in vain to find out some Case Laws in this regard. My suggestion, therefore, would be to decide the issue judiciously and dispassionately rather than looking out for supportive Case Laws. As Dinesh rightly pointed out, in nutshell, the contract of employment is a contract of performance. A certain performance is expected of from both the parties viz the employer and the employed. When there is perceptible deficiency, appropriate remedial actions should be in place and here the adjective 'appropriate' should have all the flavours- moral, legal, empathy and equity. Efficiency is a relative term hence we can not define it precisely.But, inefficiency can not be its antonym because it simply brings out the absence of certain attributes of efficiency. That's why inefficiency is not held to be a misconduct.However, an inefficient employee who has become a dead-wood over a period of time can not be continued in the organization. On its realization, if the exit is voluntary like suo moto resignation, voluntary retirement on the announcement of a scheme by the employer etc., are there and if it is by the employer, he can not simply send the inefficient employee out on this score alone as a measure of punishment for the relationship of employer-employee is greater than the terms of the contract of employment. So, the separation, if not ceremonious, should at least be not unceremonious. This is the reason for holding such terms as subjective termination of employment on the fixed notice period or monetary compensation in lieu thereof are unteneble and unjust.Hence the question what is the way out for an employer in such a situation still remains at large. My considered opinion is that you should try your best to bring the employee up by the positive ways suggested by some members and if still no improvement is noticed reassign his responsibities befitting his efficiency. Just like aging process, inefficiency does not set in suddenly but gradually.