Dismissal due to performance issues
2024-09-15
A specific procedure must be followed when considering the dismissal of an employee due to performance issues. Please find below described the steps for implementation of this procedure.

1. Identification of reasons for implementing a performance improvement plan (PIP)
The employer should identify the reasons necessitating the implementation of a Performance Improvement Plan (PIP). These reasons should be clearly articulated and supported by evidence.
2. Development and agreement on a detailed PIP
Both parties (the employer and the employee) should collaboratively develop and sign a specific PIP. This plan should have a duration of no less than two (2) months, and the performance objectives outlined within it should be objective and achievable.
3. Written notification of potential dismissal
It is of utmost importance that the employee is formally notified in writing that a failure to achieve the agreed-upon results as specified in the PIP may lead to dismissal. This written notice should be comprehensive and leave no room for ambiguity regarding the consequences of non-compliance.
4. Recommendation for regular follow-up meetings
It is strongly recommended to conduct regular follow-up meetings to discuss the employee's performance and the overall situation. These meetings serve as opportunities to evaluate progress, provide feedback, and address any challenges or concerns that may arise during the implementation of the PIP.
If the results of PIP implementation are found to be unsatisfactory, notification on dismissal may be presented and severance pay should be paid:
• Notice period varies from 1-3 months* depending on personal circumstances of the employee (pregnancy, children under 14 years old, disabled kids under 18, disabilities of employee, severe illness (if known), pension age, etc.); and
• Severance pay of at least 2 months* average monthly salary.
*If employment relations last less than 12 months, notice period is shorter and severance pay is lower.