Suddenly Let Go During Probation: How Would You Handle This Unfair Dismissal?

Hi, they just asked us to leave by submitting our ID cards at the reception. No HR has spoken to us, and there is a person called "Lead – Revenue Assurance" who says the company is not answerable for your job loss. Instead, try hard outside, and you will be getting a job in a week's time. As the company offer letter states, any person in the probationary period (first 6 months) can be asked to leave without reason, giving him/her the basic salary.

Ensure Proper Documentation During Job Transition

Please make sure you take all the letters of clearance. This is the least they should be offering you. The documents would be quintessential to landing the next role. Remain transparent while you job hunt and share that the reason for retrenchment was the absence of a project. This is a transition time for you; use this brand to land the next best role.

Since the contact numbers you shared are in Mumbai, are you into tech sales? It's always good to walk away to a better day. Wish you all the best!

Regards

Nothing can be done if a company goes for a layoff stating 'Reduction in force.' I have seen a few layoffs, and I know how an employee feels in this situation; it's not easy to get a job, especially for an employee who is a complete fresher. Unfortunately, nothing can be done! Sorry. Only the company will be bound to pay remuneration as per the agreement (if any) within 48 hours from termination by the employer, and you may request the HR department via suitable channels (Registered Post, Verbally, Emails, etc.) to provide you a relieving letter, showing the cause as 'Reduction in force due to poor market conditions.'

I have seen this twice in my career. Though the company's reason for the layoff in my case was genuine and valid. Today, I am thankful to God as still many doors are open - I don't need to knock on doors always; people call me. It's like if someone possesses true skills and competency, he/she will get a job irrespective of the market situation. I believe the same will happen with you. You will get your chance to prove your skills.

May God bless you and take care.

Off the record, I wish to say something to you (at least for the next 5-8 years): Buddy, in the coming years, many opportunities will be there. Select jobs that can provide you the maximum salary (rather maximum take-home money). Don't seek job stability or brand value. If you go for a brand, then consider both the designation and salary. Work for 2-3 years on average, then switch if needed. But never quit without having another job in hand.

If during an interview, any HR personnel ask about your stability, tell them on their face, "I am a professional who works for money." In private companies, jobs can by no means be made secure, and trends show that corporate houses will follow 'Hire and Fire Strategies.' So, I would go with short-term career objectives and prefer opportunities over long-term career objectives. And don't lose heart if you face this kind of situation again.

Many seniors may say XYZ against my particular advice. I would say they are not wrong because they still believe in the 'Experience Model of Career Growth,' where employees with maximum experience get preference in promotion and quickly get rehired (experience and stability issue) if they ever face early retirement or layoff, etc. But they don't know what their silence for the previous 10-15 years resulted in.

A total mess is there in the market; non-executive directors, CEO, CFO, CHRO are not responsible for this day. Up to some extent, recent amendments made in corporate laws, earlier central government's policies, and the complete failure of Indian Human Resource professionals to understand the difference between US HR concepts and the Indian economic/legal/financial framework, thereby implementation of policies and strategies. FYI, HR methodologies and OD intervention were never developed in the US. 90% of corporate houses in the coming years would understand what a few idiots have done in the past 10 years.

It's funny to see that major corporate houses still believe that professionals are not required for the HR domain (except corporate houses with severe financial pressure). But good news for KMP (Key Managerial Personnel), soon their hands are going to be burnt too. Employees and employers both are suffering now. Those who have understood what I mean to say, good, but those who haven't understood, soon will understand. Chances are high that suffering will increase more in the coming years.

Anyway, these details can only be understood by an HR professional with wide exposure in the market, experience, and with a hardcore knowledge of finance, laws, Human resource, and OD.

Regards,
Sovik B

This might happen depending on how long the person was on the bench without a project. Was the person involved in a project after joining L&T? Have they generated revenue for the company? How many project interviews did they attend, and why weren't they selected in those interviews? The main thing is to generate revenue for the company by being part of a project. L&T provides plenty of time and opportunities to get into a project. I have known people who have been on the bench for a year or so. The only requirement is to join a project and generate revenue for the company. The above case might be due to a lack of skills or the inability to succeed in project interviews.

The Complexity of Employment in Indian Companies

The problem is far more complicated with Indian companies or counterparts of MNCs in India. Within the last 3-4 years, the Indian economy has suffered numerous turbulences. I can name one company after another that was forced to follow 'Hire & Fire' strategies due to the poor global market, lack of projects or business development within India, internal priorities, legal framework, etc.

Some of the companies affected are (2011-Till date):
- Oracle
- IBM
- L&T
- HCC

And the list continues (a long list). Employees often don't get a chance to prove their competency.

If you look at the overall registered companies in India, there is shrinkage. Additionally, those that are still present include financially weak companies and some involved in fraudulent activities. About 10% closed due to window dressing of financial statements.

- TOTAL NO. OF REGISTERED COMPANIES = 13,69,362.
- TOTAL NO. OF COMPANIES CLOSED (till DEC 31, 2013) = 2,67,639.
- TOTAL % OF COMPANIES CLOSED IN CALENDAR YEAR (2013-2014) = 19%.

States Impacted Most

- TOTAL NO. OF REGISTERED COMPANIES IN MAHARASHTRA: 2.79 lakhs.
- TOTAL NO. OF COMPANIES CLOSED IN MAHARASHTRA: 56,008.
- TOTAL NO. OF REGISTERED COMPANIES IN WEST BENGAL: 1.78 lakhs.
- TOTAL NO. OF COMPANIES CLOSED IN WEST BENGAL: 41,621.
- TOTAL NO. OF REGISTERED COMPANIES IN DELHI: 2.57 lakhs.
- TOTAL NO. OF COMPANIES CLOSED IN DELHI: 41,458.

Why Are Companies Failing?

1. The New Companies Act 2013 is not yet applicable and contains sections and clauses that are not practically designed. Entire fund management is the biggest challenge.
2. Indian counterparts are failing to develop from the aftereffects of the recession due to Central Government strategies that provide advantages to a few selected people. Overall, a weak global market and no significant contributions from the government to boost trade and commerce are additional factors.
3. Whether it's FEMA, IT ACT, Finance Act-Taxation, Money Laundering Act, or the new Companies Act 2013, there was a control the government exercised. Effective fund management is hampered as a result.
4. The current biggest threat to the Indian economy is 'Hedge Fund.' By hedging funds, players can bypass licensing and create tremendous pressure on Indian companies/counterparts through direct and indirect means.
5. Previously, the government tried to restrict trade and commerce as much as possible. This is why impractical conditions are imposed.
6. Large corporate houses were not equipped with any special repellent suit to shield them from the overall effects.
7. Liabilities of KMP (Key Managerial Personnel) have increased significantly, and penalties, fines, or indirect consequences of failure will force them to seek perfection. Thus, if someone fails (for example, an engineer), they may not get another chance to prove themselves. If a particular project closes, employees may not be hired for another project due to cost concerns, as project heads will be under continuous pressure to maintain profit/loss accounts through a chain of management. This is an indirect effect.
8. The entire chain of management will be under pressure to fulfill vested liabilities and conduct business at arm's length. Therefore, from now on, business gestures, sympathy, and kindness will be severely affected. Although people may claim that only KMP or management will suffer, in reality, in business, the effects management faces will impact employees as well.

Why Will the HR Department Face Challenges?

1. Lack of knowledge in other domains like finance, economics, accountancy, and laws (extensive knowledge is required).
2. The consequence of the first point will be a failure to perform detailed complex analysis (not everything can be done solely through technology) by a group with expertise in different sectors individually. Detailed analysis will require combined knowledge to understand cause and effect properly.
3. Manpower planning will require more skills than just core competencies, expertise, or experience, especially for large organizations.
4. Conventional techniques, strategies, or tools may not work. Out-of-the-box thinking will be required. Simply training someone in a few Excel figures, graphs, charts, rules and acts, or basic payroll or manpower planning will not sufficiently help giant companies face practical challenges.
5. Unfortunately, complications and challenges will increase further, and companies will be compelled to implement 'Hire & Fire' policies. While it may seem that these strategies will increase costs, the opposite will likely occur.

Regards,
Sovik B