- It Life Fun or Problems – Series 2 – PART 1
- “Clean Exit” – Sacred Cow of HR and Employees
- “Company has Right to Terminate Employment any Time” – True or False?
- Compliance Violation and Termination – Facts to Know
- Nazi Gas Chambers and HR Exit Process
- What Legal Rights I have as an IT Employee?
- How Much it Costs to Approach Labour Department?- Zero!
- Fixed Term Employment : A Ticking Time Bomb
- HR Targetting Pregnant Employees is Illegal and Inhuman
Shyam Sundar who is a part of NDLF IT Employees Wing is having around 20 years of experience in information technology. He wrote an article series on “IT employees Life Fun or Problems” to create awareness about various issues faced by IT employees. This write up is second part of Series 2.
In the last part, I asked you to list down the reasons as to why companies are asking employees to submit self-resignation. The answer to that is straight as I explained in that part itself. The company doesn’t want to get into legal troubles and will show forced resignation cases as normal attrition. This is clear from the response of the companies, when any media representatives ask them about layoffs. The standard answer is that “we are not doing any layoffs and we are only adding new employees”. So to the outside world, these exits are not shown as terminations; they are closed as normal exits.
When faced with HR threat that the management has decided to let the employee go, what is the main difference between voluntary attrition and termination (in the employee’s perspective).
|1||Employee thinks that probability of getting a new job is high in case of regular exit as his/her name will not be blacklisted by the company.||Employee feels getting a new job will be difficult as letter he gets from the employer is that of termination. In that case, the next company will hesitate to hire the employee.|
The above argument is valid only when employee gets new job within 2-3 months time. Let us see why.
Firstly, If you see closely, most of the employees affected by layoffs are above 35 years of age.
Secondly, the company wants to cut down the senior workforce and want to substitute that with freshers.
IT companies used to recruit science and engineering graduates. To cater to that demand number of engineering colleges increased drastically and every year lakhs of engineering and science students who chose information technology as their main stream come out. Many such graduates are waiting for jobs for many years now. Engineering degrees are losing their sheen and many students/parents are not admitting their son/daughters for engineering courses due to this employment crisis.
But IT companies started recruiting non- science students like BA or BCom graduates for the past 7-8 years now. If you see recent times, there are companies which start recruiting even 12th standard students.
If you really think why IT companies are ignoring engineering students with information technology as main stream and recruiting 12th pass out people?
The reasons are as below:
- Fresher with Engineering back ground will expect a salary of Rs 25,000 per month on average where- as salary of these 12th Std/non science students range between Rs 7,000-15,000
- Fresher with Engineering degree will jump job if they get a better offer where as these 12th Std students will continue in the low paying jobs for many years. Because, they are simultaneously undergoing master degrees with the help of these IT companies.
- It reduces the cost of overall delivery and improves the bottom line of the company o a greater extent.
Under the same logic, companies are laying of senior employees to cut down operation expenses (but cite performance issue as reason). So almost all companies don’t want to add new employees with higher experience band as it adds up to operational cost and affects bottom line. So it becomes difficult for employees with high experience band to get a new job. Even if some employees are offered jobs, their salary package is almost 50% less than the last drawn salary. Now, many companies are recruiting these employees as contractors.
Due to the above reason, if an employee does not get a job within 2-3 months of being laid off, gap of being jobless increase. So after 2-3 months, even if the employee has proper relieving letter, prospective employers easily identify that this employee is laid off from previous employer and refuse to hire them.
I know hundreds of employee who submitted resignation due to company pressure, and are searching jobs for more than a year now. (Definitely my intention is not to demotivate employees or blowing negative thoughts to employee minds but to put forward the other side of clean exit). So resigning the current job without getting a new job is very risky. Definitely known devil is better than unknown angel. So stick with your current employer until you find a new job and refuse to resign.
If you feel your job is under threat and decide to resist forced resignation, you may be subjected to the following threats by your employer:
- Your employer will release you from the current project and put you in bench.
- They will add various locks to stop you from taking up a new project. Employees with these locks will not be considered for any new projects.
- HR will frequently call fo interviews with different management people and force you to accept resignation.
- They will make you sit in bench for long duration. I know a few employees who are in bench for more than 18 months in some companies.
- Employees in this category will not be given any salary hikes, promotions and not considered for any onsite opportunities.
- In worst case scenario, they may terminate a few employees citing redundancy as reason, even though it is against law. They just take a chance that the employee will not fight the termination.
As I mentioned earlier, I have talked with more than 300 employees who faced layoff threats. The chances of termination is very less and it will be less than 5% in most of the companies. To safe guard from being terminated, employee can seek legal support when they feel they are under threat. If they seek legal support, chances of being terminated is absolutely less. I will explain how to get the legal support in the coming parts.
The exit interview is a bargain game between HR officers and the affected employee. HR officer is having the following role in this interview:
- They have to convince the employee to submit self-resignation.
- They use all their bargaining skills to convince employee to submit.
- They are following management orders and they will act based on the consent obtained from the management/legal teams.
- They don’t have any decision making power. They are just the tools for carrying out the decision of the top management and help in facilitating smooth exit process.
- If employee resists to resign, unless they get direction from the management, they will not terminate on their own.
- If the company had decided to terminate, they will not make this game and issue termination letter, block access and initiate exit formalities.
We need to understand why companies are hesitant to terminate employees and ask employee to resign on their own. The legal procedures to be followed for companies to perform termination is explained in series 1 but I will repeat once again for better understanding:
- If company is having more than 100 employees, company has to seek permission for retrenchment in case of redundancy. Labour officer and government may or may not agree for this retrenchment.
- Company has to pay 15 days of salary for every years of service of employee.
- Retrenchment will be done on new employees who join recently rather than old employees (Last In First Out).
- If company is recruiting at a later stage, first preference should be given to retrenched employees.
- Employee can seek legal remedy in case of termination. If more and more employees take up legal battle, then it will become a big bottleneck for the company.
That’s the reason companies are hesitant to retrench/terminate employees and try all possible ways to make them resign on their own. So employee should understand the legal rights and fight for their rights. They should resist to resign. It is simple, just don’t sign anything you are not willing to do. If every employee starts doing this, then big change of job protection will be gained in our industry.
In the next part, we will see what if employer terminates the employee and issue termination letter to them in detail.
– Shyam Sundar