Dear Tanvi, Exactly like what Mr. Kameswa Rao mentioned, you could ask the employee to take a certain percentage cut from his salary. But if there are other reasons related to his termination, I am sure you may not be able to suggest the above. If the Management has confirmed the termination - and if you have no other choice but just execute it - you may follow the following: 1) Yes - you can ask a confirmed employee to leave the Organization. Please check the Appointment letter rules. Relating to "Termination of Confirmed Employees" our rules states that - If the company terminates a confirmed employee for a specific reason, then one months notice pay (or 3 months notice pay - for senior positions), will be paid by the company. 2) So kindly check the amount that the company has to compensate for. 3) Prepare a document stating Name: Employee no: Designation: Day of joining: day of leaving: Reason: Notice period to be paid off: yes/no (in this case YES - because you cant ask a person who is being terminated to continue for 10-15 days and serve a notice perios - can create a whole lot of problems as he is already frustrated) Amount to be compensated: 4) Submit this to the MD / HR Manager - who so ever is responsible to approve the payment (dont forget to mention refernce of appointment letter rules) Since the Management has no doubts on his performance and are only forced to do this because of this recession – I am sure that the Senior Management can help him find an other better offer. They must / should have links with other company senior management. Please discuss this with the HR Manager / MD first. Try all references for finding a suitable offer, maybe by relaxing on salary part. If not – at least a recommendation letter from the Managing Director himself. Trust me – the employee would never forget this help and will not hold any hatred towards management. 5) Arrange a meeting with the Person being terminated. Make sure the atmosphere is calm and relaxing 6) Make it a highly confidential meeting 7) The employee has to be properly explained that the termination is only because of the recession and has no connection to his performance. Infact it was a very tough decision for the Management too. Start of by slowly asking how the current work is going on and then mention this. 8) Be aware of any emotional vent out. After mentioning that he is going to be terminated – give time for the person to talk – question – and reduce the tensed feeling. 9) Mention about the other offer and state that The Management clearly knows the situation and would surely be of any help to him. He may ask – why only me? - Please also mention that he was not the person in their mind and they had to consider everyone’s benefits in company. Then the process - · You will have to issue him a relieving letter with the exact date of the notice period. Example – if he is leaving on 20th February and notice period is 3 months, then the relieving letter must be issued as relieved on 20th May. Else, if he gets an offer even before that from another company – mention the date he wants to be put on the relieving letter. · Make all payment settlements – clearly document it with his signature at each stage. · Make sure that no one knows that he was terminated and ask him to keep it as confidential. There is no format as far as I know for Termination – But I know it’s very painful for the employee as well as the HR. Customize it according to the situation. At the end just make sure that he leaves with no hurt feelings – give him a great farewell. Let everyone know that he has chosen to move on with another company. ---------- Ooops - too elaborate!! ;-) Regs, Ash