Hi
1) You may put your employee under performance improvement plan of 30/60 day duration as per your organisation policy.
2) Ensure to have his written consent that he is willingly consenting for performance improvement plan right at the beginning.(failure to agree to PIP can be a trigger for you terminating an employee, but after payment of notice pay)
3)Please inform him that in the event of the employee not improving or showing progress during or after performance improvement plan, he is liable to be dismissed.
4) Generally a performance improvement plan should be able to list out tasks, timelines for completion of tasks and Ranking scale(outstanding/good/ poor) measurement of outcomes.
5) Have a weekly review of performance improvement plan.
6) If the employee fails in his performance improvement, you can serve him his termination notice by paying his notice period pay .
7) For notice period, please refer to individuals terms of appointment or employee hand book or organisation policies.
8) If an employee is in performance improvement plan, he needs to be paid full salary.
9) Please note that period under performance improvement plan cannot be considered as notice period.
10) Notice pay is in addition to salary payable during performance improvement plan.
11) Adherence of all of the above mentioned steps makes you compliant with Indian labour laws.
Hope this information is useful.