Is It Ethical for HR to Terminate Employees Without Notice? Seeking Guidance on Recent Layoffs

Dear Seniors,

Your comments are really needed on this post. Something very bad has happened for which I was worrying about since yesterday.

This is in relation to my yesterday's post ("How downsizing will affect the freshers in the company"). There were around 22 views but no reply. Possibly, you people have not found it worth replying. But your suggestions are really needed today. Please guide.

"Yesterday, the management of our company terminated a bunch of freshers with immediate effect." Many of them were my own batch mates. Those people were not given any intimation even a day before termination. Does an ethical HR practice allow this?

In the current economic conditions, termination is acceptable. Companies are forced to do this to survive. But is it the right way to terminate any employee? Without giving any intimation in advance? I am really very disappointed with this. How can my company's HR have allowed this? The worst part is that they themselves were involved in this. Though the terminated people have been paid the Notice Period Amount, can it compensate for the disappointment they have felt?

We HR people are supposed to bring ethics and values into the organizational culture. Then how can we ourselves avoid it?

Dear Seniors, please comment. I expect your responses at least on this post.

Dear,

There are some decisions which HR has to follow. One should not be emotional in this regard. Ideally, if someone is on probation, then prior intimation is not required.

Thanks,
J. S. Malik

Dear PMA,

What the company did must have been painful for the freshers to accept. In fact, they must have been called for a meeting, clearly informed of the situation, tried to explain, and then proceeded with the decision.

Anyways, they have decided to terminate. There is no stopping, so why not be a little kind to the people? It was not the mistake of the freshers.

I have been through the same situation. The case was: offer letters were sent to freshers (after a huge recruitment campaign in South India). Twenty students were selected to join in the month of April 2008. We had to delay their joining by eight months, and then in November 2008, we called them individually and informed them that they would not be hired.

The outcome was frustration and a bad reputation for the company. No college management will respect us or trust us in the future.

In this case, I believe that some options must be provided for the freshers. They could either agree to a lower pay or work on a consulting basis while pursuing a part-time course that could offer them better opportunities in the future.

If the above options are not feasible (i.e., if the company has no projects to work on), then HR can provide reference letters for the freshers stating that the student was selected but could not join due to the severe impact of the recession on the industry.

There are companies hiring, so the senior management can provide references or recommendation letters to those companies.

It will be very painful for all these new joiners to accept the fact that they have been terminated. They would not accept that fact, as they would have built so many dreams on this new job. HR must ensure that the freshers don't start feeling less confident and clueless. Guidance can be provided on the options that can be chosen.

Many HRs are facing the same situation. The problem is that we have to only execute what the management asks us to do.

Company HRs are forced to be involved in it. They are helpless - it's true. We can only suggest. But sometimes the response is "Do what is asked to do."

Dear Mr. Malik & Ash,

Thanks for your comments.

I accept that HR has to act on many decisions taken by Top Management. But it is also right that something should be done for those people who are terminated. References/Recommendations are really a good way.

What disappointed me is that Management should have given at least a prior intimation to them. Anyways, I hope that those people will face this situation well.

Thanks to both of you for your reply.

Dear PMA,

As you know, every person in this world works for money because it's a time of recession. Companies don't have enough funds to provide salaries to their employees, so the management of the company is deciding what to do or not to do.

So, it totally depends on the company management. There is no mistake on the part of your HR Department; they just have to follow the instructions given by the management.

In my opinion, the company management should create a strong strategy so that no employee will suffer. Additionally, during a recession, the executive level of an organization often suffers because a fresher or executive takes time to learn before being able to perform, and up until that time, the company has borne their costs. That's why the executive level often has to suffer.

Middle and top management can put in double the effort and contribute to the company's success.

Therefore, we should respect our HR profession and always trust in management.

Regards,

Ankur Asthana

Dear Mr. Asthana,

Thanks for your comments. I accept that HR people have to work under the direction of top management. Companies do have their own limitations, and due to the recession, they are forced to terminate their human assets. However, as you said, there should be a proper strategy adopted for this.

Thanks for your comments.

Hi PMA,

Yes, it is a painful task to terminate employees. I'm sure the management (if they have a heart) would have found it to be a painful decision as well. (This would not apply to the management who do this under the disguise of recession.) However, to save the organization, and in turn to save the lives of a majority of the employees, they decide to sacrifice a few.

The employees terminated from your organization are all freshers. Imagine a situation where a batch of experienced employees has been terminated... they may be the sole breadwinners for their families. The entire family would suffer until they get another job, which is tough in the present market conditions. Your management terminated only the freshers and was at least kind enough to pay them the notice period salary, which many companies do not do in the case of probationers.

As an HR person, we can only advise the management to do it ethically and attach a humanitarian angle to it.

Best Regards,
CSP

Dear,

Your understanding is right, but your comprehension is not. Let me explain further. Firstly, recession is like blow after blow hitting the companies, therefore, defenselessness. Secondly, cost-cutting on the routines and cost prevention on the rarities are the need of the hour. Never before have we thought of reducing costs mercilessly in history. Thirdly, no theory of management has ever evolved for such times, hence management professionalism is set aside. Even you would be compelled to do so. Many of us are silent on such issues because we do not know where the axe will fall next, maybe on you next.

Francis

Feeling really sad for the employees terminated without prior notice.

A better course of action would have been to call all those employees for a meeting, give them all the facts of the situation, and then ask for their views. It is possible that some good suggestions may have come in that could have helped avoid the termination process.

Separation is always sad and painful. Perhaps a reduction in pay would have been a better option, and top management must have thought about it.

As HR is the custodian of all activities related to employees, HR has to handle this as well. However, considering the overall scenario worldwide, the timing is not right.

At most, we as HR can request management to avoid frustration and negativity in the minds of young employees. As the management is willing to pay the notice period salary, all those employees could be put on notice as per the terms of employment and be asked to look for jobs outside. When they secure any opening outside (within the notice period), they can resign.

Pawan

Dear PMA,

I have read some of the replies to your fervent appeal to all of us to respond!

Some of us have said that we should 'trust the top management' and we have to do 'what top management says,' etc.

First and foremost, we are part of the Top Management! We are not just merely following instructions.

Next, put yourself in the position of the CEO and CFO. Would you take a different approach? HR gets very emotional in such situations and hence finds it difficult to make tough calls.

I have a simple question for all of us... if we have financial difficulties, would you think twice before reducing the number of maids at home from say 2 to 1? Would you continue the services of your driver on retirement? In most cases, not, even if the maid or driver has rendered good service to you for several years.

But as some have responded, HR must treat the unfortunate with dignity and respect. In all probability, you will need the services of the very same freshers in a year or so!

What everyone, not just HR, is going through is a turmoil where the value system is being severely tested. Even some well-known corporate houses have resorted to measures they would not have dreamt of, say 5 years ago. 😕

Smile, sunny days will come back soon!

:)

You have not seen your previous post. There were responses from seniors. Be cool and stabilize yourself.

The ultimate truth regarding any business is 'to make profit'. HR needs to support the CEO to make this happen.

Hi,

According to me, it would be difficult for the HR people of your company to terminate so many freshers, but it was their responsibility which they have to perform. There is nothing about being ethical. Nobody would like to do this, but they have to. Try to understand if the company doesn't have enough funds to pay off these freshers, then what would they have done? I understand it's difficult for all those freshers, but nobody can do anything. I'm sure one day they will all get good jobs.

Hi buddy,

Well, if you ask me whether it is ethical, both yes and no could be the answer. Any decision made in an organization is like two sides of a coin - it certainly makes someone happy and the other unhappy. In this case, you should consider not only the young employees who lost their jobs but also put yourself in the shoes of management. Please remember that they are accountable to the promoters/shareholders for every expenditure incurred in the organization's development.

HR plays a crucial role not only in attracting the best talent to the organization but also in removing any obstacles that may hinder growth. You cannot be solely happy for someone getting a job or solely unhappy for someone losing it.

Cheers~

Dear Pmajgn
Even if you can not remember what you wrote 1 day back; how can you expect from the superior to appreciate the work done on yesterday. May be they forgot your work and presented you a notice of termination. Be sincere and work hard.
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Present Post
Dear Seniors..

Your comments are really needed on this post.. Something very bad has happened for which I was worrying about since Yesturday..

This is in relation with my yesturday's post.. ("How downsizing will effect the freshers in company").. There were around 22 views but No REply.. Possible you ppl have not found it worth replying.. But your suggestions are really needed Today.. Pls guide..

https://www.citehr.com/147974-how-ca...o-ethical.html
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Previous Post
Dear Seniors..

Please suggest me on this..

Right after completing my MBA (HR), I joined my current company 9months back by Campus Selection.. I am fresher & this is my 1st job.. First 7 months were really good.. After Induction, I was placed in Recruitment & was working very well.. My HOD was also happy with me as I have picked up at a really fast speed………………………………………………..
…………………..And I am sitting idle at my desk.. Watching everybody around & getting more & more frustated everyday.. Being a fresher, dont know much about other functions.. Trying a lot to learn new things but no body has time to explain.. Everyday, for the whole office hours, doin NO value addition to my profile.. Sometimes surfing net to increase my knowledge, sometimes helping others in their day to day work.. To keep myself busy, doin all sorts of non value adding activity..

If I will be terminated, what will be my future.. We dont have jobs in the market………………..
https://www.citehr.com/147816-how-do...s-company.html


Even the sympathies of the senior members can not add value to your skills. Its you, who can visualize the scene very closely and decide the best logically.

Dear Friend,

Even though I am a fresher in HR, I would like to share my views in this regard. Of course, we HR professionals are supposed to bring ethics and values into the organizational culture. I do agree with you, but when it comes to the question of survival of the organization, we have to accept it. Because the organization exists, then we can talk about ethics and values. I hope, my dear friend, you understood.

Regards,
Madhu.M.S.

Dear PMA,

I totally agree with the comments on INNOVATION. Everything that is executed following the local labor laws cannot be denied. Furthermore, in your case, you will easily find freshers if needed, but it will be difficult to find experienced staff as per your requirements in the market.

My dear and disappointed PMA,

First of all, congratulate yourself that you are not one among many who have been terminated by your company. The company runs on professional values and not emotion and personal sentiments. This is the time when every company has to think before recruitment. I agree and share the concern you have with those who left or were asked to go from your company, but the doors are not closed. I agree with the saying that OPPORTUNITY NEVER KNOCKS TWICE, but at this juncture, ONLY OPPORTUNITY KNOCKS, nothing else. We also need to be equally opportunistic in finding a better solution, so leave it.

Have patience. It is not just YOU, but it is WE among many other sufferers.

Best wishes.

Manoj Gupta
Kamp_700693@yahoo.com

Your comments are really needed on this post. Something very bad has happened for which I was worrying about since yesterday.

This is in relation to my yesterday's post ("How downsizing will affect the freshers in the company"). There were around 22 views but no reply. Possibly, you people have not found it worth replying. But your suggestions are really needed today. Please guide.

"Yesterday the management of our company terminated a bunch of freshers with immediate effect." Many of them were my own batch mates. Those people were not given any intimation even a day before termination. Does an Ethical HR practice allow this?

In current economic conditions, termination is acceptable. Companies are forced to do this to survive. But is it the right way to terminate any employee? Without giving any intimation in advance? I am really very disappointed with this. How can my company's HR have allowed this? The worst part is that they themselves were involved in this. Though the terminated people have been paid the Notice Period Amount, can it compensate for the disappointment they have felt?

We HR people are supposed to bring Ethics and Values into Organizational Culture. Then how can we ourselves avoid it?

Dear Seniors, please comment. I expect your responses at least on this post.

Dear PMA,

It's really sad, but at the same time, a hard reality currently. We cannot get away with it. I strongly feel that terminating employees without even a day's notice is not right. All of us are going through a recession period. It's our responsibility as a people's person to think through it from both angles. Why can't we strongly present our point of view to the management with suggestions like they should be given at least 15-20 days' notice with a list of good consultants so that the reputation of the company stays intact.

Rgs.

Hi,

Lots can be said for and against the situation you have described, and therefore, I will not comment on it. However, one thing I personally believe is that the management must communicate reasons for any decision that may impact the work climate and morale in the organization. This communication is not about justifying the decision but about openly disclosing it and explaining the rationale behind it.

Management decisions like the one you described cannot be avoided due to business necessities. Nonetheless, proper communication of these decisions throughout the organization is also crucial.

Jai.

Dear All,

The real issue of ethics in the HR profession has been brought into focus by this matter. Was it not the duty of the HR manager to communicate the decision without creating any bitterness? The decision of the top management is to sack them, but as HR professionals, are we performing our duty professionally by communicating it so bluntly? There are organizations that have transcended the usual protocols and turned such separations into memorable experiences. In today's circumstances, terminations are understandable, but what truly matters is the way in which they are handled. Should it be approached mechanically, treating employees as mere hands hired for the organization, or should we consider their sensibilities? Organizations that have exceeded the narrow perspective of roles and responsibilities are the ones that people remember, creating great workplaces.

It is important to remember the maxim, "We need not always oblige, but we can communicate obligingly!"

Regards,
KK Nair

Hi everybody,

I have gone through all the opinions aired for the benefit of our friend. I absolutely endorse with you all. However, I have a few observations:

1. With recession, two categories of people got affected; the first being the freshers and the second, the senior employees.
2. It has been observed that every fresher and senior is making a hue and cry for the present recessional turbulence.
3. While it is genuine to accept the woes of a fresher as unfortunate and untimely, as they would have had lots of employment opportunities and for the present, their future is in the dark.

But, I fail to understand why the seniors who could have prepared/saved for a rainy day are frustrated. I guess the reason could be all that was to save for tomorrow has been lavishly spent yesterday without realizing the repercussions that may arise in the future. May I ask you, my dear friends, who should be held responsible for this sudden development in their lives? Is the organization in any way responsible for it? It paid well as long as it could. It was the prerogative of those senior people to save or not to save. In most cases, people who went abroad also claim that they saved nothing and are running in liabilities.

When a person can afford a first-hand car at a reasonably young age when he/she owns a dream house at a zero percent housing loan, heavily banking on credit cards, would you expect that the financial crunch the nation suffers shall leave these guys untouched.

If I remember correctly, I know some very senior doctors and engineers who left/migrated to the US and other foreign countries much before the IT professionals stepped into these countries, preferred to buy a second-hand car until they achieved a reasonable level of financial stability.

Can we not realize now, where the mistake has taken place? Then what is so surprising about the present state of affairs.

4. Coming to freshers, IT certainly has provided opportunities to everyone; but please let me know, is it only IT or economy-based organizations that have resulted in unemployment? Are there no parallel employment avenues for the guys? A civil, mechanical, electrical, management, finance, and everybody preferred jobs in software for the fact that they believe only IT can pay big and none can challenge it. My dear friends, it is not so; a core engineering guy must always explore possibilities in his/her field, not getting too much attracted to the field which his/her neighbor gets attracted to.

Anyway, my observations may not be truly relevant to the question in reference, but I thought I should share these few words with you all.

I wish this turbulence in the economy to be a temporary one, and all freshers would certainly have a bright career very soon. Unemployment is not a curse; we all must fight against this evil by exploring alternative ways to earn our bread and butter. For that, one must strive for achieving excellence in his core field of specialization.

I wish everyone great success.

SARVEJANAA SUKHINO BHAVANTHU. SAMASTHA LOKHA SUKHINO BHAVANTHU. HAVE SHANTHI...... SHANTHI....... SHANTHI........

Regards.