I have joined a company after a successful online interview and was given the position of National Head. The position was based in a different city. The CTC offered to me was accepted, and on the day of joining, I completed my joining formalities by providing them with a list of documents along with the originals. I joined the main office on the specified date. My work was appreciated by everybody for some days as I was able to provide some solutions in a cost-effective manner. Verbally, I was given a commitment about providing accommodation (Guest House) in the city. I was staying in a hotel until the accommodation was confirmed. I kept asking about the company guest house, but suddenly the company started refusing the same, and they also refused to pay the hotel bill. In a few days, the HR head informed me that the company is not happy with my performance and hence the CTC is revised to 50% less as the profile given to me is basic and cannot afford such a high salary. This performance issue was unjustified as I haven’t interacted with the MD of the company much, and without any work assigned to me, how can he judge the performance level? I tried to convince all my reporting (Dual Reporting) and the HR head via mail, but to date, I haven’t received any reply.
Please advise how I can proceed further on this, as the interview panel was happy with my knowledge and they had cleared the suggested designation.
Thanks
From India, Mumbai
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Please advise how I can proceed further on this, as the interview panel was happy with my knowledge and they had cleared the suggested designation.
Thanks
From India, Mumbai
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Breach of Contract and Legal Remedies
This is not a matter of performance but a breach of contract. Since you fall under the category of an employee with managerial rights, you cannot seek protection under labor law but can seek remedy from a civil court as there has been a violation of the terms of your appointment. As the employment contract is unconditional and does not include any clause stating that your pay would decrease if your performance declines, you can fight against this. Start by discussing the breach of contract with HR and inform them that if it is not rectified, you will take legal action.
Potential Implications of a Termination Clause
The potential implications could involve a termination clause within the employment contract. If there is such a clause, the employer may have the ability to terminate your employment without providing a reason, especially if there is a probation clause. If poor performance is cited as the reason for termination, they must offer you a chance to improve. However, after around three months, they can still decide to let you go. If this occurs during your probation period, you may have limited options. Even if you are confirmed in your role, a termination clause specifying a notice period, such as three months from either party, could allow the employer to terminate your employment by providing the notice or paying you for the notice period. In such cases, the law may not offer protection as it is outlined in the contract.
Regards,
Madhu.T.K
From India, Kannur
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4526This is not a matter of performance but a breach of contract. Since you fall under the category of an employee with managerial rights, you cannot seek protection under labor law but can seek remedy from a civil court as there has been a violation of the terms of your appointment. As the employment contract is unconditional and does not include any clause stating that your pay would decrease if your performance declines, you can fight against this. Start by discussing the breach of contract with HR and inform them that if it is not rectified, you will take legal action.
Potential Implications of a Termination Clause
The potential implications could involve a termination clause within the employment contract. If there is such a clause, the employer may have the ability to terminate your employment without providing a reason, especially if there is a probation clause. If poor performance is cited as the reason for termination, they must offer you a chance to improve. However, after around three months, they can still decide to let you go. If this occurs during your probation period, you may have limited options. Even if you are confirmed in your role, a termination clause specifying a notice period, such as three months from either party, could allow the employer to terminate your employment by providing the notice or paying you for the notice period. In such cases, the law may not offer protection as it is outlined in the contract.
Regards,
Madhu.T.K
From India, Kannur
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Breach of Contract and Employment Terms
This is not a matter of performance but a breach of contract. Since you fall under an employee with managerial rights, you cannot get the protection of labor law but can seek a remedy from a civil court as there is a violation of the terms of appointment. Since the contract of employment is unconditional and without any clause that you would get lesser pay once your performance comes down, you can fight for that. First, talk to HR and apprise them that there is a breach of contract and in case it is not rectified, you will move to court.
Probable Implications of Contract Terms
There can be a termination clause under any contract of employment. In this case, there can be. If there is a probation clause, then the issue will be very easy for the employer; they can just terminate the service without giving any reason for termination. Having given the reason of poor performance, they are bound to give you an opportunity to improve it but still after about three months, again they can initiate the same thing, that is asking you to go. If so, you have no other way but to go. You cannot challenge it if it happens during your probation. In case you are confirmed, then also if there is a termination clause which says, say three months' notice from either side, then they can give you three months' notice and terminate you or even pay three months' salary and ask you to go. Here also, the law will not protect you because it is there in the contract.
Regards,
Madhu.T.K
Dear Madhu Sir,
Thanks for your reply. I am not aware of any HR policy or any termination clause of the company as till date I haven't received my Appointment letter. I just signed my Offer letter along with the required documentation and references. In my case, there is no termination letter given to me but a lowering of my CTC to 50% of what I had signed. The non-performing issue was verbally told to me by the HR. I was surprised to see how a person can judge one's capability in just 15 days of joining, where I was in the phase of understanding the company's system first.
Thanks
From India, Mumbai
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This is not a matter of performance but a breach of contract. Since you fall under an employee with managerial rights, you cannot get the protection of labor law but can seek a remedy from a civil court as there is a violation of the terms of appointment. Since the contract of employment is unconditional and without any clause that you would get lesser pay once your performance comes down, you can fight for that. First, talk to HR and apprise them that there is a breach of contract and in case it is not rectified, you will move to court.
Probable Implications of Contract Terms
There can be a termination clause under any contract of employment. In this case, there can be. If there is a probation clause, then the issue will be very easy for the employer; they can just terminate the service without giving any reason for termination. Having given the reason of poor performance, they are bound to give you an opportunity to improve it but still after about three months, again they can initiate the same thing, that is asking you to go. If so, you have no other way but to go. You cannot challenge it if it happens during your probation. In case you are confirmed, then also if there is a termination clause which says, say three months' notice from either side, then they can give you three months' notice and terminate you or even pay three months' salary and ask you to go. Here also, the law will not protect you because it is there in the contract.
Regards,
Madhu.T.K
Dear Madhu Sir,
Thanks for your reply. I am not aware of any HR policy or any termination clause of the company as till date I haven't received my Appointment letter. I just signed my Offer letter along with the required documentation and references. In my case, there is no termination letter given to me but a lowering of my CTC to 50% of what I had signed. The non-performing issue was verbally told to me by the HR. I was surprised to see how a person can judge one's capability in just 15 days of joining, where I was in the phase of understanding the company's system first.
Thanks
From India, Mumbai
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Understanding Employment Contracts and Probation Periods
When an offer letter is signed as accepted, it becomes a contract, and there is no need for any separate appointment order. It is true that nobody can judge the performance of an employee in less than three months, which is why a probation period is always stated in the appointment order.
Verbal Communication and Job Security
Verbal communication regarding your performance indicates that your position is going to be eliminated, and it is a caution that you should find another job immediately. HR is only communicating the decision of the management and has nothing to do with policy drafting. Therefore, you may need to find an alternative.
Salary and Accommodation Issues
They will not pay you the salary as per the offer letter and will not cover the hotel costs either. This is done just to provoke you so that you will leave. As previously mentioned, you can either fight for the breach of contract or leave, accepting the fact that every decision carries an element of risk. The decision to leave a good company to join another also involves risk. If your values do not align with the culture of the new organization, you may have to leave, causing irreparable loss to yourself.
Termination Clauses and Natural Justice
On the other hand, if your offer letter contains a termination clause, the company can initiate termination as per that provision. In this scenario, the principles of natural justice cannot be expected.
Regards,
Madhu.T.K
From India, Kannur
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When an offer letter is signed as accepted, it becomes a contract, and there is no need for any separate appointment order. It is true that nobody can judge the performance of an employee in less than three months, which is why a probation period is always stated in the appointment order.
Verbal Communication and Job Security
Verbal communication regarding your performance indicates that your position is going to be eliminated, and it is a caution that you should find another job immediately. HR is only communicating the decision of the management and has nothing to do with policy drafting. Therefore, you may need to find an alternative.
Salary and Accommodation Issues
They will not pay you the salary as per the offer letter and will not cover the hotel costs either. This is done just to provoke you so that you will leave. As previously mentioned, you can either fight for the breach of contract or leave, accepting the fact that every decision carries an element of risk. The decision to leave a good company to join another also involves risk. If your values do not align with the culture of the new organization, you may have to leave, causing irreparable loss to yourself.
Termination Clauses and Natural Justice
On the other hand, if your offer letter contains a termination clause, the company can initiate termination as per that provision. In this scenario, the principles of natural justice cannot be expected.
Regards,
Madhu.T.K
From India, Kannur
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PERFORMANCE EVALUATION FORM.doc
Performance Evaluation Guidelines.ppt