If an employee is terminated from the services due to poor performance, is the organization supposed to pay 3 months' advance salary legally from the day of his termination?
The employee was given 15 days of PIP to improve performance, and when he failed to do so, he was relieved from his duties. He was handed all the documents and salary until his last working day.
Please let me know if there are any legal complications involved here.
From India, Bangalore
The employee was given 15 days of PIP to improve performance, and when he failed to do so, he was relieved from his duties. He was handed all the documents and salary until his last working day.
Please let me know if there are any legal complications involved here.
From India, Bangalore
Hi, As per the terms of employment he should be given minimum 1 month salary even though 15 days prior PIP was given.
From India, Madras
From India, Madras
This case appears prima facie illegal and unjustified if he is a 'workman' under the ID Act. For proven misconduct in the domestic enquiry held as per the law, for a dismissal, no notice period is required except that all his legal dues ought to be paid within the next working day. Instead of terminating as you did, would it not be better to have obtained his resignation? It is a win-win situation for both—you preempt legal exposure, and the employee leaves with no blot on his career.
Regards,
Vinayak Nagarkar
HR Consultant
From India, Mumbai
Regards,
Vinayak Nagarkar
HR Consultant
From India, Mumbai
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