How Should My Friend Handle Being Pressured to Resign Without Notice or Reason?

Dear Seniors, my friend is working as an Executive HR in an Indian company (Manufacturing group). On the evening of 18th March, the HR Manager informed her not to come to the office from the next day. Nothing has been provided to her in writing, and no reason has been communicated to her. She has been continuously trying to contact the management by phone, but everyone is avoiding her. No warnings were given to her earlier. The management is pressuring her to resign, and only after that, they will talk to her. The management informed her that her salary will only be transferred when she submits her resignation. Please guide. Awaiting your early response.

Dear Priyanka,

Similar practices are being followed by many small companies. Although this type of behavior is totally unethical, I would like to suggest resigning with a proper notice period as per the terms of employment and getting away from such a bad company. In fact, these types of companies and management do not value hardworking, honest, or deserving candidates, nor do they believe in maintaining good professional relationships during or after an employee's tenure with the company.

Regards,
Prabhat

Dear Seniors,

My friend is working as an Executive HR in an India Ltd. company (Manufacturing group). On the evening of 18th March, the HR Manager told her not to come to the office from the next day. Nothing has been given to her in writing, and no reason has been informed to her. She is continuously trying to contact the management on the phone, but everyone is trying to avoid her. No warnings have been given to her earlier. Her management is forcing her to resign, and only after that, they say they will talk to her.

The management told her that the salary will only be transferred when she submits her resignation.

Please guide. Awaiting your early response.

Steps to Address the Situation

Firstly, I would suggest registering the letter of concern and asking the HR to mention the reason regarding the communication they had on DATE that she was asked to discontinue from so and so date. Wait for one week post the delivery of the letter. When you register the letter, the postmaster also gives you details on the date of delivery and whether the letter was received by the concerned person, who received it, and an acknowledgment slip is signed by the person taking delivery. This will prove that your friend made an attempt to inquire about the reasons. Also, mention in the letter the dates and times when she called up the HR and/or other authorities and the responses she got - no answer, busy tone, etc.

Not hearing from them for 7-10 days post the delivery of the letter, approach the labor office and meet the Officer and share the concern.

Regards.

To quote your conclusion:

> In fact, these types of companies and management do not require hardworking, honest, deserving candidates. Neither do they believe in maintaining a good professional relationship during and after the employee's tenure with the company.

To be very honest, I do not approve of what the HR of the said firm did. But to share knowledge, I would like to mention that there are different reasons why a company would force employees to resign, such as:

1. They may think the person is not contributing much, and even after giving several hints and warnings, they do not improve. In such cases, a company may be doing good for the person by not terminating them but asking for resignation instead, so that their future employment image is not tarnished by the word "TERMINATED."

2. The company may be running at a loss and cannot manage the workforce. They not only have to reduce the manpower but also decide on the continuation of operations.

These are the two scenarios I can think of.

We cannot comment on whose fault it was because we do not know the complete story. We do not know the company's side of the story. We do not know the whole story from the employee's side as well.

How can we conclude whether or not what the company did was fair?

Priyanka, the company management has made it abundantly clear to your friend by their conduct that they do not want to continue her at any rate. Though it is discourteous and unethical and speaks volumes of the company's work culture, it is advisable to resign from such companies with a proper relieving letter and look for better companies instead of pestering them for divulging the reason and pursuing a confronting option. It is said that discretion is the better part of valor. However, she shall make sure that she gets the relieving letter.

Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai

I am with B. Saikumar—when the message is absolutely clear—irrespective of whether one agrees with it or not, your friend would only be wasting her time and effort. Let her put it to better use. However, I suggest more precaution on the part of your friend. Suggest to her to inform the company that she will exchange her resignation for the salary check and relieving/experience letter. If you go through some of the threads in CiteHR, you will notice many companies playing delaying tactics once they receive the resignation.

Regards,
TS

I do not agree with the views expressed by Ankita. Whatever may be the reason, it is very natural to expect transparency in top management's conduct. If they feel that your friend's performance was not up to the mark, then this must be reflected in the appraisal report. Secondly, if the company is financially in a bad position, there is no reason to hide this fact from an employee. However, as Mr. Tajsateesh has said, it is evident that the story of your friend with this company is over. So, do the best. Trade the resignation letter against all the dues and quit. But after that, do not forget to bring the entire episode to the notice of the labor commissioner so that the company may learn a lesson or two!

Regards,
S.K. Limaye/MBA

While appreciating the views expressed by learned members M/S Prabat, Ankita, Saikumar, and Tajsateesh based on practical wisdom, I would like to ask a question, particularly to Ms. Sankita Shah: Why is this type of culture more prevalent in companies engaged in IT and IT-related industries? I don't mean to say such a practice is not at all in vogue in other sectors; of course, there are many instances. In other sectors, trade unions still serve as a preventive check against such unethical practices; but in the IT sector, for better or worse, unionization is not possible. As suggested by Ankita, the incumbent might not have been up to the standard in terms of work contribution, and the best efforts for improvement taken by the management proved to be futile. With no other option, they might have come to this hard decision.

In my personal view, it opens Pandora's box! Termination of services is an economic death sentence awarded to an employee, and such an ignominious end to his career will make him ruthless and impervious in his personal transactions with others, notwithstanding the numerous job opportunities elsewhere. What's the guarantee the Company will give a positive feedback in case of a referral? Is the Company's process of recruitment and training defective?

I have not seen any substance in the suggestion that the aggrieved employee should complain to the Labour Commissioner after resigning from the job and negotiating a peaceful exit for the following reasons.

1) The employee concerned is an HR Executive and hence not a workman to complain to the Labour Commissioner about any matter concerning her to invoke his jurisdiction.

2) Assuming that she succeeds in proving that she is a workman, there cannot be any dispute about her cessation of the job as the same has been brought about by her resignation and not by the employer's arbitrary termination. Hence, in all probability, the complaint will not be taken cognizance of.

3) If she resorts to such action after resigning, thinking that it is her turn now to embarrass the company, it may invite reprisals from the ex-employer who may send some negative feedback to her current employer to embarrass her. It is advisable for both parties to respect the win-win situation negotiated between them and not resort to any act to disturb the understanding, as it may hurt the interests of both, more so those of the employee.

Regards,
B. Saikumar
Mumbai

I am awaiting Ankita's reply to Mr. Umkanthan's query as this question is nagging me as well. Yes, as observed by Mr. Umakanthan, all these unethical practices like collecting educational certificates are found to be prevailing in the IT sector. Maybe attrition is one problem.

Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai

To reply to post no. 7 by Sai Bhakta:

Sir, I agree with the point that companies should be transparent. Hence, I did mention that I myself do not approve of what HR did. Because no matter what the issue, it is to be communicated to the employee. I just had said that asking for resignation is not unfair given certain circumstances. Above all, since we do not know the complete scenario as to what happened, we cannot claim if it was fair or not. We have not heard the HR's story. It wouldn't be available unless they are transparent. I didn't promote the practice of terminating or forceful resignation; I just said to be patient enough to listen to both sides of stories before concluding on something or judging someone. I hope I am not wrong there, as even our legislation says so.

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Reply to Post 8:

Hello Mr. Umakanthan,

To be very honest, sir, I am not as experienced to know if this kind of practice prevails more in a particular sector. But as per my understanding, unions are mostly found in manufacturing or related firms. Unions are seen with labor. Labor used to be an uneducated bunch of people, and their employers used to take advantage of that situation. Hence, a union was formed wherein the leader used to do all the surveys and analysis and used to guide the team, and because of the unity of the team, seldom were the employers able to take advantage. However, if the employer gives benefits to the leader, the laborers could be taken advantage of.

When we talk of the IT sector, it is a different sector. And though there are no unions formed, we still can approach the labor office and share the concern and file a complaint against the employer who is taking advantage of us. And I believe we all should be raising our voice to the ill that happens. Unless we raise our voice, we cannot expect others to help us. I do not know what answer was being expected, but this is what I believe in.

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Reply to Post No. 9 & 10:

Mr. Sai Kumar,

I do not know much about IR and labor laws, but when I shared a concern about my friend who is not being given her relieving letter and about her one-sided service bond, I was asked to advise her to meet the labor officer and take the matter there. I may be wrong, but that was the suggestion given.

I do not know of any company that practices this. I have friends working in the IT sector and have confirmed with all they have not handed over their degrees, etc., in original to the employer. They were asked to get it for verification but had not kept it with them even for a day. I can understand that there are some SMBs who follow such unethical practices, maybe because they are unaware of the consequences or they think the people are unaware of their rights.

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And I really didn't understand why these questions were specifically asked to me? If I may ask, may I know the reason for the same?

Whatever has happened is very unfair and condemnable, but the victim is a female. I am not sure how brave she is and how much she needs the job. If the job is not a major compulsion, she can take a stronger stand, and I am sure she will win. Otherwise, if she lacks the guts and will to fight, let her go to the office and submit her resignation letter simultaneously by obtaining an experience letter.

In case she wishes to fight the injustice, she should send the company a legal notice. Also, just recollect the events of the last few days; it may be a case of sexual harassment. If so, instead of wasting time, she should file an FIR and a letter to the women's commission. Whatever she decides, I am sure she will win.

So, instead of wasting her time, she should take action.

Best wishes.

Thank you for your nice replies at a stretch. You may have wondered why these questions are directed particularly to you. Since my response is the starting point in this direction, I feel obliged to answer first. I posed the questions to you because your reply to Mr. Prabat seemed apt, displaying lateral thinking and considering both sides of the coin.

Although I served as an official in the State Labour Department for about 32 years in various capacities, such as Conciliation Officer, Quasi-Judicial Authority, and Enforcement Officer of certain non-technical labor laws, I remained mostly an onlooker with limited inputs required for my duties. People like yourself would be better informed about the happenings in different industrial sectors and the reasons behind them.

Corporate Social Responsibility

Corporate Social Responsibility, a topic on everyone's lips, cannot thrive without considering employees who are also part of society. Especially in matters of hiring and firing, certain minimum levels of ethics and transparency are expected from employers, regardless of the industry they operate in. Unfortunately, in our country, there is a prevalent notion that the sole purpose of education is to secure a decent livelihood. This belief has led to an unprecedented rush for professional degrees post-globalization.

Therefore, before terminating an employee for poor performance, various implications of such a drastic decision should be dispassionately considered. Factors such as the cost of training, the future of the concerned employee and their family, the moral impact on other employees, legal consequences, etc., should all be carefully evaluated. While final decisions are made by top management, it is true that HR input significantly influences these decisions.

I hope this clarifies the context of my questions and the discussion at hand.

Best regards

Dear Ankita,

I posed the questions to you because your reply to Mr. Prabat appeared to be apt, as it shows lateral thinking and considers both sides of the coin. Thank you, Sir.

From the posts, it is evident that we are heading in the right direction. However, it seems unfair to draw conclusions without knowing the other side of the story. We can provide tips to the victim and suggest a way out, but determining whether an action was fair requires hearing both sides of the story. Thank you for understanding the reason behind my questions.

That said, despite serving in the State Labour Department for about 32 years in various roles such as Conciliation Officer, Quasi-Judicial Authority, and Enforcement Officer of certain non-technical labor laws, I have remained an observer with limited inputs necessary for my duties. Therefore, individuals like yourself may be better informed about the events in different industrial sectors and the reasons behind them. It is human nature to believe the information shared initially and get carried away; it is a natural response as we are human and not robots.

In matters of hiring and firing, regardless of whether the individuals are classified as workmen under the Industrial Disputes Act, employers are expected to uphold a minimum standard of ethics and transparency. I agree wholeheartedly with this.

My father always tells me not just to punish someone for wrongdoing but to explain precisely what they did wrong, what was expected, and how they can improve. Punishment alone does not guarantee better performance in the future; providing clear expectations can help individuals improve. Therefore, it is crucial for HR and supervisors to communicate the reasons behind actions such as termination, low appraisals, or recommended training. Clear communication not only promotes transparency but also builds trust among employees.

Unfortunately, in our country, there is a prevailing misconception that the sole purpose of education is to secure a decent livelihood. This mindset has led to a rush for professional degrees post-globalization. I would refer to it as a rat race. Many individuals pursue careers in medicine for respect and financial gain, opt for engineering for better salaries, or pursue an MBA for influential positions and higher pay. I encounter candidates who excel academically but struggle with basic questions or can be easily misled, indicating that many study solely to pass exams and obtain degrees.

Before terminating an employee due to poor performance, it is essential to consider the various implications of such a decision, including training costs, the impact on the employee and their family's future, morale among other employees, and legal ramifications. While final decisions rest with top management, HR input significantly influences these decisions. Absolutely!

I recommend conducting a cost analysis for termination similar to that done for recruitment. Retaining a resigning employee is considered because of their contributions, the investment in training, cultural alignment, and other factors that influence the decision. However, termination is often swift without considering factors like performance improvement strategies, dialogue to address challenges, or offering support for skill enhancement. Even after exploring alternatives, if termination remains the only option, it is essential to communicate the reasons, provide a reasonable time frame or compensation as per company policies. I understand the negative sentiments towards HR, as some lack the crucial human touch required in their roles.

Regards,

Steps to Address Employment Issues

In such circumstances, it is better to approach the Inspector of Factories and write a letter to the District Collector. A copy should be sent to the employer. The District Collector or Inspector of Factories will ask the employer about the reasons for not allowing the employees to perform their duties. The employer has to provide reasons to them. If the problem is not resolved, it is advisable to seek legal assistance.

Regards,
L.S. RAO

Thank you for your suggestions and guidance. I would like to inform you that in her last appraisal, she received a 30% salary hike. For the past 2.5 years, she has been the sole HR personnel in the company. Last year, she recruited an HR Manager as the company is expanding, and she also needed guidance from another professional. However, the HR Manager's salary was lower than hers.

I am sharing this information because she is a high performer. Unfortunately, there have been political games played against her, and the work she diligently performed was misrepresented by her Manager under his name. There have been attempts to portray her as an underperformer. When my friend attempted to clarify the situation to the management, they were unwilling to listen.

I even suggested to her to consider resigning and seek better opportunities elsewhere, as she is the primary breadwinner in her family.

Regards,
Priyanka

Friends, I need one more suggestion from your side. As you are aware, we generally ask the question, "Why have you resigned from your current position without having a job in hand?" What would you advise? Should she tell the truth or something else?

Regards, Priyanka

Hi Priyanka,

With reference to your above post:

1. Has she been given any performance certificate, award, or written letter to confirm her contribution? A salary hike can be seen as being given to align with the compensation provided to employees at a similar level.

2. Her work experience in the current firm is 2.5 years, and she recruited an HR Manager last year. After having around 1 to 1.5 years of work experience, I believe she could have recruited a junior to delegate tasks and focus on strategizing HR functions.

3. How is it that she is hiring someone at a higher designation but is compensated less than her? Money is crucial. If someone at a higher designation receives less compensation than subordinates, it can have a significant impact.

4. Now let us consider the management's perspective. Your friend has been working for 2.5 years and is earning a salary of X per annum. The new manager she appointed has been with the company for about 1 year and earns a salary of Y per annum (where X > Y).

5. You mentioned she is the only working member in the family. In that case, wouldn't it have been better if she first secured a job offer before resigning?

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Though honesty is the best policy, here being honest may involve speaking negatively about your ex-employer, which is generally discouraged. Most companies conduct Background Verification Checks before issuing employment letters. They often contact your last employer for this purpose.

Are you confident that the ex-employer would give a positive review when asked? Do you think criticizing past practices, even if true, would help you secure the opportunity?

You mentioned she handled the HR department alone. Encourage her to emphasize this aspect. Before the interview, ask her to consider the pros and cons of disclosing the situation to prospective employers when formulating her answer.

I hope this addresses your query.