Termination: Bad Performance

Abstract

This study explores the circumstances where an employee is dismissed due to poor performance. This study highlights the critical distinction drawn by the Hon'ble Apex Court between an employee's suitability for bad performance and misconduct. The study emphasizes the importance of clearly articulating in the employment contract that an employee's performance is terminable for poor performance. In the event of a dispute raised by an employee challenging the termination order, the employer's safeguard lies in following the rule of law while dispensing with the employee's services for inadequate performance. This study will go on to suggest a straightforward procedure involving periodic performance appraisals and timely communication of poor performance to the employee, coupled with a reasonable opportunity for improvement. The judgments of the Hon'ble Apex Court are also discussed.