Is It Fair to Terminate Employees Without Notice? Seeking Your Thoughts and Experiences

Hello members,

Recently, my mind was triggered by one issue and I've been wondering what could be the best solution to this problem, so I would like to share this with all of you.

I have seen cases where employees are terminated suddenly, just by informing them on THAT DAY. Their accounts are cleared, and they are terminated immediately.

I think that this is unfair. When employers ask for 15-30 days' notice from their employees before they leave, don't employees also need the same right? They should be informed earlier so that they can look for another job, as sometimes people are very dependent on their job.

However, on thinking about the other side of the coin, I also felt that if employees are told beforehand, there may be cases when the employee is performing without any interest for the rest of the days (which the employer does not have to tolerate) and in the worst cases may try to leak out any confidential information.

So, friends and seniors, please express your views:

1. What are the ways to deal with this problem?

2. How does your company go about this procedure (termination)?

3. What is legally the right procedure to do it?

Please help.

Regards,

Smita

Hi,

Yes, you are right about the human angle. However, there are many hypothetical situations that vary from organization to organization. I do hope that you mean the notice period and not the notice salary.

1. Though it may sound harsh to inform an employee overnight that his/her services are no longer required, the decision is taken by the management after some deliberation. It is better to break the ice than to brood over it. Sometimes, a monetary benefit can justify the decision. In drastic cases, the employee can be given a timeframe to look for other alternatives.

2. When management comes to know of integrity/conflict of interest issues, it is better to make a drastic decision overnight and convey it clearly to the employee. Some software companies took similar action some time back against employees who had provided incorrect information in their resumes.

3. When one is not in favor of management, it is better for both the management and the employee to end their relationship rather than prolong the painful wait (unless the job involves a critical handover situation).

4. When these decisions take place, it is better to settle all accounts pertaining to the employee (write off or give a reasonable time for the employee to settle if they are due to the company).

This subject needs introspection from both the employer and the employee.

I am sure more people will share their views.

Regards,

Bala

Hi all,

An interesting topic.

This has to be seen from three points of view: Organisation, Humanitarian (Employees) & Legal;

1. From the organization's point of view, generally, such type of terminations do not take place unless the employee in question is alleged of gross misconduct serious in nature and which may affect the general discipline of the company, or set a bad precedent or affects the day-to-day normal working of the company. In such cases, the organization goes for such extreme steps to set an example for others as well as to ensure that the employee in question does not create further trouble inside the premises of the company.

However, there are certain organizations which exploit even today the workforce and tend to do the same to maintain discipline.

2. From a humanitarian point of view, it is natural that if the company terminates the services of the employee suddenly, it serves as a capital punishment for the employee's family and breaks the employee and the family members' morale. Mentally and extreme steps may be taken by them. No matter what the amount may have been, but the sudden loss of livelihood deals a big blow to the employee and his entire family.

3. From a legal point of view in India, the law is highly in favor of the employees, which protects them a lot. But the law is in favor of the workmen who come under the jurisdiction of the law, wherein no one can be terminated without following the principles of natural justice, conducting a domestic inquiry, and if a dispute is pending, then to file an approval or permission before the adjudicating authority. If in such cases sudden termination is there, the employee can always approach the adjudicating authority seeking reinstatement.

However, employees who are not covered under the definition of the Industrial Dispute Act can be terminated, and they have no other option but to just seek damages or torts from the employer in the civil court, a process for which is generally very long.

In the end, however, what I feel is that sudden termination should not be there, and we as HR professionals should continuously strive to create an environment in the organization where we work to ensure that the employee has the feeling of belongingness towards the organization and does not even think of going or working against the company. However, in case the mentality of the organization is to exploit, it is better to create a culture of teamwork where the employer also understands the importance and stops such practices.

However, as far as restructuring is concerned, it would be an entirely different topic.

Any views from my professional colleagues are most welcome.

Regards,

Anand

Hi,

Interesting!

Let us talk about good companies that issue appointment letters to their employees. Every appointment is a "contract". An Appointment Letter is that contract containing terms & conditions of employment. This contract invariably provides a mechanism as to how either party can terminate the contract of employment. Actions that conform to the covenant of the contract are not a problem at all. But then,

1) There are situations where employees act disregarding their obligations contained in the contract of employment. There has to be a remedy for such a contingency in the contract, and there usually is!

2) There are times when the employer may want to get rid of some employees in a hurry and may ask the employee to leave forthwith. Such a contingency is also provided in the contract.

Basically, therefore, all contingencies are to be provided for in the contract of employment. The contract is a frame of mutual authorities and responsibilities. Anyone who may violate these will suffer consequences. In an adult world, each is expected to conduct oneself in a responsible manner and honor accepted commitments.

But there are classes of employees—largely the "bargainable" (those who conform to the definition of a workman under the Industrial Disputes Act) and the non-bargainables (those other than the workmen in the Industrial Disputes Act).

Here the law sets the course as to how a bargainable employee's employment can be terminated. One has to be familiar with the concerned provisions. The non-bargainables have no remedy at law, and at times in their cases, one has seen both the employer and the employee disregarding the contract of employment.

Whatever the case, it is imperative that the actions involving the termination of employees (at any level) must be the right mix of the rational and the humane!

Rather a longish reply, but I did not want to be trapped in viewpoints per se and, therefore, a detailed reply!

Regards,

Samvedan

August 4, 2006

Hi, guys. This is really a nice discussion. As you all mentioned, it's merely a mutual agreement, and any party who terminates will suffer. In most companies, the employment letter is very detailed, quoting their policies and conditions for termination. However, from a humanitarian perspective, it's not fair to ask an employee to leave on the same day. The same situation occurs in my workplace, and as an HR professional, I am unable to do anything as the management is stubborn in their decision.

This has been a very informative discussion, guys.

Regards,
Ram

Hi,

A very simple solution to this issue is the contract of employment. It sets the conditions for the termination of employment from either side. If the employee has truly committed gross misconduct or has been performing poorly (despite all the efforts by management to improve that), management may want to dismiss them. Payment to the employee in lieu of the notice period (say 1 to 3 months) is justified.

However, we should try to avoid sudden terminations (except in cases of misconduct) because they can cause a lot of trauma and pressure for the employee and their family.