Employment Termination: Ethical Management of Layoffs

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The differences between fair and unfair dismissals

The dismissals that can be considered unfair, in most cases, relate to the circumstances in which employees are denied some of their rights, the opportunity for the work and life balance, or the leave due to parental or family reasons.

Particularly, the employees have a right for rest and recreation and are not supposed to work beyond their scheduled hours. The same proposition concerns the part-time and fixed-term employees. The working hours are prescribed by the contract, and none of the employees can be dismissed on the grounds that he or she refuses to work overtime or during the hours beyond the schedule (Eger, 2003). The example of this type of an unfair dismissal can be a situation in which the employee who agreed to work part-time during the evening hours is transferred to work during the day or the changes to the schedule made by an employer hinder the employee’s other commitments. It is an important aspect of the dismissal regulations because more and more people tend to work part-time, including students.

The family reasons that are classified as the grounds for unfair dismissal include not only pregnancy but also different kinds of parental leaves connected with maternity and childcare, such as adoption leave paternity leave, etc. (Eger, 2003).

However, the fair dismissals can relate to two kinds of reasons, those that relate to the employee’s behaviour and the reasons external to the worker’s conduct. The first type includes the situations in which the employee’s conduct in the workplace resulted in dismissal. It can be not following the terms of the contract or, in the other case, the insufficiency of the employee’s qualification. For example, if the company introduces new equipment to its production, and the employee has no qualification to work with that equipment or desire to acquire such qualification, the dismissal is fair. The external to the employee reasons usually relate to the redundancy in the company.

The importance of exit interviews to employer and employee

An exit interview is a form of the survey that an employee is asked to fulfil when he or she leaves the company. Even though it can give the important information for both parties, this form of interviewing is often overlooked.

The benefits that the employer can receive from the dismissed employee are more evident. Firstly, such form of surveying gives the human resources department the feedback that they cannot always obtain from interviewing the staff. It includes the information concerning the dissatisfactory aspects of the work conditions. On the other hand, knowing in which nuances the expectations of the employee about the workplace did not agree with the reality, the human resources department and the employer would be able in the future to specify those aspects for the candidates for a job. It would give the better perception for the future staff and reduce the turnover. If an employee mentions the problems concerning the work conditions or performance issues, they also should be addressed by the management, if possible.

For the employee, the completion of the exit interview helps to analyze the experience of working for the company from which he or she was dismissed. This step is important because it leads to the realization of the personal preferences and priorities, helps to recognize the unsatisfactory aspects of the overall picture. In the situation, for example, if the employee was dismissed because of his or her conduct, it can also assist in learning from the personal practice and turning it into a positive experience.

The key stages of managing redundancies

Managing the downsizing is always a complex process that involves the employer, the employees who were dismissed because of redundancy, and the human resources department.

Redundant job position, in general, refers to the element in the organizational structure that needs to be eliminated from the work process. The reason for that usually is that the company found more efficient ways of dealing with the task that the employee in that position was supposed to perform (Cameron et al., 1991)

The employees downsized because of the redundancy feel pressure of looking for another job. On the other hand, the changes in the organizational system can always have some unpredicted effects. Thus, to successfully manage redundancies, the human resources professionals and the employer have to undergo a few stages.

Firstly, to deal with the dismissed employee, a manager needs to explain why the dismissal has a fair reason and document this fact. If the employee receives the feedback concerning why he or she was selected to be dismissed, they can turn it into a helpful experience and not blame the company (Eger, 2003).

Secondly, to prevent any unexpected changes caused the process of redundancy it should be carried out as slow and as thoughtfully as possible.

Finally, the third stage is to deal with all the disputes, if there are any, which occurred in the process of redundancy, as well as gather all the important feedback from the employees’ exit interviews to improve the company’s functioning.

References

Cameron, K. S., Freeman, S. J., & Mishra, A. K. (1991). Best practices in white-collar downsizing: Managing contradictions. The Executive, 5(3), 57-73.

Eger, T. (2003). Opportunistic termination of employment contracts and legal protection against dismissal in Germany and the USA. International Review of Law and Economics, 23(4), 381-403.

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