How to fire an employee with minimal cost — advice

Russian business in General and ecommerce is experiencing mass layoffs. From one side sanctions, political and currency instability, the complexity of the investments and projections and on the other hand is the collapse of markets, and reducing income — mercilessly cut Costa. Last year many analysts and HR consultants predicted a massive wave of layoffs and cuts, but promised that after the experience of the 2008 crisis, a new recession will pass with status light. However, this year brought about changes.

If during the last crisis, the employee could leave in “free swimming” with a decent “Golden parachute”, now its “go” with two salaries. What trends in cuts dictates the current crisis and how to part with an employee, not fearing to spoil the reputation, but to cut the wage bill. How to get fired this year.

Dismissal article. 74 TC (change of terms of labour contract). Under the change of organizational working conditions customize all. The improvement of customer service conditions up to trivial changes of the organizational structure, as well as a decrease in wages. Disagree offer to resign within two weeks of payment.

Dismissal for violation. A delay of four minutes, digging up old “sins” overspending hospitality expenses during the meeting with the client, the lock passes into the building to capture the “truancy”. As the staff figures out what to do, absenteeism provided.

Firing one or two salaries under the agreement.

The administration under duress on unpaid leave and non-payment of premiums. The disappearance of companies, together with the workbook and the last paycheck in one day.

Forced dismissal with the transition to civil-law relations. The employee offered to open IE with paying the taxes. So the employer assumes the risks of sick leave, vacations, maternity leaves and guarantees of dismissal.

This article is intended for medium-sized companies and medium-sized businesses seeking to grow fast. As examples of experts 48Prav.ru used real cases from the practice. Bad news. Money no one has.

They are not the employers, who have to struggle with falling consumer demand, instability in the foreign exchange market and renting in arbitrary units, increasing taxes on trade and other fields, defaulting counterparties and the increase of accounts receivable and the budget sequester. As a consequence — large-scale staff reductions and point dismissals. Recently about his plans for the reduction of staff said “Beeline” company, which, seemingly, is not poor. In fact reduction taking place in all industries and economies of the business, and some branches of Russian and international insurance companies and banks office fire in full force.

What can we say about organizations are weaker or medium business. The dismissal of top managers — it is very dangerous and costly. On one company the Crimean Council of founders decided to change the Director, who participated in the creation of the organization. Employment agreement with former Director concluded was not, and that, of course, appealed to the court by providing all necessary documents and demanding payment of the salary calculation more than 10 million rubles a month.

The point in this case is not yet set, but the dispute considerably interferes with normal business operations and causes her to have enormous reputational risks. But workers money, too, and theyre ready to fight “to the last drop of blood”, threatening the courts and disclosure of confidential information to obtain from a former employer “delicious” compensation.

If another three or four years ago, the lawyers accompanying the dismissal, was able to seize from 12 to 24 salary per person plus bonuses, preservation of health benefits and beautiful letters of recommendation, from February 2015 mass of good “outs” ended. The maximum that can be obtained in cooperation with a competent lawyer — this 5 salaries. But most often the former employee and the company of the agreement, with one to two salaries. By the way, in the same aforementioned “Beeline” office employees receive with the reduction of the salary, leave and by agreement of the parties.

The trend of the current crisis — at least the official abbreviations. To fire unprofitable. You have to pay compensation, vacation pay, comply with required legal procedures. Therefore, it is more profitable to dismiss an employee by agreement of the parties or to force him to leave. Unpaid wages, working off the account, setting impossible tasks, changing the conditions of the employment contract — an enumeration of the ways you can continue to infinity.

Yes, there is a risk to spoil their karma and to meet with the former employee in court, however, karma is the concept of the virtual, and the court will run not everyone is fired. Still, if the employee starts to sue the employer, for example, in the same narrow professional world, whether in the banking or insurance world, he risks not to get a good offer from a new employer. The savings is obvious. However, this method of savings is highly questionable.

To fight to the last drop of blood decided shortened the programmer of one of the Moscow organization. 4, he pleaded with his employer and 4 times was restored in the workplace by a court decision. Every time the programmer received an annual salary after the process and each time the Director of the enterprise found a reason and fired the unsuitable employee in a couple of days after recovery. After another fourth reinstatement, the employer made to the employees persistent proposal to pay the amount in four annual salary as compensation for dismissal.

The dismissal process in the crisis has become more and more like a guerrilla war. The leadership is trying to disclose as little information to use a variety of tricks, forcing employees to leave on their own or finding faults for which you can dismiss. However, dont give up and let go.

In the course of going to trial, disclosure of intimate details of the lives of chiefs, confidential information relating to the “internal kitchen” and dubious transactions, the company would like to keep secret. Of course, this can be dealt with in court, find guilty, to bring him to justice, to remove the information. But the point has already been made — the damage was done. In addition, how the reforms impact on the company of those who are still working for the company.

How to deal with former colleagues, can do with them. Accordingly, the companys competitiveness on the labour market also falls. Reduction is a delicate matter, and each dismissed employee can bring the companys problems.

For example, the dismissal of sales managers need to remember that salary is only one-third of their real wage. Naturally, when you reduce the question arises about the payment of bonuses. If the company is not willing to pay and starts talking about the fact that the decision on payment of bonuses will be taken at the end of the financial year that need to talk to the audit, and generally turning away from a direct answer, the employee goes directly to court because his former employer is no longer bound to any moral obligations. Judicial disputes, in any event, are unnecessary financial costs.

In addition, the “salespeople” are able to negotiate and “sell yourself”, so it is much easier to pay them 30-40% of the bonus and to part friends than to get involved in a long litigation. Do not forget that from the time of notification of dismissal, the employee can “insure” and copy the customer base, and collect a lot of confidential information, which later will not fail to bring to bear. In General, the human factor in the dismissal plays a crucial role.

Officer or employee of HR Department, saying a phrase. “We dont care what you will be. Our task — to let you go”, in fact, triggers fired in response. But if added to this is the withholding of any information about the real state of Affairs of the company or the reasons for dismissal of a particular employee, then it is guaranteed that he will go to court and will have legal proceedings with the sole purpose to cause maximum inconvenience the former employer.

Another mistake that many managers and HR departments — this notification of resignation on Friday. First, the employee and his family will be spoiled weekend. And secondly, over the weekend he will find a lawyer and consult with him. If declining a few people, they can unite and develop a common strategy.

For example, after learning of an impending resignation, but has not yet received formal notification employees on the same day to form a Union and to accuse the employer of violating the procedure of dismissal. Or to leave the hospital on Monday, thus winning time. Deciding to mentally prepare the employees to the dismissal and informing them of their imminent decline, the employer often makes a mistake. There are frequent cases when employees on Friday said that on Monday they will be handed a notice of dismissal.

Consulted with counsel, dismissed created the Union, which then had legal proceedings with the employer. In two cases, reducing broke up with a former work place with a very decent compensation and in one case the need for layoffs in the first place — the company realized that it is advantageous to keep these workers than to dismiss them with the required “otstupny”. To lay off employees and restructure is the right of the employer. But as a subordinate to fire and stay on good terms.

There is no single recipe, since all very individually. But the openness and the human approach is the most correct tactics. So, if you have mass layoffs, the head of the company must personally announce it at the meeting, explaining all the reasons and factors caused by market conditions and a complex state of Affairs in the company. If it is possible to avoid the reductions due to a General reduction of wages, this option have to offer.

In some companies employees volunteered to take this step to avoid the dismissal of some colleagues. If this is not possible, the open position of the management and transparency of process will help to avoid unnecessary aggression those who are “unlucky” and reduce their expectations for compensation.

If you have a point of dismissal, it is very effective will be individual interviews in which the Director or head of Department will inform to the dismissed employee that the company regrets the need to reduce, has no claim to it and are more than willing to support him. For example, you can give the employee the right of free access or to free him from the need to be in the workplace, so people could safely look for a new job. All personnel know. If you create another division, he appears some time after layoffs and cuts.

In practice, however, for some reason, this is not always observed. As a result, resentment and attempts at revenge from those “who didnt”. Much more painless to disband the division and to create posts that dont fit the experience, qualifications or responsibilities of dismissed employees. First of all, the workers themselves will have less complaints. Secondly, if the case goes to court, then the employer would be a powerful argument on his hands.

Speaking about the planning of downsizing, not to mention a special category of personnel who, due to temperament or high incomes do not understand that the market situation has changed. They live in blissful ignorance about the consequences of the crisis and the General economic situation, getting your salary and bonuses. Such people are not ready to compromise, they will not accept payment in two to three salary and they will do everything to make as much as possible to hurt the company.

Such people need to work individually and rigidly, preferably by involving external experts. When such employee will understand that he will be running a campaign involving the legal profession, the faster hell compromise. Downsizing is stressful for all parties involved.

Not only for leaving staff, but also for those who dismiss, for the organizers of the dismissals and for the whole team. If the company plans to reduce staff, it is better to entrust this work to professionals. HR can be a competent in recruiting, but to avoid a lot of mistakes while reducing. Therefore, interaction with an expert in the field of labor law (not a lawyer of General practice) will not only competently and relatively painless to reduce staff, but to avoid possible lawsuits and revenge of the wronged employees.

Source: google.co.uk/blog/what-startup-consultants-can-and-can-t-do-for-your-startup/

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