How Can HR Handle Layoffs with Dignity? Feeling Lost in a Company with Sudden Firings

I joined my current company in October 2011 in the Operations field. Although it's a big group in Northern India supporting around 2500 employees, the current financial condition of the company is not good, which is quite normal in any business scenario.

Concerns About Employee Layoffs

What is making me worried is the way they are firing employees. This company is being run by the owner; hence there is no way to raise any questions about his self-made policies. I am surprised by the HR department; the CMD is calling them 5 minutes before closing hours to prepare the full and final settlement, and they are doing it without empathizing with the employees or asking for any reasons from those who have given their time, honesty, and loyalty to the organization. They are not even providing any notice or salary, leading to frustration and demotivation.

Employees in higher designations such as DGM Admin and Junior Executives, whether new or old, are all being fired in the same manner. This situation has made me really worried as I am new and turned down a good offer from another organization to join this company.

Question on HR's Role in Layoffs

My question is, why is HR not taking any action, and if layoffs are necessary, they should be done in a dignified manner. Everyone is concerned about preserving their professional profile.

Please help me as I am feeling very low when coming to the office daily, and all my enthusiasm has vanished.

Warm Regards,

Boond.

Sub-Firing Employees

I understand that you have objections to the manner in which employees are being fired by your company. Yes, an employee who has served a company sincerely and with commitment is entitled to be treated with all the respect he deserves. That's how some professionally managed companies have well-defined severance policies. They call the employees, explain the reasons for taking the extreme step of parting with them, express recognition of their services, and thank them for their services to the company. In many cases, they suggest ways of relocating themselves and even help them with alternate placement in deserving cases.

The HR plays a vital role in keeping such traditions in place in a company. Instead of firing employees, which may affect their profile, they should have allowed some reasonable time for the employees to relocate themselves and allow them to resign thereafter. Thus, the severance is dignified. You can suggest this to your HR or present it to them through your representative body, if you have any.

Regards,
B. Saikumar

HR & Labour Law Consultant

Chipinbiz Consultancy Pvt. Ltd.

Mumbai.

Thanks for the reply. But what I am concerned about is that HRD is not understanding at all. Everyone is just trying to save themselves. Since I joined a few days ago, they have not been listening to me. I am willing to talk to the CMD, but as per the policy, only the President and V.P.s are allowed to see him.

I tried to discuss the issue with my boss, and while he empathized with the decisions made, he mentioned that he is not in a position to say or do anything about it.

I am feeling very demotivated and have considered resigning on ethical grounds. However, from a practical standpoint, I have recently changed jobs and need financial security. Additionally, there are limited opportunities in this small organization. I am torn between whether I should confront the situation by sending an email to the CMD and others (to the common organization email address). I am aware that the likely outcome would be immediate dismissal. Should I wait for a potential opportunity and, in the meantime, continue to endure this self-imposed pressure of experiencing injustice that is impacting my day-to-day work?

I sympathize with you; however, when the company is owner-run and is in financial difficulties, and you have no worker representation, these things happen. You are right—everyone thinks of themselves and job security. Hence, no one will tell the owner that things need to be handled in a different way. Normally, the more experienced the people, the higher their pay will be, and hence, they are the first to be removed. I have seen this happen in companies and universities in the UK, where they have been offered voluntary severance.

So, if you keep your cool, you may still keep your job. Look for a good opportunity to get to the MD. However, if you want to risk losing the job to get a good night's sleep, go ahead and publicize it or get to the MD.

Have a nice day.

Regards,
Simhan