If an employee is not meeting expectations or completing a corrective action plan, do not be afraid to terminate the employee's employment. If your performance evaluations have been done properly, it can be a constructive parting for both you and the employee. Make sure you follow the correct procedure.
If the contract specifies a notice period, you must either serve the notice or pay salary in lieu. If you want to terminate the Employment Contract, you must give notice to the employee in writing in the form of a Notice of Termination by Employer.