Dear All, In this bad time of industry can we ask a confirmed employee who is working in the organisation for the past 3.5 years and getting much more salary than others to leave. Please guide me or provide the format for the same. Waiting for sooner reply. Thanks Tanvi
From India, Delhi
From India, Delhi
Tanvi, If you are planning to terminate an employee then you should have a reason for yourself like non-performance, irregular attendance, attitude problem. If you are terminating an employee just because his salary is high irrespective of his performance then I think you are loosing a good employee. Always remember an older employee is always an asset to organization. On the other hand if he has got any of the reasons like non-performance and etc., then tell him the reasons direcly and give him a time like 1 or 2 months to correct himself or else you can issue a warning letter and terminate him. HR can't kill a snake without harming the stick and you need to be aware of it. Regards, DJ
From India, Bangalore
1From India, Bangalore
dear in this case you have to follow the retrenchment clause of ID act 1947. last come will fist go and u have to pay retrenchment compensation as per act. tks j s malik
From India, Delhi
From India, Delhi
Hi Malik, Can you please elobarate the clause for my information and also what is the compensation amount. Regards, DJ.
From India, Bangalore
From India, Bangalore
Dear Friend, If the organization is unable to pay the salary to that extent in that case the management can call the employee and brief him the criticalities and can request him aceept for x% salary reduction (if this is across the organization otherwise it will be victimization ) or as Mr.Malikji said that it can be a retrenchment subject to last come first go otherwise it is going to be an issue if the employee proceeds legally / approaches concerned authorities like labour etc. Thanks and regards - kameswarao
From India, Hyderabad
From India, Hyderabad
Dear Tanvi, Exactly like what Mr. Kameswa Rao mentioned, you could ask the employee to take a certain percentage cut from his salary. But if there are other reasons related to his termination, I am sure you may not be able to suggest the above. If the Management has confirmed the termination - and if you have no other choice but just execute it - you may follow the following: 1) Yes - you can ask a confirmed employee to leave the Organization. Please check the Appointment letter rules. Relating to "Termination of Confirmed Employees" our rules states that - If the company terminates a confirmed employee for a specific reason, then one months notice pay (or 3 months notice pay - for senior positions), will be paid by the company. 2) So kindly check the amount that the company has to compensate for. 3) Prepare a document stating Name: Employee no: Designation: Day of joining: day of leaving: Reason: Notice period to be paid off: yes/no (in this case YES - because you cant ask a person who is being terminated to continue for 10-15 days and serve a notice perios - can create a whole lot of problems as he is already frustrated) Amount to be compensated: 4) Submit this to the MD / HR Manager - who so ever is responsible to approve the payment (dont forget to mention refernce of appointment letter rules) Since the Management has no doubts on his performance and are only forced to do this because of this recession – I am sure that the Senior Management can help him find an other better offer. They must / should have links with other company senior management. Please discuss this with the HR Manager / MD first. Try all references for finding a suitable offer, maybe by relaxing on salary part. If not – at least a recommendation letter from the Managing Director himself. Trust me – the employee would never forget this help and will not hold any hatred towards management. 5) Arrange a meeting with the Person being terminated. Make sure the atmosphere is calm and relaxing 6) Make it a highly confidential meeting 7) The employee has to be properly explained that the termination is only because of the recession and has no connection to his performance. Infact it was a very tough decision for the Management too. Start of by slowly asking how the current work is going on and then mention this. 8) Be aware of any emotional vent out. After mentioning that he is going to be terminated – give time for the person to talk – question – and reduce the tensed feeling. 9) Mention about the other offer and state that The Management clearly knows the situation and would surely be of any help to him. He may ask – why only me? - Please also mention that he was not the person in their mind and they had to consider everyone’s benefits in company. Then the process - · You will have to issue him a relieving letter with the exact date of the notice period. Example – if he is leaving on 20th February and notice period is 3 months, then the relieving letter must be issued as relieved on 20th May. Else, if he gets an offer even before that from another company – mention the date he wants to be put on the relieving letter. · Make all payment settlements – clearly document it with his signature at each stage. · Make sure that no one knows that he was terminated and ask him to keep it as confidential. There is no format as far as I know for Termination – But I know it’s very painful for the employee as well as the HR. Customize it according to the situation. At the end just make sure that he leaves with no hurt feelings – give him a great farewell. Let everyone know that he has chosen to move on with another company. ---------- Ooops - too elaborate!! ;-) Regs, Ash
From India, Madras
From India, Madras
If there is a clause mentioned in the appointment letter which speaks about the seperation policy (one month notice or salary in lieu in of one month notice period), you can do so.
From United States, Omaha
From United States, Omaha
Dear All, I have gone through the different avenues proposed in the above discussions but according to me none are feasible and tenable under the law of the land. The reason being: In the 80's, we could terminate a confirmed employee as per terms mentioned in the appointment letter which states that if somebody was under unauthorised leave exceeding 10 days- his name wouild be stuck off the rolls or just paying the notice pay any body could have been terminated but now the ground reality is that if some body is to be terminated( permanent employee)- you will have to retrench him by paying retrenchment compensation. Now according to ID act, before retrenching- you will have to approach the appropriate authority( either the State or Central machinery prescribed) for approval for retrenchement and by the time a decision is available, the very essence of terminating him will be vanished. The only option to terminate a permanent roll employee is by way of disciplinary action. That is issuenace of charge letter- conduct enquiry-prove the charges and finally termination. Other than this no straight jacket removal is not possible. D.K.Moitra
From India, Calcutta
From India, Calcutta
But what if a Company does so? I mean, without providing any retrenchment compensation, if they terminate someone due to the recession? I know a few "reputed" companies doing this. They have only compensated for the notice period, as mentioned in the appointment letter. Thanks, Ash
From India, Madras
From India, Madras
Thank you for all your guidance. It is quite informative. My next question is if an employee false in the executive or managerial category then also we need to give him retrenchment benefit or only accourding to clause of Termination mentioned in the appointment letter will go. REgards Tanvi
From India, Delhi
From India, Delhi
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