• Dismissing an employee - how to do it the right way?

We are an international company that has a branch in Bangalore. We promoted an internal employee to head up our business in November 2016. For the purposes of this question, let's call him Mo.

We have conducted multiple performance appraises, and found Mo was not up to standard.
We brought him to head office to provide further in-depth training.
Since his return to Bangalore, Mo has failed to adhere to nearly every deadline, there is dishonesty with his whereabouts (not in the office when he says he is), and he is failed to provide on key tasks on his KPA (key performance areas) that is vital to our business.
We hold 2 weekly status meetings in an effort to provide him with support and management of his tasks, but he is still failing to meet deadlines, and he is not being truthful about his progress on tasks. He also does not follow instructions with regard to client communications.

Furthermore, he has not trained his replacement (from his previous position as administrator), and we have just discovered that the employee that Mo was supposed to train has not been able to do his job effectively for the last 8 months due to this. (We have since provided the new administrator with training from head office in order to help him execute his job).
We have all the written evidence to the above.

I would like to give him 30 days notice, with the option to remedy his performance. Are there any other considerations we need to make in order to comply with all labour laws?
I don't want to dismiss an employee that has been with us since 2014, and we have tried to upskill him as opposed to demoting or dismissing him. We have provided every tool in order for Mo to do his job, but we have reached a point where the company is suffering financially and operationally.
Asked 8 years ago in Labour

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8 Answers

1)you can issue employee 30 days notice to improve his performance

2) in notice mention that he has filed to adhere to deadlines for completing the job , not followed instructions etc

3) if he fails to improve ask employee to resign

4) if he fails to resign terminate his services as per clauses in his appointment letter

5)you should pay all his dues in full and final settlement

6) issue him relieving letter

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

Hello,

You will have to give Mo a notice as per the terms and conditions of the employment agreement, if you however do not want to throw out Mo from your company you can serve him with a notice of last opportunity and can tell him that if further company suffer financial and operational loss, you will have to then serve the notice period.

Regards

Anilesh Tewari
Advocate, New Delhi
18103 Answers
377 Consultations

Sir, as you stated that he is unable to deliver what was expected from him.. You can give him a show cause notice , asking him to reply why he is not able to do so.. And if he has no satisfactory reply towards it ,, u can further further terminate him by giving a notice of 30 days ...

Hemant Chaudhary
Advocate, Gurgaon
4632 Answers
67 Consultations

you should give him 30 days notice with substantial salary. no other compensation/consideration is required under labour laws.

Shivendra Pratap Singh
Advocate, Lucknow
5127 Answers
78 Consultations

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.

Rajgopalan Sripathi
Advocate, Hyderabad
2173 Answers
394 Consultations

1. Since you have the evidence to substantiate your allegations against him you can proceed to serve him 30 days notice.

2. In matters of private employment the scope of judicial review by the courts is very narrow, it is limited to making a determination whether the procedure followed to dismiss the employee was in accordance with the contract and whether the dismissal was actuated by malice. If there is no such procedure laid down either in contract or company rules then the procedure has to be fair. The employee has to be given the opportunity to respond to the notice and, if possible, an opportunity to make up the shortfall in his performance.

Ashish Davessar
Advocate, Jaipur
30840 Answers
981 Consultations

1. Terminating him on the ground of under performance will give him chance to agitate legally attributing reason for his such performance on you.

2. It will be legally prudent on your part to catch him breaching service conduct rule or corruption and initiate Disciplinary proceeding against him.

3. Thereafter, offer him compensatory payment if he decides to resign which will be accepted. Inform him that otherwise he may be terminated and will not be able to get any new employment for being terminated for mis conduct.

4. He is likely to accept your said offer and resign quietly.

5. If he does not, initiate Disciplinary proceeding against him and terminate him after following your service conduct rule.

Krishna Kishore Ganguly
Advocate, Kolkata
27703 Answers
726 Consultations

If the employee is not up to the standard that the organisation requires him to be and if he is found not performing as per the standards set out by the organisation and if he is apprised not to be fit for the employment and he has never improved himself despite many opportunities given to him, you may initiate action against him as per the terms and conditions mentioned in the employment offer letter.

Taking action as per employment offer letter is not a legal infirmity.

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

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