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I'm a proprietor with only 20 employees and have registered myself from 1 Nov 2023 in EPFO. I'm a small business that recruits newcomers in the 1st year of BA/BSc, etc., for around Rs. 12,000-5,000 per month.

Handling Employee Turnover and Performance Issues

They leave suddenly, and I also need to remove non-performing candidates. What is the right way, as per labor laws, to handle these two cases?

From India, Gurgaon
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Dear Anu,

When it comes to handling employee turnover and non-performing candidates, it's important to follow the labor laws and regulations in your area. In general, the following steps are typically recommended:

Termination

If you need to remove non-performing candidates, it's important to follow the appropriate termination procedures as per labor laws. This may include providing written warnings, documenting performance issues, and following any notice periods or severance requirements.

Employee Departure

When employees leave suddenly, it's important to ensure that you comply with any notice or final payment requirements as per labor laws. This may include providing final paychecks, settling any outstanding benefits, and adhering to any specific departure procedures outlined in labor regulations.

Further, as you have registered with the Employees' Provident Fund Organization (EPFO), it's crucial to ensure that you are fulfilling your obligations related to provident fund contributions and compliance with EPFO regulations for your employees.

To control attrition in your small business, it's important to focus on effective onboarding and training processes, as well as creating a positive work environment to encourage employee retention. Additionally, implementing performance evaluations and providing constructive feedback can help in managing non-performing candidates while staying compliant with labor laws.

Thanks,

From India, Bangalore
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