• Termination of employee

So I have a very new company with less than 5 employees. One of our senior employees helped me make the job offer letter. After opening the company for the first time I have to terminate someone due to very poor performance. But I do not want that to reflect on their career hence I told them that due to covid I have to let them go. Will write the same on relieving letter too. Now according to me, the termination clause in the offer letter says minimum notice so I gave them 30 days salary without any work. This employee is threatening me to provide a 60-day salary due to the last sentence in the probation period. What is the correct thing to do here? Also they are not even sending back the company laptop, they are saying send someone and get it.) This employee is behaving really badly, rudely and blackmailing me, i do not want to provide them any experience certificate ... can i do that?
My offer letter says: (They are challenging me for 60 day salary after reading the last line of the probationary period paragraph.... but my termination clearly mentions that we can terminate with minimum notice.)
Probationary period: As per organization policy, the probation period applicable to you shall be six (6) months. During probation, the company reserves the right to terminate the employment without any notice if your performance is not deemed satisfactory. After the probation period, the notice period will be two months.

Termination: Company may terminate your employment at any time for cause.
After the end of your probationary period, Company may terminate your employment without cause at any time by providing you with the minimum notice, or pay in lieu of such notice, and any severance pay required by the then-effective Employment Standards Act.
Asked 3 years ago in Business Law

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13 Answers

You can terminate employee by providing 30 days notice 

 

not required to give 60 days notice or salary 

 

if employee fails to give laptop file police complaint of criminal breach of trust under section 406 of IPC 

Ajay Sethi
Advocate, Mumbai
96983 Answers
7831 Consultations

1. You can as an employer withhold experience certificate if the employee has not returned the property of company.

2. It is very clumsy drafting if the duration of notice period is not mentioned in the offer letter. The expression 'minimum period' can be interpreted by the courts to mean 30 days or 60 days or more.

Ashish Davessar
Advocate, Jaipur
30776 Answers
972 Consultations

It seems the person still not completed 6 months probation.

 

However you made mistake, you had to inform the person properly if he is not performing well. But its already done.

 

As per offer letter, no notice have to be given in probation period. So you can terminate without any notice whatsoever. 

 

If probation period finished then 60 days notice is applicable. 

 

You inform employee that if he/she fails to return company property including laptop then you can file FIR on him. You dont have to provide experience certificate until he behaves properly. 

Ankur Goel
Advocate, Bangalore
454 Answers

Give the employee reliving letter after completion of notice period 

 

you should also give them experience letter 

 

Pay them for 5 leaves 

Ajay Sethi
Advocate, Mumbai
96983 Answers
7831 Consultations

your offer letter clearly says it is 2 months notice so how 30 days is applicable ?

 

Further Termination can be challenged. 

 

but the company property have to be returned the way it was taken.

If employee came to collect laptop from office and then went to some other state due to corona then have to return back in office only. 

if company sent laptop to employee house then company have to get it back by sending pickup. 

 

you can provide provisional relieving letter mentioning 60th day. You have to provide relieving letter on last day after company property is returned. 

Ankur Goel
Advocate, Bangalore
454 Answers

Dear Sir,

1) If the employee had finished the 60 day probation period and  the same is mentioned in the clause, that after probation, 2 months notice has to be given then, you would have to give 60 day notice and salary for the same.

2) As in the letter of appointment the termination clause would have to be read along with the probation clause, the same cannot be sidelined.

3) You will have to give experience letter to the employee, if the employee as completed his notice period.

4) You can file criminal compliant against the employee if he is not returning company goods.

Thank you

Anik Miu
Advocate, Bangalore
10186 Answers
120 Consultations

Clause of notice period in clear term states that, “After the probation period, the notice period will be two months.” No notice  period is mentioned in termination clause. You are required to pay two months salary to the terminated employee. That is nothing the clauses that can permit you to pay one month’s pay.

 

It is futile exercise to read anything like payment  of one month’s pay in lieu of notice . Language of offer letter is very clear.

Even if two conflicting durations of notice period are mentioned in offer letter, one that is favorable to the employee will be valid. Here there is only one notice  period of 60 days.

Ravi Shinde
Advocate, Hyderabad
4195 Answers
42 Consultations

The conditions mentioned in the employment offer letter is 60 days, which is the minimum period.

Therefore you may have to observe the minimum period as stated in the offer letter and you cannot intrprete your own meaning about this clause.

If the employee is not returning the company's assets then you can take proper legal action as per law including giving a complaint with the police under section 406 IPC against the employee.

If you have decided to terminate the employee due to poor performance, then you should not show any lenience towards the employee and should have terminated him for that reason itself.

Your sympathetic approach and humanitarian consideration has been misled the employee to take advantage considering it as your weakness hence he is sitting over your shoulders to dictate terms  and make illegal demands/favors.

You invoke the service or employment conditions and initiate proper action to terminate his services for the reasons what he deserves and not on mercy.

 

T Kalaiselvan
Advocate, Vellore
87185 Answers
2341 Consultations

As far as leave to be granted to them you have a leave policy of your company hence you may apply that rule instead of coming to your own conclusion on the basis of your own knowledge without considering the leave rules of the company.

The minimum notice period can be interpreted as per the conditions stated in the employment offer letter. 

The company's conditions clearly mention that he an be terminated anytime after probation for the cause with minimum notice period.

Since the termination of employment is not due to  disciplinary  action, you may have to grant him 60 days notice period or salary in lieu. 

You may consult your company's legal adviser before taking any action in haste in this regard to avoid unnecessary litigation if the employee decides to drag you to labor court.

As far as the relieving letter is concerned, you my instruct the employee to return the company's assets and collect the same in person after handing over the same. 

You can withhold the relieving letter and experience letter for this reason itself and can mention in writing the reasons  for withholding the same 

T Kalaiselvan
Advocate, Vellore
87185 Answers
2341 Consultations

What you have done is correct and paid for 30 days salary as per the employment agreement. If he wants than he can visit to court., you can send some one to collect laptop and any other company's belonging. , Plus  one pror ata basis you can adjust the leaves in cash.

 

If you want I can send him Legal Notice for tis issue and collect the laptop .

Ganesh Kadam
Advocate, Pune
12987 Answers
262 Consultations

 - Probationary periods are often applied to new employees as a means of determining their capabilities in a new job.

- Hence, the employer can terminate during the probation period , and employee can also leave the job with the terms and conditions mentioned in the appointment letter for probation. 

- Since, the offer letter contains the clause of termination at any time , then the said employee cannot take any legal steps against you , and further he is bond to return the items of company immediately 

- You can lodge compliant against him before the police for withholding the items of company malafidely 

- However, you should send a notice to him before lodging compliant to the police 

Mohammed Shahzad
Advocate, Delhi
14529 Answers
222 Consultations

you are not bound by any law but its matter of practice to give experience letter and relieving letter with your remarks you cant say no without any cogent reasons to the employee to provoke the same

Prashant Nayak
Advocate, Mumbai
32493 Answers
201 Consultations

1. Sometimes being 'nice' can backfire.

2. Since the clause mandates a 60 day notice after the employee ceases to be a probationer you are bound to give a 60 day notice.

3. The 2 clauses that you have extracted are mutually destructive and demonstrate clumsy drafting.

4. You can hold back the experience letter.

Ashish Davessar
Advocate, Jaipur
30776 Answers
972 Consultations

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