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Termination Of Contract Due To Poor Performance for India

Termination Of Contract Due To Poor Performance Template for India

A formal document governed by Indian employment law that terminates an employment contract based on documented poor performance. It includes references to prior performance improvement attempts, warnings issued, and specific instances of performance deficiency. The document ensures compliance with Indian labor laws, including the Industrial Disputes Act and relevant state-specific regulations, while outlining the terms of termination, notice period, and final settlement details. It serves as a legally defensible record of the termination process and protects both employer and employee rights under Indian jurisdiction.

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Termination Of Contract Due To Poor Performance

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What is a Termination Of Contract Due To Poor Performance?

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.

What sections should be included in a Termination Of Contract Due To Poor Performance?

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

What sections are optional to include in a Termination Of Contract Due To Poor Performance?

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

What schedules should be included in a Termination Of Contract Due To Poor Performance?

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

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

India

Publisher

Ƶ

Cost

Free to use
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

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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