An employee was on Maternity Leave with full benefits. But even before her going for leave, the company lost a big number of clients, and we also had to lay off our staff. Now, her leave is over, and she wants to rejoin, but the company does not have any work, and people from her department have also been laid off. She is urging to rejoin and asking us to remove the only 2 people who are left in her team and allow her to continue working.
I am in the HR Department and would humbly request the highly learned members here to guide me on how we should handle this issue so that no one suffers.
From India, Ghaziabad
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4I am in the HR Department and would humbly request the highly learned members here to guide me on how we should handle this issue so that no one suffers.
From India, Ghaziabad
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Dear member,
This is a case of retrenchment on account of the losses or reduction in business. The term "retrenchment" used here strictly may not be according to the Industrial Dispute Act, 1947, or any other labor law. I have referred to the dictionary meaning.
Reduction in manpower is going on across the industries. In the IT Sector, the term "rightsizing" is used to describe the situation. However, you have linked it to the maternity leave of the employee. I recommend you see both things separately. Had the woman employee not proceeded with the maternity leave, the challenge of the reduction of manpower would have remained the same as you are facing today.
Reduction in manpower is always a challenge. Communicate the situation of the company to the employees. While removing the employee(s), preferably follow the "Last In First Out" (LIFO) principle. However, whoever is being removed always feels that injustice has been meted out to him/her. Therefore, make the decision based on the business interest. Identify who is critical to run a business and match the skill set of the employees with the business requirements.
Let me make a suggestion so that the removed employees are not left high and dry. To help the removed employees, you may tell them to apply for Leave Without Pay (LWP) for six months. If the employee does not get employment even within six months, the employee can still apply for six more months of LWP. This will help the employee to be on the rolls of the employee. When he/she faces the interview, he/she can very well say that he/she is working in your company. However, he/she can join immediately. Before joining, the employee can submit a letter of resignation, take a relieving letter and move on. This formula will help to prolong the length of their employment in your company. However, this is just a suggestion, please note.
Thanks,
Dinesh Divekar
From India, Bangalore
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This is a case of retrenchment on account of the losses or reduction in business. The term "retrenchment" used here strictly may not be according to the Industrial Dispute Act, 1947, or any other labor law. I have referred to the dictionary meaning.
Reduction in manpower is going on across the industries. In the IT Sector, the term "rightsizing" is used to describe the situation. However, you have linked it to the maternity leave of the employee. I recommend you see both things separately. Had the woman employee not proceeded with the maternity leave, the challenge of the reduction of manpower would have remained the same as you are facing today.
Reduction in manpower is always a challenge. Communicate the situation of the company to the employees. While removing the employee(s), preferably follow the "Last In First Out" (LIFO) principle. However, whoever is being removed always feels that injustice has been meted out to him/her. Therefore, make the decision based on the business interest. Identify who is critical to run a business and match the skill set of the employees with the business requirements.
Let me make a suggestion so that the removed employees are not left high and dry. To help the removed employees, you may tell them to apply for Leave Without Pay (LWP) for six months. If the employee does not get employment even within six months, the employee can still apply for six more months of LWP. This will help the employee to be on the rolls of the employee. When he/she faces the interview, he/she can very well say that he/she is working in your company. However, he/she can join immediately. Before joining, the employee can submit a letter of resignation, take a relieving letter and move on. This formula will help to prolong the length of their employment in your company. However, this is just a suggestion, please note.
Thanks,
Dinesh Divekar
From India, Bangalore
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As per the rule, the lady employee is still on the job because she has not been terminated and cannot be terminated by you as she was on Maternity leave.
It may be true that your company has lost clients, orders, and business during the period of her maternity leave. It is simply understood from your post that your establishment has retrenched some employees and laid off some employees owing to business conditions. Still, it can't be termed either retrenchment or lay-off without following the rules of the ID Act.
Therefore, your denial for the job to the employee on her post-maternity leave stands illegal. Your management should either accommodate her in the job or retrench her with benefits to calm the demand.
From India, Mumbai
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It may be true that your company has lost clients, orders, and business during the period of her maternity leave. It is simply understood from your post that your establishment has retrenched some employees and laid off some employees owing to business conditions. Still, it can't be termed either retrenchment or lay-off without following the rules of the ID Act.
Therefore, your denial for the job to the employee on her post-maternity leave stands illegal. Your management should either accommodate her in the job or retrench her with benefits to calm the demand.
From India, Mumbai
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Dear colleague,
Your company has suffered a serious business downturn, leading to the necessity of reducing the workforce. It appears that you have used "lay off" to indicate termination. The terms "layoff" and "retrenchment" have specific meanings under the ID Act/Rules, and I don't believe your action of termination aligns with them.
In light of this situation, one of your female employees is requesting HR to consider retaining her services upon returning from Maternity Leave. She has also made an immature and selfish suggestion to retain herself and let go of her two colleagues. It is not appropriate for her to propose such a trade-off between herself and her team members. The decision of whom to retain during these challenging times is the management's prerogative.
The decision to retain her should be based on her indispensability in the current business situation or its future revival, as well as her long-term utility. If her contribution is negligible, it would be advisable to communicate politely with her and suggest submitting a resignation. If she declines, she would face termination similar to her colleagues. These are undoubtedly tough decisions to make, but the challenges of business downturns often leave no other options.
Regards,
Vinayak Nagarkar
HR and Employee Relations Consultant
From India, Mumbai
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Your company has suffered a serious business downturn, leading to the necessity of reducing the workforce. It appears that you have used "lay off" to indicate termination. The terms "layoff" and "retrenchment" have specific meanings under the ID Act/Rules, and I don't believe your action of termination aligns with them.
In light of this situation, one of your female employees is requesting HR to consider retaining her services upon returning from Maternity Leave. She has also made an immature and selfish suggestion to retain herself and let go of her two colleagues. It is not appropriate for her to propose such a trade-off between herself and her team members. The decision of whom to retain during these challenging times is the management's prerogative.
The decision to retain her should be based on her indispensability in the current business situation or its future revival, as well as her long-term utility. If her contribution is negligible, it would be advisable to communicate politely with her and suggest submitting a resignation. If she declines, she would face termination similar to her colleagues. These are undoubtedly tough decisions to make, but the challenges of business downturns often leave no other options.
Regards,
Vinayak Nagarkar
HR and Employee Relations Consultant
From India, Mumbai
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Dear Seniors,
Thank you for your valuable feedback.
I spoke to the employee, and we have offered her two months of LWP so that she can look for another opportunity without having any break in her employment career. She has now agreed to the same and will submit her resignation after a month.
From India, Ghaziabad
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Thank you for your valuable feedback.
I spoke to the employee, and we have offered her two months of LWP so that she can look for another opportunity without having any break in her employment career. She has now agreed to the same and will submit her resignation after a month.
From India, Ghaziabad
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Dear HR Anjali,
Good to note that our suggestions have worked in your case. However, rather than waiting for two months, you may ask her to submit the letter of resignation now itself. On receipt of her application, send her an "Acceptance of Resignation" letter. This will bring clarity to both sides.
Thanks,
Dinesh Divekar
From India, Bangalore
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Good to note that our suggestions have worked in your case. However, rather than waiting for two months, you may ask her to submit the letter of resignation now itself. On receipt of her application, send her an "Acceptance of Resignation" letter. This will bring clarity to both sides.
Thanks,
Dinesh Divekar
From India, Bangalore
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