Hello folks! So.. I work at a start up. We’ve a nin performing employee who has been given enough chances to improve their performance. Their role was changed, they were given additional support and were given a verbal warning that they need to improve else we may not be able to keep them with us. 2 months later, no improvement. Now we’re planning to terminate the employee. since wereya startup and processes are still being created, these 2 months were technically a PIP for them, without any documentation. My question is, if we decide to terminate, do we have to pay them any additional amount, apart from their monthly salary? There’s a clause in their offer letter as under; Your appointment can be terminated by the Company, without any reason, by giving you less than 1 months’ prior notice in writing or salary in lieu thereof. For this clause, salary shall mean basic salary. Please help me interpret this

Ideally, yes. But you can also send them on 'gardening leave' during their notice period. Let them stay on for the period, take the one-month salary and go.

@Abhiruchi Atri I understand that only verbal communication about the non-performance has been provided. If this is the case, a written warning stating the dates of the verbal warning and complete documentation of communication is required before placing the person on official PIP. In the alternative, an employee may file a legal claim against the company. Given your company is a start-up, it should not take place. In case you decide to terminate the employment, you can do so with immediate effect by paying one month’s salary, which is the total monthly salary and not just the basic pay. Before issuing a written termination notice, it is recommended to have an empathetic conversation with the employee, asking them to resign, offering them one month’s pay, an experience letter instead of a termination letter, and a good reference check.