Dear Nilanchala Das, there is nothing wrong with terminating services if the performance is unsatisfactory. However, under the provisions of Article 025 of the constitution, following the principles of natural justice is mandatory. To adhere to these principles, it is essential to conduct a domestic enquiry.
Therefore, you should not include a statement in the appointment letter such as "if the performance is found to be unsatisfactory, then services could be terminated without notice and without assigning any reasons." This practice is illegal.
Thanks,
Dinesh Divekar