Profit and loss statement is not the performance of a single employee of an organisation. Its not trouble going to court, actually you choose a lawyer cheap and best, not a law firm, that is why trouble comes to litigant. Actually every one compromise. A employee also compromises when he receives employment/appointment letter. He doesn't actually under stand or care, whats written in the appointment letter. He reads only compensation packages and be happy. Does any employee in India discuss his appointment letter with a Legal consultant and try to understand the implication of the appointment letter as soon as he receives the appointment letter. He just compare the hike. Do you know that appointment letter is a contract? If something impossible is written in the same Force majeure principle is applicable or the contract is voidable. Taking an employer to court is paving the way for the future employee as well. Working condition can change and it may be regulated by the court or authorities. Scaring some one from trouble doesn't give the solution of a persisting problems.
Performance is the contribution of each employee of the organisation. Meeting the targets depends upon so many factors. There are so many things which cant be written here.
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On the other hand if no such process has been followed and it is simply a lay-off with one month salary without giving any reasons, then what Mr. Kumar said becomes very relevant. In that situation there is potential opportunity for such employee to take employer to court, but keeping in mind that in future his job opportunities in industry will shrink since nobody will like to hire such a person. more