The Termination Of Contract Due To Poor Performance document is essential for organizations operating in India when they need to formally end an employment relationship due to unsatisfactory performance. It is used after documented performance improvement attempts have failed and serves as the final step in the performance management process. The document must comply with Indian labor laws, including the Industrial Disputes Act, relevant state-specific regulations, and principles of natural justice. It should detail the performance issues, improvement opportunities provided, and termination terms while maintaining procedural fairness. This document is crucial for protecting the organization against wrongful termination claims while ensuring transparent communication with the employee regarding the termination decision.
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1. Date and Address Block: Formal letter heading with date and recipient's details
2. Subject Line: Clear indication that this is a termination notice
3. Employee Information: Employee ID, designation, department, and joining date
4. Reference to Previous Communications: List of previous performance improvement plans, warnings, and review meetings
5. Performance Issues: Specific instances and areas of poor performance with dates and examples
6. Steps Taken for Improvement: Documentation of support, training, and opportunities provided for performance improvement
7. Termination Decision: Clear statement of termination with effective date
8. Notice Period/Pay: Details of notice period or payment in lieu of notice
9. Final Settlement: Information about final dues, benefits, and settlement process
10. Company Property: Instructions for returning company assets and maintaining confidentiality
11. Signature Block: Authorized signatory details and company stamp
1. Severance Package: Include if offering additional compensation beyond statutory requirements
2. Non-Compete Reminder: Include if employee is bound by non-compete agreements
3. Outplacement Services: Include if company is offering career transition support
4. Appeal Process: Include if company policy allows for appeals against termination
5. Reference Policy: Include if specifying how future reference requests will be handled
6. Legal Notice: Include if there are specific legal implications or requirements to be highlighted
1. Performance Review History: Chronological list of performance evaluations and ratings
2. Warning Letters: Copies of all formal warnings issued
3. Performance Improvement Plan: Copy of PIP and documentation of progress/failure
4. Meeting Minutes: Records of performance review meetings and discussions
5. Final Settlement Calculation: Detailed breakdown of final payment including all dues
6. Handover Checklist: List of items, responsibilities, and accounts to be handed over
Authors
Relevant legal definitions
Clauses
Relevant Industries
Information Technology
Manufacturing
Financial Services
Professional Services
Retail
Healthcare
Education
Telecommunications
Construction
Hospitality
Logistics
Media and Entertainment
Real Estate
Consulting
Relevant Teams
Human Resources
Legal
Employee Relations
Compliance
Performance Management
Operations
Administration
Relevant Roles
Human Resources Manager
HR Director
HR Business Partner
Legal Counsel
Department Manager
Performance Manager
HR Operations Manager
Employee Relations Manager
HR Compliance Officer
Line Manager
Senior HR Executive
HR Administrator
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