Case Of Mass Resignation - CiteHR

Dear Seniors ,
I work for a mid size IT company - our entire support team in Chennai have resigned on the same day - It is difficult for us to retain the team and at the same time we dont want to relieve them at one go as it would mean completed stand still of the support function .
Is there any law unders Shop and establishment act /Companies act which can help us in such a situation
Ruchi Shah

From India, Mumbai
Dinesh Divekar
Business Mentor, Consultant And Trainer
Process Industry Consultant / Soft Skill
Korgaonkar K A
Director Of Company
+5 Others

Dear Friend,
1:-It is very unfortunate that the whole team has resigned on the same day. It seems to be matter of dissatisfaction of employees & grievances against the company.
2:- Have you given these resigned employees appointment letter. If yes, what conditions have you mentioned in that for leaving the company?
3:- Before deciding law under shop/companies Act, first check the applicability of these acts on your firm.
Suggestion:- Take the team into confidence. Try to ascertain the roots cause of such act among employees. Make them feel important to retain them.

From India, Pune
Dear Ruchi,

Mass resignation by the staffs show that:

a) There was disgruntlement brewing. Management might have ignored it. Now the matter has come to their head and now they have woken up.

b) There could be some manager or other higher authority that was favoured by management. To teach a lesson, they have given mass resignation.

c) There was disconnect between management and staffs. Management was so obsessed with their vision that they forgot that this vision is attained through people.

d) Nothing of the above could be true. However, it is their bargaining tactic to increase the salary or other benefits. They have felt that with mass resignation, they can bring the management to their knees.

e) When whatever of the above was happening, HR did not sniff the trouble. HR should have captured the undercurrents of discontent and passed on the info to the management. In case if the HR has done that then management ignored the warning signals.

Solution: - As a solution I can say that your MD should fly to Chennai immediately. He should find out the real reason for the mass resignation. MD may make some concessions but without having complete sell out. Next MD can find out is their way for "divide and rule". Though I do not like this policy, at this stage, this is one of the options that MD can exercise. In the long-term solution, let your MD have ear to the ground and not live in ivory tower. As far as your question about any law to stop mass resignation is concerned, there is no such law. Every employee must have been issued with individual appoint letter and each employee has resigned in accordance with the terms of his/her employment.

These troubles of SMEs are common. Today every employee wants to work in branded company. Therefore, SMEs are either training centres or transit centres of the big companies!

After couple of weeks or month or so, please share your experience on how your management solved this issue.


Dinesh V Divekar

From India, Bangalore
I endorse the solution given by Dinesh ji. There is no other solution. No law can stop you from mass resignations. It is your skill to handle such kind of issues. ALL THE BEST!
From India, Mumbai
Ruchi, right advice has been given to you by Dinesh, but what equation you have with your MD/ CEO shall determine its follow up.
When such a case happens, one thing is evident that Manager/ Leader of the support team was dissatisfied & was enjoying full loyalty of his subordinates. Surprisingly, no one in your organization had any inkling about this kingpin in the support team. I am not aware if it is the technical or the customer support team which has resigned. In either case, the whole lot of them may be moving together to an alternate employer, as normally happens in such cases.
In my opinion, a meeting of your CEO with the Support team leader should be organized by you. With his experience, the CEO may be able to retain him/ her. But all this needs to be done fast. Meanwhile, searching for a replacement should be the HR initiative.

From India, Delhi
Thanks Seniors for your valuable suggestions !!
There has been some problem with our organisation which we are working on
Hence we were anticipation resignations coming in - However mass resignation was something uncalled for and we may not be able to manage the entire function if it happens
Based on your suggestions , I have requested the VP of the department to personally speak to them and buy some time so that we are able to hire and train their replacements - I will recieve the feedback about the same in a day or 2
Thanks again for all your support - I m proud to be a part of the HR fraternity
Ruchi Shah

From India, Mumbai
There is no law and there should be no law against mass resignation. After all employees are not bonded labour ! Such mass resignation is failure of HR management and if I am owning the company I will first sack the HR head.
O Abdul Hameed
Formerly Addl Commissioner ESIC

From India, Coimbatore
Dear Mr.Abdul Hameed.
(i) Sacking of HR Head is not a solution.
(ii) HR is not management but a part of management who is also employed.
(iii) The reason of mass resignations are mainly because of management policies but not HR.
(iv) People want to leave their bosses not their company.
(v) The boss might be a problematic person who has the support of top management and in such cases HR is helpless.
(vi) Its the management responsibility to find out what is right and what is wrong without succumbing to politics.
(vii) Many other factors are to be considered but not simply sacking people.
(viii) it is to be understood that a mid sized organization is different from a govt sector and many other factors are also to be considered.

From India, Hyderabad
Dear HR fan
Let us agree to disagree.
If what you propose is the role of HR, then we may not need any professional HR manager at all but only data entry operators. It is HR managers to evolve suitable HR strategies, suggest them to top managers, ensure their implementation keeping in view the level and size of the company. It is also job of HR manager to identify problem areas and anticipate discontentment and take remedial measures. If the top management is not receptive to any of the suggestion of HR manager but want to run the man management the way they like, then no qualified HR manager worth his salt will or should remain in such company. Please understand that HR is not just a clerical job but a highly professional one.
O Abdul Hameed
Formerly Addl. Commissioner ESIC

From India, Coimbatore
Hello Ruchi Shah,
Several view points have been presented.
Mass resignations reveal more than a group of people leaving the company.
It is like a faction breaking out of a party.
What is your customer base served from Chennai?
Some times ( if it is within the means) the entire lot may form a separate company
and take away all your customers.
Hence there is a need to immediately redress the issue.
This has to done by the competent authority as already pointed out.

From India

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