Struggling Employee After 5 Years: How Can We Find a Fair Solution for Everyone?

We have an employee who has been working with us for about 5 years, but we find no improvement in his performance despite repeated warnings. At long last, management is considering salary reduction or termination of his employment.

Please suggest some other ways that could help and work well for both the employee and management.

Addressing Employee Underperformance

For five long years, you have endured your employee's underperformance. It is strange to note that you could continue with him for so many years.

You mention that you have given him repeated warnings. Were these verbal warnings or written ones? If they were written warnings, have you issued a hard copy to the employee and maintained its office copy? If yes, based on the evidence, you may issue a show cause notice asking him to explain why administrative action should not be initiated against him for his underperformance. If the reply is unsatisfactory, you may proceed with a domestic enquiry. During the enquiry, give the employee a chance to defend his position. If the underperformance is proven, you may take disciplinary action against him, which could result in either demotion or termination.

Considerations for Demotion

If the employee is demoted, you may reduce his designation and salary. However, ensure that while reducing his salary, the basic pay is maintained at the same level.

Thanks,
Dinesh Divekar

Thank you very much for your quick reply.

All the earlier warnings sent to him were verbal, but the employee concerned has acknowledged those warnings in written form, admitting his performance issue.

The suggestion of making a debit note for his mistakes was also proposed to management instead of a pay decrease. However, it was not accepted as the prime complaint against him is time wastage and the need for regular supervision in his work, which is insubstantial.

Kindly advise.

Give one to three months' notice with strict advice to improve performance and depute a supervisor for weekly feedback. Failure to comply will result in losing his job.