In any law, the phrase “poor performance” is not defined. Poor performance, according to the courts, is defined as either failing to achieve the required job standards and perform to the desired abilities, or any performance that is likely to have a detrimental impact on the workplace environment. Effectively, “poor performance” encompasses a wide range of behaviours, including transgressions of policies, procedures, expectations, and conduct codes in the workplace (not amounting to misconduct).

Dismissal for misconduct and termination for bad performance, Indian law specifies various procedures. Poor performance typically entails a mistake in judgement, negligence, or just plain carelessness in carrying out a responsibility, whereas misbehaviour involves more than a mistake in judgement. Employees who are bound by the provisions of their employment contract are often covered by this construct.

How to terminate an employee for poor performance?

• Communication of expectations of work to employee: At the beginning of the job, the employee should receive a clear explanation of the employer’s expectations. This entails giving the worker a thorough breakdown of the position’s responsibilities.
• Performance Assessments: A performance evaluation is a two-way discussion regarding performance, opportunities, and difficulties between a manager and an employee. The boss might offer advice on what needs work. The company may also set objectives for the worker to achieve over time. Depending on the nature of the activity, the evaluation should be done on an ongoing basis. For instance, reviews for manufacturing work may be needed every quarter or every half-year, whereas evaluations for office work are frequently done once a year.

• Identification of Performance That Was Unsatisfactory: Unsatisfactory work performance may be discovered through specific behaviour or during an evaluation. When such behaviour is discovered, the supervisor should express to the employee in a direct manner the necessity for corrective action. The employee should receive advice from the supervisor on how to solve the issue. These exchanges should be documented in writing.
• Record of Employees Performance: The record of an employee’s work performance assessment for a reasonable amount of time is crucial for termination of employment for nonperformance or poor performance of work, and it may be necessary for an employer to put the employee on what is commonly known as a “performance improvement plan” (PIP). Indian courts generally agree that periodic performance that falls short of expectations or poor performance, following a fair warning to the employee, constitutes a justifiable reason to terminate employment.

Termination notice

As a matter of contract, or in accordance with current law, a termination notice may be required to be given. According to rulings made by Indian courts, a termination may be overturned if the notification requirement is not met. Retrenchment, or the termination of a worker for any cause other than, for example, by way of disciplinary action, may include termination for performance that is deemed poor. When a worker is laid off, they must receive at least one month’s or three months’ notice in advance.