Immediate Termination for Poor Performance: Do Employers Owe an Extra Month's Salary?

Dear Sir,

I just wanted to know if we have terminated the employee on an immediate basis due to his/her poor performance, is the employer liable to pay 1 month extra salary to the employee?

Thank you.

You are required to pay for the notice period (say one month as it transpires in this case) where there is a condition of service for payment of the notice period, and the termination of service is with immediate effect. The payment is necessitated irrespective of the reason for the termination of service.

What is written in the employment agreement or offer letter? Follow what is written. Normally, when you terminate without notice, one month's wage is given.

Yes, the employee is entitled to the notice payment as mentioned in the appointment contract.

If there is such a clause in the contract of service or letter of appointment, then you have to pay. Check it and follow the procedure laid down in the contract/letter of appointment.

B. Saikumar
HR & Labour Relations Advisor
Navi Mumbai