Managing Employee Termination and Resignation Process: Insights on Conflict Resolution and Cost-Cutt - CiteHR

Dear Seniors,

Recently, we terminated a few employees. It was a management decision in the pretext of cost-cutting. But it was actually weeding out the underperformers.

Out of this group was one elderly employee, about 54 years of age. He was initially hired based on a strong reference from one of our clients. We attempted to utilize his experience in various departments without success. It became evident that he may have some psychological issues as he encountered problems with everyone's work on multiple occasions.

The issue arose when we explained to him that due to cost-cutting and not having a specific department or role, he was being let go. To avoid portraying this as a termination, we requested him to submit his resignation. While we were open to him serving the notice period, his reaction was unexpected. He entered the Managing Director's cabin and expressed his discontent, deeming the removal process unprofessional and stating that he wouldn't resign since the company was letting him go. Subsequently, he left the office abruptly, returning his ID card. He has now emailed us, demanding prompt clearance of his dues and payment for the notice period.

We had clearly communicated that he could serve his notice period, a step he chose to forgo. Furthermore, there is no written notice of termination from us, nor has he submitted his resignation, leaving no formal proof of his departure.

How should this situation be appropriately addressed? Your advice is appreciated.

From India, Mumbai
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Although I'm not a senior, I take this opportunity to offer my $0.02 advice to you. Keep yourself in that old man's shoes and THEN take appropriate action. The basic idea is not to fool anyone, including yourself.

1) He is terminated, and you cannot fancy disguising it in any other manner.
2) Termination cannot be post-dated after the notice period; it is usually immediate (under dire circumstances, usually unlike your case).
3) Why deprive an outgoing employee of whatever contribution he has made to the company? Pay him his dues and settle it amicably.
4) Cost-cutting, I don't think, would be financially suitable for most companies, as the cost of a new joiner and associated on-the-job training/time will be more expensive or the same as the previous employee who is terminated. (I reserve my comments on this one, but time will tell.)

Hope this gives insight into how to resolve this case. :P

From India, Mumbai
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Thanks for your response. We settled his dues yesterday. Although he wasn't very happy, he was at least content that his final settlement happened immediately.

By the way, we tried to understand his point of view for four months, but he would have arguments with every person in every department he worked for. We tried utilizing his experience in four departments without any results, and that was when we decided to ask him to leave. We also gave him the option to serve his notice period so that he would have time to possibly look for something else (which he rejected anyway).

From India, Mumbai
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Dear Darshana,

It's good that you have settled this case. I suggest that you should keep a few points on priority while dealing with these sorts of cases.

1) At one point, you said that you had terminated, and at another place, you said that you asked the employee to put down his papers. These are two contradictory things. If you terminated someone, please provide the employee with proper compensation.

2) In the present case, it seems that legally neither you terminated the employee nor did he resign. It implied resignation (as he had given you his ID and other materials). To be on the safer side, please consider these cases as voluntary absconding and proceed accordingly. This way, you won't face any legal problems.

With regards,
White Eagle

From India, Hyderabad
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dear i donot know yor name,as you have mentioned that you are not senior but i feel that the answer given by you is just like a matured person.keep it up. regards j s malik
From India, Delhi
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Thank you, White Eagle, for the points provided. The contradiction arises because, as per our appointment letter, all probationers can be removed or terminated either immediately or by giving one month's notice at the discretion of the management (no salary in lieu of). In this case, we considered his age, experience, and the reason behind the separation.

We believed that since we initially hired him based on a strong reference and that he should not be treated unfairly, we asked him to "submit his resignation with notice." Due to the reasons mentioned above, this situation cannot be classified as "absconding from work."

From India, Mumbai
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From India, Mumbai
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I'm glad to read that the outgoing person was contented about his settlement. If my $0.02 advice helped you process this case, my objective is complete.

I take the liberty to comment/add a few lines: It's not about using experience or asking him to leave/terminate, etc. It's about being human, which is what I was enforcing my point. We are all HUMAN Resources. Instead of understanding his viewpoint for 4 months, all you had to do is 1) give him honest feedback about his work - that his work is not appreciated 2) put him on a K.R.A list - Do or Leave option (4 months back) 3) feedback at the end of the month - Desired effect he would request to resign if he himself finds his K.R.A is not matched at the end of 2 months. 4) Individually and professionally appreciate every person for all the time they have invested/worked for the company alongside us. You never know one day the company might stop loving which employee - Think about it. That day in the past/Yesterday was his turn. Tomorrow who knows.

This is where I sink back into the depths of silence.

From India, Mumbai
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Kudos to the senior HR Manager. At least there are some good HR Managers who understand the senior staff's problems. In today's world, the young generation and the old cannot go side by side unless the senior person agrees with whatever tamasha is done by the juniors, irrespective of understanding the senior's status and likes.

In every company, in the name of cost-cutting, employees are terminated without valid reasons, simply by mentioning that they are not contributors, mere workers, or do not listen to their seniors. However, in reality, whether the company's top brass are willing to cut their pay, I have never seen this happen because there is no way to check their pay, even if HR says their pay is also cut.

From India, Ernakulam
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