Can a Sales Executive Be Terminated After a PIP Despite Receiving an Increment? Seeking Advice on Company Policy

Case of Sales Executive's Performance and PIP

I have a very interesting case and need your guidance:

A Sales Executive with a CTC of 6.5 lac was a top performer in one division but has been shifted to another division. Unfortunately, the current division was not performing well in that market, so his performance was significantly affected. The market did not respond well to this division due to the company's own system and process, including appointing the wrong distributor. Both the Manager and Sales Executive have reported this issue to higher management for immediate remedies, but they never received a response. As a result, sales numbers gradually declined. The Sales Executive was demotivated but was making efforts to improve the market situation. All these challenges stemmed from company policies. Despite this, the higher management suggested putting the Sales Executive on a PIP (Performance Improvement Plan) for 90 days. During this PIP period, a matrix was used to evaluate his performance. The Management also promised to assist by appointing the right distributor. However, when the initial PIP period ended in Dec '13, the Sales Executive failed to meet the performance criteria due to the Management's failure to appoint a distributor. His PIP was extended by another 60 days, with management promising to appoint a distributor within a week. Once again, when the extended PIP period ended in Feb '14, the company still had not appointed a distributor. The Sales Executive's Manager did not provide any feedback on the extended PIP. Surprisingly, the Sales Executive received an increment in Mar '14. In Jun '14, the HR manager suddenly recalled his PIP and informed the Sales Executive that he had failed, leading to termination.

Questions:

1. Can a Sales Executive be put on a PIP consecutively twice?
2. If the extended PIP period ended in Feb '14 and an increment was given in Mar '14, can HR recall the previous PIP failure and terminate based on that?

Seniors, please assist in this situation.

Regards

At the outset, let me show my empathy for your friend. What has happened with your friend is quite unfortunate. Few companies are very good at ruining their employees' careers. Anyway, you have asked two questions. Check their replies in *italics*:

Question 1: Can a Sales Executive be put in PIP consecutively twice?

*Yes, anyone can be put in PIP twice. It is at the discretion of management. Nevertheless, in the case at hand, management was also equally responsible for not appointing a distributor in the given time period.*

Question 2: If the extended PIP period was over on Feb '14 and an increment given on Mar '14, then can HR recall the previous PIP failed and on the basis of that terminate?

*In a large number of companies, HR does not have a voice of its own. They fulfill the whims and fancies of the top management. In this case, it appears that HR is at the forefront; however, someone else is shooting while keeping the gun on HR's shoulder.

This appears to be an unprofessional company. Therefore, there is nothing wrong if incidents of this kind happen. Tell your friend to handle the matter judiciously. HR has only called and told that they have the right to terminate. Let your friend explain his position. Let your friend be polite and not lose his cool. Let us find out what HR does.*

All the best to your friend.

Regards,
Dinesh V Divekar

Thank you a lot for your suggestion. Following things developed later. My friend has been called to the Gurgaon office, and the HO has provided him with a to-and-fro ticket on the same day. He has been asked to resign, and they tried a lot to pressure him to sign the resignation letter. He didn't sign, so they terminated him. His termination letter reached him after his return from Gurgaon. He immediately replied to HR to know the reason for termination. HR has replied it's because of a non-performance issue. So now, please suggest how he can get justice.

Regards

Dear Friend, I had given my reply to your post on 15-06-2014, and you have come back on 15-02-2015, which is precisely eight months later. You have given an update, but one important thing that is missing is the date of termination. When your friend was terminated, you have not mentioned it.

Sales Executive Termination Process

If your friend was a Sales Executive, then I doubt whether any person was reporting to him further. Therefore, immediately after termination, he should have approached the labor officer of the area where the office is located. If not satisfied with the decision of the labor officer, he could have given the lawyer's notice.

Thanks,
Dinesh Divekar

The company terminated the employee due to performance issues. In this case, the company is asking if he will not be eligible to receive retention money. Is that correct?

Thank you.