We are facing a tricky situation where the management is thinking of terminating a few senior level employees. The reason is a mix of non performance plus the financial situation of the company which may not be able to take the burden of all high salaried employees.
From my exp in such situations the employee is asked to agree to a voluntary resignation with the due notice period. However I have been asked to draft out a letter as well. This is where i need help. The standard termination letters are usually with the reason of non performance, misconduct etc. but this one is different.
Let me know if anyone has a format of this nature. Even a redundancy letter format would do.
This requiremetn is a little urgent

From India, Delhi
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Raj Kumar Hansdah
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It always better to asked those senior employees to give voluntary resignation so that they leave the organization with due respect.
Esle extremely difficult business and economic situations can be the ground of retrenchment.

From India, Pune

Dear Anuradha
It called retrachments not Termination I think their head of dept can talk with them about the matter of financial situation of company and also tell them their is no need of their service, So please submit the mutual resignation, and tell him that in future when required they can called back.
Ask him about long leave without pay because company can not afford their salary in currrent situation., than amny of them automatic ready to resignation.
you can direct write them
This is to inform you that your good self was appointed as Asst. Manager C.S in Customer services department with our company w.e.f 7th Feb, 2011. But due to the Irregularities in punctuality & negligence of duty from your side, management has decided to cease your service w.e.f 30th June, 2011
Your Services are terminated with immediate effect. Please collect your dues from Account Dept.

From India, New Delhi
Raj Kumar Hansdah

Dear Anuradha
Such issues should be handled with more sensitivity and concern for people; rather than in a routine manner.
Your senior employees have given their best for the organization; now terminating their services unilaterally, on the basis of non-performance - is it justified ?
If its on account of the financial conditions; then this should be communicated in a befitting and transparent manner.
Warm regards.

From India, Delhi

and you can write like this
Ref: our appointment letter dated 12/03/2011
It has been observed by the Management that your performance is not up to the mark. Hence your services are not required by the Management.
As per Clause 09 of your appointment order dated 12/03/2011 either party should give one months notice for terminating the services.
Accordingly, the management issue two months notice and you will be relieved from our services wef 30/06/2011
Please make a note of it.
For Pyoginam
Manager (P&A)

From India, New Delhi

I agree with rajkumar. — — — — — — — — — Pon
From India, Lucknow

I fully agree with Mr. Raj Kumar Hansdah, such a critical matter should not be andled in a routine manner. regards, Kamal
From India, Pune

Hi Anuradha,
Imagine yourself in their place and then think, being in HR its your responsibility to handle this case with more suggested by Mr. Raj Kumar...
Jut writing a letter and handing it over to them...Nope..they should be sent in a dignified manner..

From India, Delhi
I appreciate all the advice given here.I myself not in favor of any letters. however I have been asked to prepare one jus tincase.

Ihave penned down somehting like this


<This is further to our meeting with regards to / you are already aware of >the financial constraints that the business is facing. For various reasons both external and internal, we have not been able to meet our projected revenue targets. In wake of the current and future prospects of business the management has decided to rationalize its activities and expenses through various means, including a reduction in headcount.

After a comprehensive analysis of the manpower utilization and individual performances the management has decided to relieve you from the services of the organization with effect from<date> giving you one month’ s notice as per your employment contract.

It is with regret that management takes this action, but has no other choice.


please let me know if this may have any legal implications. does it sound like retrenchment and therfore call for some additional compensation.infact what are the legalities around retrenchment in service sector.

From India, Delhi

Hello anuradha.gupts,
What Raj Kumar, Pon, Archna & others have said is right--handle with an extra dose of finesse in such matters.
Suggest take time for a meeting with each of them & GO TO THE CABIN/ROOM OF EACH SENIOR EMPLOYEE & TALK IT OUT--the final request being the resignation from each of them. Make it a one-to-one meeting--never try to handle ALL [even if it's 2] OF THEM TOGETHER for such discussions.
By this gesture, you will be introducing the 'personal/human touch' into the whole issue & also take the opportunity to clarify any concerns each of them may raise FACE-2-FACE AND ALSO ensure you pre-empt any sort of ideas by any of them to go the legal way [like you guessed] LATER ON. One never can assume human responses in such traumatic conditions until the situation comes/evolves....and then it COULD be too late for you to make any course corrections from your end.

From India, Hyderabad

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