Transfer due to non-improvement of sales for a long period - How can we handle this situation?

Dear Members,

Greetings! Please read the case below and advise me:

Our company is Kerala-based, with headquarters in Kerala. One of our sales executives works in the Maharashtra region. Due to the non-improvement of sales for a long period and his poor performance, we have decided to wind up operations in that region and transfer him to the Orissa region (transfer letter sent via mail). He replied stating that he needs relocation expenses of 30,000/- and traveling expenses along with more time to relocate. As per our policy, he is only eligible for traveling expenses, and we can provide him with more time to relocate. However, he is not accepting this.

Key points to consider:

- We are experiencing losses in his region.
- We can only provide TA (Travel Allowance) and sufficient time for relocation.
- He is a poor performer.

How should we handle this situation?

Expecting valuable advice.

Dear Nishant,

If the employee is a poor performer, then what is the logic of transferring him to some other region? Do you think that his transfer will improve his performance? Have you investigated the causes of poor performance? What attempts have you made to improve his performance?

Transfer of poor performers happens in the government sector and not in the private sector. You could have conducted a domestic inquiry about his poor performance and sacked him. In the Odisha region, fill the vacancy with a local person to avoid expenses on account of relocation or TA/DA.

Thanks,

Dinesh Divekar

Dear Nishant,

We need to ascertain whether the internal investigation suggests that the reason for the business winding up is solely due to his performance. If so, suitable action should be taken. Otherwise, it is advisable to retain the employee if he is not actually at fault. However, experience suggests that in this case, the employee is buying time to look for another opportunity in Maharashtra by creating this kind of dispute.

Hello Nishant,

When you are clear that 'He is a bad performer', why do you want to mess things up even in Odisha? Gaurav Bhugra is right - he is most likely buying time to look for another job in Maharashtra by putting up impossible demands. Just fire him using the appraisals as the basis, that you would be having already (hope you do have them, since you mentioned adversely about his performance).

If your Transfer Policy is in black & white, then he can't even move the courts for any Company Policy has to be followed by all the employees. However, suggest getting things in writing. You issue the Transfer Letter in writing and in case he disagrees, ask him to reply back in writing. Build up a written trail to ensure the company's tracks are covered even if he acts funny later. Hope you get the point.

Regards,
TS