HR Manager's Dilemma: How to Handle a Verbal Termination Without Written Confirmation?

My General Manager terminated one employee verbally a few days ago, and his contract was supposed to be finished by July 2014. The employee keeps coming to the office and demanding an official termination letter. As the employee said, he will continue his duties until he gets his termination letter signed by the GM and stamped. The GM keeps saying that he no longer belongs to the company but does not give him written notification.

HR Manager's Dilemma

As the HR manager, what should I do? I can't force my GM, and I can't issue a termination letter without his permission. The employee is asking for a one-month salary as a notification period and all his dues. Will he be eligible to get benefits if we terminate someone?

Your General Manager appears to be unprofessional. He should be sacked, and not the employee in question. You need to follow the labor laws of your country. A company is not someone's kingdom where employees can be treated as chattel at the authority's dispensation.

You are cleaved in two odds. Quietly tell the employee to submit an application to the Managing Director about his plight/situation. You need to expose the intemperateness of the GM to the higher authorities. Secondly, the sacked employee will get a channel of communication to express his grievance.

Thanks,
Dinesh Divekar

First, check whether the said employee has completed 240 days. If he has completed them, you will have to give him 1 month's notice or salary in lieu, plus retrenchment compensation as per the ID Act.

Regards,
Dinesh Kumar

Steps to Address Employee Termination Issues

Discuss with your MD first privately and then talk to the GM. Rules have to be followed. Verbally, nothing works. It has to be on paper. As an HR person, the GM is technically under you. The welfare of each employee is your concern, so exert your rights and authority.

Addressing the Issue with Higher Authorities

Why don't you bring this matter to the attention of higher authorities? You should share this situation with them and demonstrate the legal responsibilities of your organization. I believe this will help resolve the issue.

Regards

Importance of Written Termination Notice

It is important to provide a written letter if you are terminating a person. According to me, you should privately approach your Managing Director (M.D.), explain the scenario and the behavior of your General Manager (G.M.), and ensure justice for the employee by understanding why the G.M. is not providing a letter to the employee. Otherwise, advise the employee to reach out to the court because a written notice must be given one month before employee termination as per the Industrial Relations (IR) Act.

Regards

Dear Mr. Ahmad,

Path to Becoming a General Manager (GM)

My question is, how would he become a General Manager (GM), and whether he belongs to your country or not. If he is from your country, he must know about some basic laws. Without this knowledge, he may not be able to take action against any employee under contract or on the company's payroll, even in a verbal statement. If not, he must adapt to the country and follow the rules as per the country's laws.

Understanding the GM's Actions

I don’t think you can solve this issue even if you meet him personally. I would also like to know the reason behind his actions against the contracted employee. Is it a valid reason based on your knowledge?

Think and act smartly. Follow the country’s laws and act accordingly.

Thank you.

Regards,
R V Chandrakumar

I understand this happened in Saudi Arabia. Generally, people don't follow proper rules in the Gulf. They flout laws according to their convenience. The employee can approach the country's labor department, and only then will the company try to resolve the issue; otherwise, it is not an expat-friendly land. Therefore, you may advise the employee to take a legal stand by going to the Labor Department with his grievance.

I hope you provided an appointment order to the employee upon appointment or sponsorship as per the local laws applicable. It is easier to talk in India than to resolve problems in the Gulf. If the employee doesn't have work, then he has to return to his country of origin. Since you have to find the proper local solution, remember that the solutions available in India may not be applicable in the Gulf.

Regards

I suggest that the employee should approach the Labour Court against such crooked managers, as they must be taught a lesson. This manager is imposing his ego on the employee. If this employee has all documents and procedures in place, then he should drag the GM to court.

Yes, it happens only in Saudi Arabia. Mr. Nasir Ansari and Mr. Vivan Chandrasher directed us in the perfect direction because we don't have any other choice left. The Managing Director lives outside of the country and has no concerns with company problems. The General Manager is the only authority and the one driving the company in his own direction.

An employee has decided to go to the labor court.

Thank you all for your comments and suggestions. After having 5 years of experience in this field, I still feel new in such situations.

Regards,

You have to work with the GM no matter how unprofessional he is. I am sure that you have not appointed him. It seems the GM is a liability to the company, and sooner or later, the owner of the company will have to make a decision.

Appointment Letter and Employee Acknowledgment

Have you given the appointment letter to the employees duly acknowledged by the employee in question? Please go by the terms of the appointment and close the issue as early as possible. Please note, the employee in question may pursue further litigation against the company regarding his termination.

With kind regards,
Vinay

Please note that the employee has written to request the formal termination letter, as well as compensation, gratuity (if applicable by law), and the experience letter upon his termination. In case of unlawful termination, the employee can complain to the labor department, and in the GCC, we all know that they first contact the HRM.

Therefore, I would suggest that you analyze the situation completely in line with legal implications and explain the same to your GM to resolve the case.

For your information, there are cases in the Gulf where the labor court found the company guilty, resulting in hefty fines and HRM suffering. To avoid such situations, please follow the local labor rules and regulations.

Regards,

Steps to Validate Employment Contract and Exit Procedure

1. Kindly validate the employment contract that you executed with the employee at the time he joined the company. If the employment contract is not available, then adhere to the Law of the Land for exiting the company.

2. Check if the General Manager (GM) is the authorized person to sign this document. If he is authorized and not willing to sign, then his manager can sign.

3. If the GM is not authorized to sign, please follow the company policy to issue the exit procedure to close.

4. Ensure that the employee has completed all the processes before exiting the company to safeguard both the employee's and the company's interests.

Regards,
Ranganathan V

Expecting that the employee is in possession of an appointment letter issued by an appropriate authority in your organization, a notice of termination is to be issued bearing the appointing authority's signature or by someone else authorized by the organization to do the same. The terms and conditions of his employment related to his separation, either by termination or resignation, must be followed if you want to adhere to the legal process.

Hope the issue is resolved in the right way.

Take care! Regards, Debashis

You can ask the employee to submit his resignation and serve a one-month notice period. Additionally, please ensure to clear his one-month salary in his full and final settlement.

Regards,
Priyanka

Re: Removal of Employee - General Manager

Any termination has to be done only after an inquiry set up by the personnel department/HR. The reason for termination has not been mentioned. Even in the case of theft, suspension pending inquiry is normally done. In a "habitual medical case" situation, an inquiry is constituted, and the employee is allowed to bring somebody to defend his case if need be. No arbitrary termination should be done.

Regards,
Kasturi Raj
General Manager
Ashwin Precision Products Pvt Ltd
Bangalore

Termination Without Inquiry: Legal Considerations

Strictly speaking, as per the law, an employee can be terminated for misconduct without an inquiry. The only problem in such cases is that the case will be open in court if it reaches that stage. The employee will have the opportunity to adduce evidence in court, just like in a domestic inquiry. The employer can defend the termination if it has concrete, foolproof evidence.

Regards,
Varghese Mathew
[Phone Number Removed For Privacy Reasons]

Thank you all for your comments. The employee has now taken the case to the Labour court, and it will take some time to resolve the issue. Anyway, what I have learned here is that anything can happen in KSA, and no foreigner can challenge them. Thank you all once again. Good day.