I hired a sales manager from 1st September in my company. His offer letter mentioned the following:
"You shall be on a probation period of six months from the date of joining. Depending upon your performance during the probation period, the Management may reduce/extend the probation period, if required in writing. During the probation period, the company may, for any reason whatsoever, terminate the employment without serving any written notice. On completion of the probation period, your services may be confirmed by the Company by issuing the Confirmation letter. However, till the Management issues you a confirmation letter confirming your services, you shall be deemed to be on probation. In this regard, the decision of the management shall be final and binding upon you. During the probation period, in case you wish to leave the service, one month prior notice or one month pay in lieu of notice is mandatory."
His performance is nil in the last two months, wherein during the interview he had promised a minimum sale of Rs 20 lakhs every month.
From India, Noida
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"You shall be on a probation period of six months from the date of joining. Depending upon your performance during the probation period, the Management may reduce/extend the probation period, if required in writing. During the probation period, the company may, for any reason whatsoever, terminate the employment without serving any written notice. On completion of the probation period, your services may be confirmed by the Company by issuing the Confirmation letter. However, till the Management issues you a confirmation letter confirming your services, you shall be deemed to be on probation. In this regard, the decision of the management shall be final and binding upon you. During the probation period, in case you wish to leave the service, one month prior notice or one month pay in lieu of notice is mandatory."
His performance is nil in the last two months, wherein during the interview he had promised a minimum sale of Rs 20 lakhs every month.
From India, Noida
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The guy is under probation. Also, your offer letter is correctly drafted. You can let him go but follow your state's Shops and Establishment Act while relieving him of duty. There is no problem from the perspective of Industrial Standing Orders or the Indian Contract Act.
From India, Kolkata
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180From India, Kolkata
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Just mention in the letter 'you will cease to be employee after working hours of dd as per clause ___', to be on the safer side don’t use the term terminated in the separation letter.
From India, Mumbai
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From India, Mumbai
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Termination Process for Underperforming Employees
The terms and conditions mentioned in the employee's appointment letter will prevail over standing orders and service rules. It is settled law, and there have been various rulings from the Apex Court. You should execute the action without any doubt. Call the employee, provide him with a plain sheet, and explain the situation that no company can grow without receiving outputs in return. Communicate what actions need to be taken now and why. The possibility exists that he will resign, but if he does not, issue a signed termination letter immediately without letting him leave.
The text of the termination letter is as follows:
"You are under a probation period for six months, and you have been in the organization for almost two months since joining us. Since your performance is not satisfactory, management has decided to terminate your services with immediate effect, as per clause... of your appointment letter dated... Please submit a No Dues Certificate from the concerned departments to enable us to settle your accounts."
Such actions are also compulsory for making organizations grow and stay ahead in the market.
Hope you are fine with this.
Regards, RDS Yadav
Labour Law Advisor
Navtarang HR Services
From India, Delhi
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The terms and conditions mentioned in the employee's appointment letter will prevail over standing orders and service rules. It is settled law, and there have been various rulings from the Apex Court. You should execute the action without any doubt. Call the employee, provide him with a plain sheet, and explain the situation that no company can grow without receiving outputs in return. Communicate what actions need to be taken now and why. The possibility exists that he will resign, but if he does not, issue a signed termination letter immediately without letting him leave.
The text of the termination letter is as follows:
"You are under a probation period for six months, and you have been in the organization for almost two months since joining us. Since your performance is not satisfactory, management has decided to terminate your services with immediate effect, as per clause... of your appointment letter dated... Please submit a No Dues Certificate from the concerned departments to enable us to settle your accounts."
Such actions are also compulsory for making organizations grow and stay ahead in the market.
Hope you are fine with this.
Regards, RDS Yadav
Labour Law Advisor
Navtarang HR Services
From India, Delhi
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It's an easy job because you have drafted the offer letter very well. Now, prepare a caution notice for him and clearly specify that the company is not satisfied with his performance. If this continues, he will be terminated from the job. Keep the signed caution notice on your end and hand over a photocopy to him.
Even after signing and receiving the caution notice, if he continues to exhibit the same behavior, you can terminate him without hesitation. The caution notice, once signed by him, will provide you with the legal grounds to terminate his employment if the behavior persists.
Regards, D. Dhanashekar
From India, Bangalore
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Even after signing and receiving the caution notice, if he continues to exhibit the same behavior, you can terminate him without hesitation. The caution notice, once signed by him, will provide you with the legal grounds to terminate his employment if the behavior persists.
Regards, D. Dhanashekar
From India, Bangalore
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Probation Period Termination Clause
If an employee is under a probation period, can a company terminate their employment at any time if the offer letter includes a clause stating that the department may terminate for any reason whatsoever? What does "whatsoever" mean in this context? Does it include reasons like poor performance or nil performance? Is it sufficient to terminate employment by stating that performance is nil without issuing any warning letter or conducting a proper inquiry into why the performance is nil or poor? Does this not affect the employee who is under the probation period? Can we include any clause in the offer letter, whether valid or non-valid?
Your views, please.
Regards,
Amit Gupta
From India, Jaipur
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If an employee is under a probation period, can a company terminate their employment at any time if the offer letter includes a clause stating that the department may terminate for any reason whatsoever? What does "whatsoever" mean in this context? Does it include reasons like poor performance or nil performance? Is it sufficient to terminate employment by stating that performance is nil without issuing any warning letter or conducting a proper inquiry into why the performance is nil or poor? Does this not affect the employee who is under the probation period? Can we include any clause in the offer letter, whether valid or non-valid?
Your views, please.
Regards,
Amit Gupta
From India, Jaipur
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I don't think termination, even when one is on probation, would be advisable without establishing the cause of termination. In this case, the Sales Manager should be issued a letter on company letterhead "cautioning" him on his "under-performance/non-performance" first and allowing him time to improve and produce results. Otherwise, if it is referred to a court of law, the principle of natural justice is sure to prevail over the terms of appointment, and the Letter of Termination would surely be declared as null and void.
Drafting a Termination Letter
When drafting a Termination Letter, "'you will cease to be on employment after working hours of dd as per clause ___' is a better proposition." The letter should also reference the "Cautioning Letter" as mentioned above, issued to the employee.
Regards,
Soumitra Sengupta
From India, Pune
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Drafting a Termination Letter
When drafting a Termination Letter, "'you will cease to be on employment after working hours of dd as per clause ___' is a better proposition." The letter should also reference the "Cautioning Letter" as mentioned above, issued to the employee.
Regards,
Soumitra Sengupta
From India, Pune
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