Hi All,
What is the procedure to terminate an employee on the basis of poor performance ?
How many months salary should be paid to the employee ?
We have verbally informed the candidate for her poor performance but no warning emails or letter sent.
The organization dint wish to give a warning letter earlier.
Please help.
At least 2 warnings need to be given or the employee needs to be put in a performance improvement plan. One cannot terminate an employee based on verbal warnings.
Thank you. May I know how is the compensation calculated during the termination
It is better to place employee under PIP for a couple of months, review and then proceed with termination. If possible avoid the disciplinary proceedure kind of a route - warning, explanation, termination kind.
Facilitate an open talk between employee and manage and then with HR. Understand the root cause(s) and if repairable, give an opportunity. It is going to be beneficial for employee as well as organziation.
compensation is paid normal - check as well if there is notice period during termination based on contract,if he will work on it or salary in lieu of - , add gratuity if entitled, leave salary, etc…
For Poor performance, First, you will have to discuss & communicate verbally & write a mail putting on PIP for one month. In between PIP (after 2 weeks), you can review his/her performance & revoke PIP if performance is up to mark or & give a warning! if unsatisfactory. At the end of PIP period, if you are not satisfied on the performance, you can terminate the employment by paying PIP period salary or it can be as per Termination Clause of your Terms of Employment.
Thank you …Now the NP is 3 months. Do we have to pay her the 3 months salary for the termination?
Thank you Ludy. Normal in the sense, should we pay 3 months salary as the NP in general is 90 days ? There is no contract for termination.
No. Since this is due to Performance, you can terminate by end of PIP with out any extra pay. Better all the terms & policies be documented & make easily available for employees to refer like it is available in Gretyhr’s ESS Portals Document Center.
Hi Pavitraa,
As far as I know, since the termination is not because of misconduct , the employee is entitled to the notice pay. The usual NP is just 1 month not unless there is contract mentioning 3 months.
This is what I know and what we have practiced with an ex employee we terminated due to performance - we paid his np since we did not require him to work on those days, leave salary and his last salary.
We also have terminated someone due to misconduct and we did not pay his NP, just his last salary.
Not unless others practice differently 
Got it ! so to conclude. we will have to pay her 3 months salary as the NP mentioned during her joining is 90 days
Hello Pavitraa,
To terminate a person atleast one written warning is required or you need to put the individual into Performance Improvement Plan (PIP) to prove that she is not performing as per set KRA.
Salary to be paid as per appointment letter.
Regards,
Soumi