Hello! I am looking for a suggestion, If an employee is in PIP and she/he is unable to successfully come out of it. Are we liable to pay them severance or give them a notice period before termination.

If a person is in PIP, that itself is a warning and a time line is given to improve the performance.In my organization we give 1 month time to improve or else they are asked to leave. There is no extra notice period in this time.The FnF is carried out as per policy

The notice period is typically part of the contract; so I would say, yes. Even ethically speaking, that would be the right thing to do. The only cause for firing someone without notice or severance pay could be behavioural issues (harassment, cheating, etc.)

Hey sejal, in my organisation we give 3 months time to perform and if the employee does not meet the expectations then we set up a call with employee along with the manager to share the feedback. If we terminate then we communicate the same in a manner that we convey our message clearly while being considerate towards the employee’s feelings. We also assist employee to get an employment in some other business within the company, if suitable.

@Sejal Kharbanda It depends on the communication during the PIP. Usually, while the improvement parameters are laid down for PIP, the communication also includes that if the employee is unable to improve as per the plan/expectation, a date will be their exit date. In this case, no notice period or notice pay is required. In a situation where the exit clause has not been communicated in writing during the PIP plan to the employee, notice period days are to served and paid or salary in lieu of notice period. In addition to above, instead of termination, resignation is a better option. It will help the employee find another job and less audit questions in terms of termination documentation. I hope the above mentioned is helpful.