Dear Senior,

What is the legal process for terminating or releasing an employee on grounds of poor performance, especially if the employee is not yet confirmed in the company? I need this information urgently, hence requesting all to please reply ASAP.

Thanks & Regards,
Anuradha

From India, Pune
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Under such circumstances, this is what you can do:

Prepare a warning letter stating that he needs to improve his level of performance, and a two-month deadline is provided. HR and the TL should inform the employee of the specific areas in which he must enhance his performance. The employee should sign the letter, and a copy should be filed in their respective file. The employee should understand that failure to meet the TL's expectations may result in a termination letter being issued.

After the two-month period, HR should conduct a review. If the TL is still unsatisfied with the employee's performance, a second warning letter will be issued, allowing the employee one month to demonstrate improvement.

If there is no noticeable change by the end of the additional month, a termination letter can be issued, explaining that despite two warnings, there has been no improvement in performance, leading management to the decision of termination.

From India, Madras
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I do agree with the steps suggested by Maliniluky. However, one also needs to be doubly sure about the existing performance criteria and standards in the organization. Is there any performance standard being observed in the organization, or is the guy being made a scapegoat under the pretext of performance? Generally, the issue does not lie solely on performance but could be related to something else, such as an ego clash with seniors. The role of HRD should not be reprimanding; rather, it should be developmental. You need to introspect on what is wrong with the organization and why the employee is unable to perform. Consider other options like coaching, mentoring, and counseling. If those methods do not work, then explore the alternative of offering the employee other opportunities in life. I do not agree that performance could be the sole reason for termination. If performance is indeed the issue, HR should be the first to take responsibility as it failed to recruit the right person with the right competencies.
From India, Delhi
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Hi Anuradha,

The correct process is defined in the appointment letter given to the employee. Give them the notice pay amount and ask them to resign. Provide them with the termination letter effective from the specified date, giving notice and explaining the reason for non-performance in writing.

If the employees are on probation, and there is no notice required (depends on the appointment letter), you can ask them to leave without paying anything. Perhaps you can give them a month's time to find a job (in case your company feels the responsibility), but ensure to document everything in writing.


From India, Delhi
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From India, Pune
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Hi Maliniluky, Abhishek and Poonam! Thanks for the input, yes, we will consider all the points you suggested before take any final action. Regards Anuradha
From India, Pune
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Anuradha,

Just a small suggestion. Termination is a wrong term to use unless the employee has violated an organizational policy, legal, or similar bindings.

Performance is relative, however poor it is, and also dynamic based on business needs. Often, we see that the best resources (best again is relative here) fail in needy situations.

Also, a consistently poor performer is brought in by the HR team after filtering through a qualifying criteria. So he/she remains the same even if the organization does not see value coming out from the person. So the organization can initiate a Performance Enhancement Program and assign a favorable and supportive mentor to guide, advise, and monitor the progress this resource is making. In my experience, this works wonders as it challenges the individual to take a look at self from inside out and unleashes the capabilities within.

Practically, if this is not happening after 2-3 months of Performance Enhancement Program, it could be the case that there is incompatibility with the boss, team, organization policies, required technical skills, environment, salary, visible career path, clarity on roles and responsibilities, etc., in which case you could ask the resource to look at other suitable options that would give him/her enough motivation and ownership to perform better. Termination of an employee without a valid reason impacts the organization's reputation more than the individual. And organizations are not expected to insult/deplete the reputation of an employee on the grounds of poor performance. The organization is meant for employees to make a living, and not necessarily to make profits alone, as we are all often compelled to believe.

In conclusion, please avoid using the word "Termination" and the associated process. Trigger the process of "Resignation" instead, after convincing the performer on the several 'whys' he/she would have.

Hope you see value in the suggestion.

From United States, Ogden
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Hi Anuradha,

We are forgetting the basic things. The same guy is being interviewed and selected by the HOD or someone else who is responsible for his performance. If the guy is not yet confirmed, it means he is less than six months old, indicating that the selecting authority is unable to assess his competencies properly, and he is unable to meet his/her expectations.

Please clarify whether there is a monthly evaluation and feedback session. If that system is in place, then on a monthly basis, the HOD will communicate with the employee and obtain his signature. This way, the employee will be aware of his performance, put efforts into improving, and after completing six months, we should provide an opportunity for three more months on a PIP (performance improvement plan). Even then, if there is no improvement, then you can take action.

Termination should be a last resort. By terminating people, you are sending the wrong signals to other employees. When the process is transparent and structured, other employees will also perceive it positively.

In my opinion, employees join organizations to associate for longer durations. Most employees (more than 80%) leave organizations because of their bosses. Therefore, it's crucial to concentrate on this aspect. After putting in all efforts from our side, if the employee still cannot meet our expectations, then a decision to separate can be made.

Thanks and regards,
Kamesh

From India, Hyderabad
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Hi, it's the career of a person. I want you to study the root cause.

1) Is there a defined, measurable objective that was set and communicated to the employee?
2) Did he get adequate freedom and resources to reach the objective?
3) Can another average engineer have done the same?
4) Was he tried under another team leader?
5) Did the employee agree in a one-to-one meeting with the personal department that he could not perform up to the expectation that should have been achieved?

If all is okay, then there is no legal complicity, and he has to be asked to simply submit his resignation. Many times, I fear that adequate opportunity was not given to the employee to prove the management expectations.

From India, Madras
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I agree with Praveen and want to add that employee should also be given fair chance to grow. I have seen turning star performers to non performers as per organisations norms.
It’s all motivation...so before doing any adverse try to be fair with employee.

From India, New Delhi
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Hi Anuradha,

Please find a Corrective Action Protocol Document attached. This will provide you with a complete process for DAP, CAP, and EDP. As indirectly mentioned by a few experts here, the initial step should be to define performance, then benchmark it, and only after that, you can rate someone as poor, average, good, or excellent.

Regards,
Prashant Bhandarkar

From India, Mumbai
Attached Files (Download Requires Membership)
File Type: doc SOP on CAP_DAP_EDP Policy2.doc (269.0 KB, 315 views)

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Since the employee is on probation, on the day he completes his probation, issue him a letter stating that his services are no longer required due to his performance, which is not up to the mark. You do not need to request a resignation from the employee. However, through this discharge, the individual may find it challenging to secure another job. If he chooses to resign, promptly obtain his resignation letter and issue him an acceptance letter the following day. This process is fully legal.

Ravindra Chaubal

From India, Nasik
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Dear Madam,

Termination is not directly related to poor performance, I hope so. It comes to your mind because of various reasons. As many have suggested, you can enroll him in various training programs regarding the noted performance.

Yet, if he is unable to perform well, you could ask him about the problem, why he is not performing well. An HR manager should aim to reduce attrition, and termination is also considered as an attrition issue. If you terminate him, then it may be seen as a mistake in your selection process. So, I suggest you consider his termination and his future as well.

With regards,
Peter Kulandai.S
HR Executive

From India, Madras
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I have been following this discussion. May the experienced HR professionals respond to this? This is essential as any wrongful termination will lead to litigation, which can be avoided if proper guidelines are drawn. This is a very critical issue every organization faces. Hence, I request the experienced seniors to respond positively.

D. Thirugnanam

From India, Madras
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Dear Anuradha,

There are so many points which have been covered on this topic. I am sure you may have a fair idea. What you need to do is clarify if this employee has been given a fair chance to improve his performance. Is this consistent performance from the day he joined the company? Was there regular mentoring done by your QAs and your TLs for this employee before he fell into poor performance? Did you put him on a performance improvement plan? What action plan was taken against him before considering terminating this employee? I am 100% sure that no company can ask an employee to leave just because he was not performing. Please be more specific when you post such queries because we provide suggestions based on your post. You need to be more specific when it comes to such situations.

Regards,
Amaan

From India, Bangalore
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Dear Anuradha,

The best answer to your problem lies in the agreement entered into with the employee or his appointment letter. I am sure, in any of those documents, the provision of termination of his services without assigning any reason must be there. But still, as a safer side, better serve him/her with a show cause notice about his/her poor performance, giving clear instances of poor performance on his/her part, directing him/her to improve that within a specific period keeping his/her work constantly under scanner. If the employee still is unable to reform himself/herself, give him a show cause notice to explain why his/her services should not be terminated on account of his/her poor performance. On receipt, consider his/her explanation thoughtfully. If reasons are not valid, you may go ahead with termination of his/her services. That would be quite legal, as you have already given him/her adequate opportunity to mend himself/herself.

Anuradha asked, "What is the legal process for terminating or releasing an employee on grounds of poor performance, especially if the employee is not yet confirmed in the company?" I need this information urgently, hence requesting all to please reply ASAP.

Thanks & Regards
Anuradha

From India, Delhi
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Dear Anuradha,

"Poor performance" of an employee needs to be explained and established beyond doubt before termination to maintain the trust of other employees in the organization about its management; otherwise, this can send the wrong signal. In my opinion, you must adopt the following steps:

1. Kindly obtain a report from his immediate reporting officer, forwarded by the HOD, explaining his performance deficiencies along with the set standards.

2. Based on this report, issue him a warning letter clearly stating what he needs to improve and set a timeframe to show the improvement. After completing 50% of the given time, HR should review his performance with his immediate reporting officer and inform the employee of the progress in the presence of the reporting officer. Record the same in his personal file with both his and his reporting officer's signatures as a token of acceptance of the facts.

3. After the specified timeframe has elapsed, conduct a review as mentioned above. Inform the employee in writing of the outcome of the review after counseling, as a final attempt to address his attitude towards work.

4. Follow all the steps listed in point 2. After completing this process, the employee may choose to submit his resignation before facing termination. I have had 3-4 occasions to remember. However, all the steps mentioned above should be carried out with a strong conviction to help the individual improve. The employee should realize that every possible effort was made for his enhancement, and he is not suitable for the position.

5. After following all the above steps, if an employee still decides to pursue legal action, the documents created will be adequate to justify "natural justice."

For further clarification, please contact me at 09337837778 or email msbalan@kurlon.org.

From India, Bhubaneswar
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Dear Anuradha,

It's easier to terminate an employee than to hire one! When you and your company hired him/her based on their skills/competency, they should have met all the criteria for meeting KRA/KPI. You should also have a strong PMS review mechanism in place to prevent this situation if you already have a robust PMS review process in place. This includes feedback, training, evaluation, OJT, and orientation. By ensuring these practices within the company, even if a person is not performing well, issuing a warning letter rather than termination could be considered.

Check for any negative feedback from superiors without any backup, as ego clashes can sometimes occur. Always consider yourself as a third party when making such decisions and avoid making decisions solely based on feedback or comments from senior management or HOD. Follow the DDDM concept (Six Sigma) of Data-Driven Decision Making, which is crucial.

Regards,
Suhas H


From India, Pune
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Ms. Anuradha,

Thank you for posting this question on the site. This has provided me with the utmost information for what I've been waiting for after one strange incident that happened in my present company.

However, as per the information stated above by Mr. Kamesh, this will very much send wrong signals to the other employees. This is what is happening in my company now, after which the employees are terminated here every now and then without notifications and well-structured reasons.

The end result now is that almost all the employees in the organization are looking for a career change rather than waiting to get out of this job here, also helping each other in finding jobs.

So, please ensure that the employee is very well understood as to why he's taken out of the job and let the part of information be transparent to other employees as well, which would, in turn, help them to perform better and take necessary steps.

This will also help people like us who are looking and aiming for stability in the company, a live-and-let-work kind of environment.

From India, Bangalore
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Suggestion given by Praveen Kumar is very good, professional, and practical, which must be followed in every organization. I think these processes or similar other processes must be followed to change the performance of the poor performer, and it should be proved to the poor performer that he/she is not suitable for the position, so that the wrong message should not go to other employees.

Thanks,
Bhupesh


From India, Mumbai
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