Legal Notice from Probationary Sales Manager: How Should the Company Respond?

Legal Notice from a Senior Sales Manager on Probation

A Senior Sales Manager, who was on a probation period of six months, was found to be non-performing according to the assured terms in attaining his target. He did not achieve even a percent of the set target. His non-performance in generating any kind of revenue or business for the company for two months was communicated to him via emails and phone calls, which led the management to hold his salary.

This gentleman stopped attending duty because his salary was withheld due to non-performance. Above all, he has sent a legal notice to the company for his claims.

My Query:

1. Is the gentleman right in issuing a legal notice to the company while on duty?
2. Should the company reply to his notice by itself or through a legal advisor?
3. Can he put forth a claim when neither he has resigned nor the company has terminated him?
4. Is the company liable to withhold his salary on the grounds of this legal notice (undated) being served while on duty?
5. Can his notice be treated as misconduct and fraudulence while on duty?

Regards

It appears that your company has mishandled everything, beginning from recruitment to the removal of the Senior Sales Manager (SSM). If the SSM did not perform, then a senior person could have called him, understood the reasons for his failure, and asked him to submit his resignation in a personal meeting. Instead, your company informed him through mail and put his salary on hold. Any employee, whether a manager or otherwise, is entitled to receive a salary as long as he/she is on the company's payroll. Putting a salary on hold for non-performance is a gross neglect of the Shops and Establishment Act or Factory Act. Secondly, you are not clear about the status of the SSM. It is neither a resignation nor termination. You cannot run company affairs by straddling between two unknowns.

At this stage, call the SSM to the office, clear his dues, and resolve the matter. Issuing a legal notice from your side would be retaliatory. You have many other things to focus on. I recommend not wasting time on this unwanted activity. Dealing with the SSM should not be your primary concern; your main focus should be providing the best product or service and delighting your customers.

Lessons from the Incident

Let us consider this incident from a management science point of view. The incident reflects a gross failure of your recruitment mechanism. How did a candidate get selected who did not perform even one percent? Who is responsible for recruiting this type of candidate? When the personnel handling recruitment are not trained in "Interview Handling Skills," such failures occur. It would be beneficial to train your seniors, including the MD, in interview handling skills as soon as possible. Running a business incurs various hidden costs. Consider this as the "Cost of Poor Recruitment" and move forward. However, if you do not train your seniors in interview handling skills, be prepared for the recurrence of these costs.

Disclaimer

The heading of your post is "Expert Advice Required." Advice does not always come alone; it is occasionally bundled with criticism. This has been happening since time immemorial. Therefore, no complaints will be accepted for the critical evaluation of the incident.

Thanks,

Dinesh Divekar

Your official relationship with the Sales Manager commenced with the appointment letter. Read the appointment letter and see clauses regarding performance or non-performance, as the case may be. This gentleman stopped attending duty because his salary was kept on hold on the grounds of non-performance. Above all, he has sent a LEGAL NOTICE to the company for his CLAIMS.

Query on Legal Notice and Salary Withholding

1. Is the gentleman right in issuing a Legal Notice to the company WHILE ON DUTY? (Nothing wrong in his actions.)

2. Should the company reply to his notice by itself or through a Legal Advisor? (Hire an advocate for replies.)

3. Can he put a claim wherein neither he has resigned nor the company has terminated him? (Pay of an employee cannot be stopped.)

4. Is the company liable to lien his salary on the grounds of this legal notice (undated) being served while on duty? - NO.

5. Can his notice be treated as MISCONDUCT and FRAUDULENCY while on duty? Big NO. It is his legal right to take legal action for his pay.

When the Sales Manager's performance was seen to be poor, was there any review or caution given to him? It is not misconduct. You need to sit with him, hear him out, and then decide about his pay and his continued working with the company. Legal proceedings will only help lawyers become richer.