Involuntary Termination has an impact on Human Resource management

 Involuntary Termination has an impact on Human Resource management



Introduction

Except for the retirement of a happy employee after a long career, removing an individual from a company is always a sad event, it may bring about emotional remembrances of early worries about abandonment. It has the potential to be a dangerous flashpoint for pent-up rage and hatred. It may be a time for sad reflection and increased self-doubt, Nonetheless, it is frequently the best thing to do for both the firm and the departing employee. Human Resources business partners play a crucial role in counseling company executives on when separation is the best option and, equally important, how to accomplish it appropriately (Friedman, 2011).


Main Reason for involuntary termination 

          Performance-related issues
Misconduct
Dishonesty and breaching business standards
Redundancy or restructuring
Inability to perform essential job functions.
End of a contract or project

(Business Owner's Playbook, 2023).



According to Vreede (2023), two most common forms of involuntary termination are dismissal and redundancy.

Dismissal: is the termination of employment due to an employee's conduct or performance, such as repeated policy violations or poor job performance. Employers must provide a valid reason and follow government regulations and employee contracts.


Redundancy: is employment termination due to company operations or restructuring changes, such as downsizing, relocation, or job automation. Employers must provide a valid reason, terminate the employee, and provide a final paycheck.

Impact on HRM

Involuntary termination may have a wide-ranging influence on human resource management, influencing many facets of an organization's operation, including costs, efficiency, productivity, and customer service. In these cases, effective HR management entails careful planning, clear communication, and proactive attempts to limit negative outcomes for both employees and the company as a whole (Victorian Public Sector Commission, 2022).

Employment Law in Sri Lanka

Under Sri Lanka’s labor laws, disputes regarding dismissals can be referred to alternative dispute resolution, including mediation, conciliation or arbitration. These cases can also be sent to a labor tribunal that can order reinstatement and back payment of wages, or provide severance pay in an amount the tribunal deems equitable (Horizons, 2023).

 

Conclusion

Involuntary termination is a critical and complicated problem that affects both individuals and businesses. It can have serious emotional and professional effects for employees, creating stress and disorientation. Employers must follow applicable labor regulations and treat employees with dignity throughout this process. Before resorting to termination, examine the organizational effects, such as team morale and productivity. In such instances, proper documentation and open communication are critical. Terminated workers should be given assistance and services to help them transition. Overall, creating an open communication, justice, and empathy culture can help lessen the need for involuntary terminations and promote a healthier work environment for everyone.

References

Business Owner's Playbook, 2023. The Hartford. [Online]
Available at: https://www.thehartford.com/business-insurance/strategy/employee-termination/valid-reasons#:~:text=Incompetence%2C%20including%20lack%20of%20productivity,behavior%20including%20revealing%20trade%20secrets
 [Accessed 26 07 2023].

Friedman, A. J., 2011. TLNT. [Online]
Available at: https://www.tlnt.com/articles/rightful-termination-important-part-of-an-organizations-talent-lifecycle
 [Accessed 26 07 2023].

Horizons, 2023. Horizons. [Online]
Available at: https://nhglobalpartners.com/countries/sri-lanka/peo-sri-lanka-employment-solutions/
 [Accessed 26 07 2023].

Vreede, C., 2023. Shiftbase. [Online]
Available at: https://www.shiftbase.com/glossary/termination-of-employment
 [Accessed 26 07 2023].

Victorian Public Sector Commission, 2022. Victorian Public Sector Commission. [Online]
Available at: https://vpsc.vic.gov.au/workforce-capability-leadership-and-management/workforce-capability/people-metrics-dictionary/12-involuntary-termination-rate/
[Accessed 19 08 2023].

 

Comments

  1. Rampragash MBA 2023July 28, 2023 at 3:47 AM

    Involuntary termination of employment may occur at the end of the employment life cycle, but it also has implications for recruiting, retention, employee ...

    I appreciate you sharing your knowledge because it's crucial for businesses.

    ReplyDelete
  2. I U K YaddehigeJuly 30, 2023 at 10:51 PM

    Involuntary Termination of happy employee after a long career, his economy and many other lifestyles are severely affected. It is an important article that discusses how to prepare for such a situation by reducing the pressure through human resource management,

    ReplyDelete
  3. Nimantha WickremasingheJuly 31, 2023 at 8:17 AM

    You are giving a good overview of involuntary termination, which is well written, but I'm afraid that you are not providing the impact of it in HRM as the title suggest. Hope you can elaborate more on the HRM impact so we can understand the implications better. Thanks.

    ReplyDelete
  4. Dinesh Chamira WijesinghaAugust 15, 2023 at 11:45 AM

    Not only does a termination diminishes the financial security that a person has but the impact it can have on their future employment can be significant as employers are often wary of potential employees who have been fired from previous jobs.

    ReplyDelete
  5. Dimuthu Edirisinghe - MBA28August 19, 2023 at 3:41 AM

    Removing an employee from a company can be a sad event, but it is often the best option for both the firm and the departing employee. Involuntary termination can be due to performance-related issues, misconduct, dishonesty, redundancy, or restructuring changes.

    ReplyDelete

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