Can Employers Terminate Employees During Probation for Performance Issues? Let's Discuss!

Dear team,

I have attached an appointment letter for your reference. Please review it and provide guidance on the next steps.

I would like to know if an employee can be terminated during their probation period based on their performance.

Is there a clause in the appointment letter stating that the employee must give notice before resigning during the probation period?

If the employer does not require the employee to serve notice, will the employee still be entitled to the salary for the notice period?

Your support will be highly appreciated.

1. Probation period is the time given by the employer to the employee to understand his job, company policy, procedures, culture, and environment in an organization. It is also the time taken by the employee to understand his job description, department, HOD, and other colleagues. During the probation period, an employee can make mistakes, and instead of firing, the employer needs to counsel the probationer and slowly induct him into major responsibilities.

2. In the appointment letter, a notice period of 45 days is to be served, regardless of whether the employee is a probationer or a confirmed employee.

3. If the employer wants to terminate the services of an employee, the employer can make a payment of 45 days' salary in lieu of the notice period.

Thank you very much, sir, for your help. Is the employer bound to pay in lieu of the notice period if the employer wants to terminate an employee during the probation period?

Dear Mr. Nair,

Notice Period Policies

1) Is a 45-day notice period mandatory for both employees and the company, or can a company establish a policy regarding notice periods, such as no notice period, a one-month notice period, etc., during probation?

Company Notice Period Policies

2) Can a company establish a policy mandating a three-month notice period for employees who wish to leave the organization, while allowing no notice period or a 15-day notice period if the company decides to terminate an employee?

Termination Without Notice

3) Can a company terminate an employee, with several years of experience, who has been working for less than six months or is in probation, without providing notice or salary in lieu of immediate termination?

Please provide your insights on these queries.

Answer to Anonymous

1. The appointment letter is an employment contract to be entered into between the Employer and the Employee, with clauses to safeguard the interests of both parties.

If the appointment letter mentions a 45-day notice period, it is applicable to both the Employer and the Employee. If an Employee wishes to submit a resignation letter, they must serve a 45-day notice period. Similarly, if the Employer wishes to terminate the Employee's services, the Employer needs to pay 45 days' notice salary in the Full and Final settlement.

2. Not advisable. The notice period should be applicable to both the Employee and the Employer. However, the Employer can provide a reduced notice period to the Employee during the probation period. For example, if the notice period for a confirmed employee is 3 months, it can be reduced to one month for a probationary employee with the clause that if the Employee seeks separation during the probation period, they must serve a one-month notice.

3. The termination of an Employee is subject to the separation clause mentioned in the Employee's appointment letter.