Saturday, February 28, 2009

Some retrenchement issues.

Over the past few weeks I’ve took on sort of a HR consultant role. I’ve been advising some of my friends and candidates on some clauses and HR initiatives on retrenchment.
So here is one;

My friend got asked to submit a six-month post-dated resignation letter. He is now asked to head another team but also given the green light to resign as and when he wants, which is good and also able to look for a job in the mean time.

From my point of view this is a win-win situation. I cannot see the management taking another step in retrenching him in a short span of time and he is free to explore other jobs in the next six months. This is actually the first time I’ve heard of this.

I think the management is also protecting themselves against any lawsuits of senior management staff in the event that six months later they would release their staff without notice and with immediate effect.

Another one:

R&D departments are usually cost-centre’s ie; those employee’s will be at risk of retrenchment first. So here is what another company did.

They my candidate her one-month salary per-every year she has been in the organization and because of company policy that she had to serve a 3 month resignation period, they remunerated her with 3 months salary as they were letting her go in a month.

So all in all, she had gotten 6 months of her pay: 3 months for serving with the company for 3 years and 3 months to serve the resignation period.

So all in all this was a win-win situation too, but unless is unable to find a job in the nest 6 months. But looking at her technical capabilities, I am sure she will find a job in no time.

By the looks of it, i think companies will try to help their staff as much as they can, such as offering alternatives as above. At the end of the day, companies would not want to be swarmend with unwanted lawsuit issues as it comes with a price. Well, even if u raise up and issue with the union today, your case will probably on be heard a year later, unfortunately.

Please feel free do share if you have any retrenchement stories or issues. You can either email me or leave a comment.


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