How Should HR Handle Pressure to Fire Sales Employees Without Pay for Missing Targets?

Legal Issues with Employee Termination in Sales

I have a query regarding legal issues with employees, specifically in sales, who don't achieve targets in the first month. Management pressures us to terminate employees without salary. Employees have formed a union to challenge HR regarding salary issues and to influence other employees working in different areas.

Is HR responsible for this if employees don't get a chance to accomplish targets and also face pressure to recruit new employees? Although I am not satisfied with management's orders, they said it is the duty of HR to fire employees without any compensation. As an HR person, I have empathy towards them, but I am unable to act because I also need to secure my job.

Regards

Apprise the management about the statutory obligations cast upon the employer to pay salary to such employees. It is a different matter that you may take appropriate action as per rules to terminate a probationer, but non-payment of salary amounts to a violation of the Shops and Establishment Act or ID Act, for which a penalty can be imposed. As an HR professional, you are also required to take necessary steps to protect yourself.

Thanks,
Sushil

As learned member Sushil pointed out, one has to follow provisions of the law. Terminate if you wish, but give them notice pay. Targets may not be achieved due to various reasons - some beyond the control of employees. Not paying their dues while terminating employment is illegal, for which the company may have to face legal actions. Do advise your management appropriately in writing.

Thank you for your response. I tried to make them understand, but they are not ready. They sought advice from an advocate and are prepared to fight.

My concern stems from being a junior HR in my company with senior HR above me who did not take necessary action or documentation against non-performers. Now that the senior HR has resigned, all responsibilities have fallen to me.

I would like to understand the potential legal implications for me in this situation.

Thank you for your reply. I tried my best to make them understand, but they forwarded cases to an advocate for a legal fight with employees. I am a junior HR here, and my senior HR (Sr. HR) didn't make any proper documentation against employees who are asking for their salary and threatening the company for the same. Now, I know that this is my Sr. HR's fault that he didn't send any warning mail, PIP letter, or inquiry letter, etc. Now, when employees ask for their salary, he resigned and absconded, and everything came to me. So, as an HR, what legal consequences will I face? I just want to know. Please help because my conscience doesn't allow me to leave the company at this stage.

Hello Prat_D, Looks like, at this point in time, you have no other option but to save your skin.

Sales guys, anywhere, are given some time to begin to prove their targets—it takes at least a couple of months to get tuned to the working culture of the new company. Expecting and punishing for the first-month target surely isn't a good management practice.

Communication and Documentation

First and foremost, begin to communicate in writing from now on—regarding every issue, including this one as well—even as you follow whatever is told to you by the management. You never know when you will need proof to defend yourself. Also, even when anything is discussed or told verbally, consider recording the points separately.

Job Search and Management Practices

Begin to look for a new job—your Senior HR must have seen this coming where he would have become the scapegoat for such unprofessional management's unreasonable actions and hence resigned before he gets trapped.

You haven't mentioned how long you have been working here or how big the company is. Some options may depend on these aspects too.

All the Best.

Regards, TS

Role of HR in Communicating Important Matters

HR is expected to communicate important matters to higher-ups. You have an advisory role in many matters. Put the whole matter in black and white. Make sure that you mention your verbal advice to your immediate HR senior who has left. Even if matters are given to you verbally, put it in writing subsequently and keep full records. Documents will always save you when actions are rightful. Your loyalty to your company is admirable, but you must keep your personal and official position clear and avoid becoming a scapegoat in case things go into legal battles.

Hi Mr. Satheesh & Mr. Nathrao, I joined the company 8 months ago, and my boss joined 4 months ago. The company is not big; it will complete 3 years in July. When I joined the company, they used to pay the employees for the first month even if they didn't meet their targets. However, sales employees frequently left after receiving their salary without doing any work. As a result, the management started putting pressure on new joiners to meet targets and adopted this practice.

I verbally informed my senior to conduct a proper evaluation process to avoid such situations, but he ignored my suggestion and even recommended to higher authorities to terminate me for the same reason. Eventually, he left the company himself.

Now, the owner of the company is from the sales department, and I have to report directly to him and follow his instructions. When I expressed my desire to leave, they informed me that since there is no other HR personnel available, I need to serve a 2-month notice period before leaving, and I don't want to leave abruptly like my senior did.

I have already started looking for opportunities. With 4 years of HR experience, I am concerned that leaving after only 8 months might portray me as a job hopper, which could have a negative impact on my CV.