[PatienceWins]

Originally Posted by bluevolt

So there is this company 'XYZ' (quite a large company / global MNC with many thousands of employees) in which one of my relative works. The HR is calling people who are on the bench and asking them to resign by EOD else they will send termination letter. The employees who are on bench are due to projects that were axed due to COVID situation.

While any private company can layoff at its will but isn't this method a bit too extreme?

How does the affected employees handle such situation?

This is not new. In fact, the security escorts the employees out with their belongings right after they receive the communication from HR in a meeting room.

Even though the employees are asked to leave immediately, they are paid compensation of a few months salary and their official relieving date would be in the future. This helps the employee to find another job without any gap in employment. Is that the case here?

[srini1785]

Originally Posted by SmartCat

I don't have any experience working in a large company - hence this question: what is the difference between asking an employee to resign and sending a termination letter? What are the pros and cons of either methods, for employees and employer?

Asking an employee to resign : A voluntary act by the employee (at least on paper).

Sending a Termination : A direct act by the company to fire an employee.

All companies prefer the first. Less legal hassles.

[GeneralJazz]

Originally Posted by SmartCat

I don't have any experience working in a large company - hence this question: what is the difference between asking an employee to resign and sending a termination letter? What are the pros and cons of either methods, for employees and employer?

Originally Posted by srini1785

Asking an employee to resign : A voluntary act by the employee (at least on paper).

Sending a Termination : A direct act by the company to fire an employee.

All companies prefer the first. Less legal hassles.

Exactly.

If an employee sends a resignation letter, it will be as if he is resigning on his own free will. He will be paid all his dues and he can start looking for a new job.

If he has been terminated, it would appear as if it was something wrong from his side. His career prospects would take a hit, as he would have to explain to any future employer why he was terminated. This also leaves his current employer open to wrongful termination lawsuits. Termination is a messy affair unless there are very valid reasons (like misbehavior or theft etc.).

Hence the employer giving them the choice. Either case, the employee loses his job.

[hothatchaway]

Originally Posted by bluevolt

So there is this company 'XYZ' (quite a large company / global MNC with many thousands of employees) in which one of my relative works. The HR is calling people who are on the bench and asking them to resign by EOD else they will send termination letter. The employees who are on bench are due to projects that were axed due to COVID situation.

While any private company can layoff at its will but isn't this method a bit too extreme?

How does the affected employees handle such situation?

Companies in India take advantage of the ignorance of employees and resort to such tactics. The concept of 'at will' employment contract does not exist in India where neither employee nor employer is "bound" by any obligation to each other. By obligation I mean safeguards like due cause, notice and several other factors. This exists in the USA where employees can be asked to go at a moment's notice. In the same vein, I as an employee in America can also leave at a moment's whim

If what you have stated is true at the workplace your relative works at, the aggrieved employee, especially if she is an individual contributor and not a manager, is within her rights to ask HR for a show cause. Not even so called "performance" issues can be grounds for such termination. Misconduct, yes, but an internal enquiry needs to be conducted first. Note that such safeguards may not apply to senior employees. By senior I mean people who manage teams, have a "discretionary" role to play in the company, draw "high" pay. Even these may have to be proven in a court of law by the employer should they be sued. Not too long back, an IT major was taken to court by an employee who was forced to resign and relief was granted to her. Request you to search online for the case details.

During normal times, employees, especially junior ones know that they will get a job elsewhere, hence they take the paltry severance package and beat a hasty retreat. Ignorance and unwillingness to stand up for ones rights are also contributing factors. Nobody wants to be seen as a "troublemaker". Given that joblessness now will be rife. I am not so sure.

[alpha1]

Originally Posted by hothatchaway

During normal times, employees, especially junior ones know that they will get a job elsewhere, hence they take the paltry severance package and beat a hasty retreat. Ignorance and unwillingness to stand up for ones rights are also contributing factors. Nobody wants to be seen as a "troublemaker". Given that joblessness now will be rife. I am not so sure.

IS there a difference between termination and lay-off?
What if one gets terminated with a letter stating that it is due to mass lay-off in the organization?

One thing is for sure corporate culture makes everyone a extremely timid. In fact the more senior one is on the ladder, the more insecurity.

Originally Posted by GeneralJazz

Exactly.
His career prospects would take a hit, as he would have to explain to any future employer why he was terminated. This also leaves his current employer open to wrongful termination lawsuits. Termination is a messy affair unless there are very valid reasons (like misbehavior or theft etc.).

And what do you think is the impression one generates by resigning without offer letter in hand?

[hothatchaway]

Originally Posted by alpha1

IS there a difference between termination and lay-off?
What if one gets terminated with a letter stating that it is due to mass lay-off in the organization?

Mass lay offs are different from individual case by case termination. For the former to happen, the organization must file a business case with the labor commission explaining the curtailment of business operations. They must show that the lay offs are due to loss of business and not a sly tactic of retrenching staff. European companies and companies operating in Europe have even more stringent regulations where they have to convince the works council, which has, among others, representatives from labor unions. All MNCs play this by the book. It's only the Indian companies which take liberties.

I am also responding to your point on corporate employees being timid. Well, it's clear who is to be blamed for that, and it's not the companies.

[SoumenD]

Originally Posted by bluevolt

While any private company can layoff at its will but isn't this method a bit too extreme?

How does the affected employees handle such situation?

Yes it's indeed taxing on the individual but this is not new at all. This is the exact process I mentioned a few posts back. Have seen it happen in 2008/09 recession and now seeing it again.

Re-quoting the same:

Originally Posted by SoumenD

Having seen 2008/09 recession I take these announcements with a pinch of salt. What these ITeS firms do is force employees to resign themselves rather than handing over the pink slip. That way they make the picture look as if they have been really considerate but the attrition is high since the employee resigned. Only the ones who don't resign under pressure are laid off explicitly. Have seen this happening in top 3 Indian IT service firms during last recession.

In another news making rounds these days, a big ITeS employer is benching employees and asking them to resign forcefully. Not mentioning the name for obvious reasons but a simple Google search would reveal the details. Bad times ahead. This recession is going to rattle the job market worse than the last one

[V.Narayan]

Several of the posts here are employee centric or more correctly big company employee centric. Some posts reveal a lack of understanding of what goes on at the employers end in a global catastrophe that is unfolding now. As lock downs lift all over the world expect to see several companies shrink in size as their markets or clients shrink or in some cases disappear altogether. If a company in India involved with say export of IT services or widgets discovers its overseas clients cancelling orders it would be unrealistic to expect them to even have the financial ability to keep facilities and employees on. A few biggies such as TCS make headline grabbing statements for political reasons; however that is not reality. Few companies outside the IT big 5 sit on piles of cash. How much damage has been caused to our integrated global economy will now be discovered over next 3 months (July to September quarter). An order book is the starting point of any business. The real risk of shut downs starts now. Conserve your cash. When as employees we expect the freedom to switch jobs at will when we get a higher offer it holds the other way around too. Sorry for the harsh truth.

[hothatchaway]

https://www.google.com/amp/s/www.new...or-2164543.amp

Cognizant has allegedly asked the employees to resign as they are unable to secure projects. Karnataka State IT employee Union (KITU) spokesperson told The New Indian Express that they have started a drive calling all Cognizant employees to not tender their resignations under management pressure.

“The mass retrenchments are happening in violation of the labour laws. We will register a complaint with the State Labour department,” he added

[Samurai]

^^^

You mean the same Cognizant that splashed the headlines for offering extra salary during lockdown? I was curious about what they were trying to do then.

https://www.rediff.com/money/report/...l/20200327.htm

[AMG Power]

Originally Posted by V.Narayan

Several of the posts here are employee centric or more correctly big company employee centric. Some posts reveal a lack of understanding of what goes on at the employers end..

Not just on this thread but on all similar job / IT / opportunity related threads. Only to be expected I guess because there are more employees than employers.

The lack of understanding of what goes on at the employers end is not only in the extreme scenario of a global catastrophe when it should be easier to fathom but also in normal business related situations. Admittedly there are bad eggs amongst employers but an understanding of a recession or a lack of business / revenue and its impact on employment is something, I would think, be possible to understand for most.