How Soon Should You Settle Compensation After Termination for Poor Performance?

Minimum Timeframe for Employee Compensation upon Termination

What is the minimum timeframe to compensate an employee's salary when their employment is being terminated on the grounds of poor performance?

As far as I know, if management is giving sufficient time to their employee to perform and is verbally conveying several times to improve their performance, then in such cases, what is the right time to give the final settlement to the employee? Should it be after 45 days, on the next payable day, or at the same time? Since management is providing sufficient time to perform and also intimating them, it cannot be considered an on-the-spot termination.

Termination Process for Underperforming Employees

As per standard employment regulations, you can't terminate an employee on the spot. You will need documentation showing that the employee's performance is subpar and have taken steps to move the underperforming employee to a performance improvement plan (PIP). The employee must acknowledge that their performance is below expectations and agree to participate in the PIP program for their development.

During the PIP, the employee will receive appropriate training and be assigned new Key Result Areas (KRAs) to meet. Failure to meet the new performance expectations may result in termination by the company. The employer may offer a severance package in lieu of the notice period if they decide not to retain the employee.