Hi all,

I would like to get some advice regarding firing 10+ employees without notice. Is it possible to fire all of a sudden? Are we violating any policies/laws?

Please suggest to me how to terminate employees without notice. If there are laws in place, please share them with me.

Due to a decrease in orders for processing, we are unable to retain the employees, so we would like to terminate their employment.

Thank you.

From India, Coimbatore
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When you fire someone without notice, you are violating all the fundamental rights of an individual and all the laws of this country. You need to follow the process of fair conduct of a domestic inquiry where the guidelines of the principle of natural justice are ensured.
From India, New Delhi
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nathrao
3251

I would like to ask a counter question,

Would you like to be fired without notice??

"pls suggest me how to fire employees without notice?"

Forum members are here to guide people the right ethical way of sorting out problems. Do not expect Honorable members to give you advice on actions that violate fundamental rights, ethics, and all industrial rules. If your firm/organization is not getting sufficient orders, please brief the workers, give them notice, and some time to look for alternative vocations/jobs. Suddenly terminating them for business vagaries is poor management and leadership style. Do not mind my frank words.

From India, Pune
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Dear Nathrao,

Meet individual employees one-on-one and share the situation clearly as to why the company does not require their service. Ask for a golden handshake. First of all, read the appointment letter carefully. Check if they are confirmed employees or are on a probationary period. It is better to counsel them with the option of giving one month's notice period in lieu thereof if the clause is there in the appointment letter. Or please share the following details for better guidance:

- What kind of organization are you in?
- What kind of employees are they?
- Is there any union or association?
- Is there any complaint against them?
- What are the employment conditions you agreed to at the time of appointment? Read the appointment.
- Is your company covered under the Standing Orders Act?
- Does a grievance redressal system exist in the company? How does the system fail to monitor the things that force you to terminate their employment?

Thank you.

From India, Gurgaon
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Apart from the advice provided by the aforementioned members, if your company is considering retrenchment, kindly type "retrenchment" in the Tab "WHAT YOU NEED" at the top of this page. You will find various views mentioned there. If you are open to receiving additional perspectives on retrenchment, please let us know.
From India, Ahmadabad
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nathrao
3251

""or please share the following details for better guidance;"" Dear Mnj.Tiwari, I have not raised this query. Query was raised by Shri Satish.Matopat. Only he can answer your questions/
From India, Pune
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Sir, You are an HR Manager. HR Manager has to be dual adviser. please make this situation as win win situation for both the parties.
From India, New Delhi
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nathrao
3251

Siddeswaramn,

HR managers are generally advisors only. The decision to hire or fire is made by top management. In such a situation, when a unilateral shortsighted decision is taken - to fire 10 employees - finding any reason without considering explanations, the HR manager himself is placed in a total awkward position. If he quotes rules/laws, then his job will also be in danger. The management may decide to replace the HR manager with someone who will align with the higher management's directives. The fear of losses due to lower order status may have created panic in the mind of the decision-maker, leading to such decisions.

Now, someone mature and knowledgeable should be able to explain that lean times come and that if the workers are briefed about the financial position, they will understand things in a better light. The company can provide options such as reduced work hours and pay for a period or offering unpaid leave, etc. Essentially, the management will need to demonstrate leadership of a higher order to navigate through such crisis situations.

From India, Pune
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Hi,

Sometimes, a win-win situation requires many adjustments from both sides. Look at the news of Technip offshore firing 6,000 employees due to the same reason. Many companies do this and still in an ethical way, so there is nothing wrong in asking this question on the forum on how to do this.

It is not a good idea for a company (and also for employees) to give this bad news in advance when a big number of employees are involved. The mass disappointment can take very bad turns. Also, a big number of employees on a group notice period can be a big risk for the business at hand for the company.

If the reason is really 'lack of work,' then it is not 'all of a sudden.' I am sure employees are already aware that there is no work and some retrenchment is expected. The issue is, if you make it public news too early, then the performing staff will easily find another job, and useless staff will remain, to whom you cannot fire then. This affects what small business is available with the company.

So, sometimes it is better to not make this news public too early.

The only important thing is to compensate the employees with proper remunerations for the notice period or sustenance period, as per the contract. Even if this is not "required" as per the contract, considering the service received from these employees, you can think of additional benefits to cover this period for the employees' sustenance (like payment including HRA for the notice period).

Best Regards,

Amdo Bobade


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nathrao
3251

Business is known for ups and downs. The vagaries of business are what make it unpredictable. Sometimes, during prolonged periods where orders are not forthcoming, a company may have to retrench. While retrenching is always painful, steps can be taken to reduce the pain. Laying off people closer to retirement and total newcomers can also be considered. Giving the workers as much advance notice as possible allows them to look around for jobs. Try to consider a VRS scheme or transfer to group companies if possible. People are the real resource for any company, and they should not be parted with so easily. Tomorrow, the situation may turn around, and skilled workers may not be available so quickly. Reskilling can be an idea to be explored. Do not use temporary downturns as an opportunity to let people go. Make considered decisions and assess whether the company can weather the storm. It may be easy to let go in a crisis, but by holding on, workers will show double loyalty as they are aware that, despite the problems, the company was welfare-oriented enough to struggle but held on to people.
From India, Pune
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