What do enterprises need to do:
1, performance appraisal standards should be formulated through democratic procedures and publicized or informed to workers.
2. Keep relevant evidence of performance appraisal, training or post adjustment. If the employer considers that the employee's performance appraisal is unqualified, and then determines that he is not competent for the job, the labor contract shall be terminated.
3. The employer bears the burden of proof for the "incompetent" employees. The scope of proof includes: performance appraisal standards, performance standards formulated and publicized through democratic procedures, announcement evidence, employee performance appraisal materials, evidence of training or job transfer, and evidence that they are still incompetent after training or job transfer.
Legal basis:
Article 40 of People's Republic of China (PRC) Labor Contract Law
Under any of the following circumstances, the employer may terminate the labor contract after notifying the employee in writing 30 days in advance or paying the employee an extra month's salary:
(1) The employee is sick or injured non-work-related, and cannot engage in the original job or other jobs arranged by the employer after the prescribed medical treatment period expires;
(two) the laborer is not competent for the job, and he is still not competent for the job after training or adjusting his post;
(3) The objective conditions on which the labor contract was concluded have changed greatly, which makes it impossible to perform the labor contract, and the employer and the employee cannot reach an agreement on changing the contents of the labor contract through consultation.