The best policies and procedures of termination and separation ensures legal and just termination of employees. They work in the areas of termination and communication of the same in the following ways:
The employer should only terminate employees after giving them opportunities to improve(Ndibe & Campus, 2014).. The employee in question should have committed a very serious fault like prolonged poor performance, disciplinary or criminal issues which deserve termination (E, R & J., 2014).
One of the best practices of termination is that the employer should communicate the termination in writing. If the situation demands, the employer should communicate the message over the telephone, letter and even mobile messages (Koelmeyer, 2017)
The separation or termination is a complicated legal procedures and should be complied with in a streamlined process. The Fair Work Act ensures that the termination is done on legal grounds and protects the employees from unfair dismissal (Capuano, 2016).The key components of a separation process are as follows:
The employer should mention the termination clauses in the employment contract and clearly state the notice period. The employer should inform the employee about the organisational culture, workplace issues, attendance and so on. Both the parties to the contract should be clear about the actions which can lead to termination of employment (gov.ai, 2017).
The Fair Work Act says that the employers should follow the best practices of termination and inform the employee about it. They should aware about the laws and legislations regarding the employees and give them legal protection. For example, according to the Occupational Safety and Health Act, 1970, the construction companies need to provide a training to employees and cannot terminate them if they report violation of the same (Hardison et al., 2.14).
The employee must serve a minimum period as mentioned in the contract of employment. The example, a confirmed employee has to serve three months of notice period while an employee on probation has to serve a month of notice period.
The employers must inform the terminated employees about their decision in writing as per the best practices. They should intimate the employee in question about the termination by issuing a letter under the Fair Work Act. The act also requires the employers to inform about the date of termination and detailed explanations of the compensation which the employee is entitled to receive (Capuano, 2016).
The employer of the HR department should notify the insurance companies if the employee was a part of any group insurance plans. The employer must also inform the other people like the colleagues and managers who are likely to get affected by the termination.
A competent person like the HR head or the reporting manager must prepare a list of assets like keys and files with the employee. The employee must return all the assets with him before the separation.
The human resource manager shares the responsibility along with the line manager in the event of termination of an employee. The roles of the two personnel are explained as under:
The human resource manager investigates into the legality of termination of an employee in accordance to laws. The HR manager informs the line manager whether the termination is legal before the process of termination is initiated.
The human resource manager along with the supervisor or manager should explain the employee the reason for his termination. If actions like sexual harassments, gross misconduct or any other serious acts are the causes of termination, the HR department should explain the employee on the same (Taniguchi et al., 2016).
The HR department should explain to the terminated employee about the compensation he is entitled to get after termination. The HR should may arrangements to make payments to the employee as per company norms.
The three warning principal are the three cautions which employers issue their employees intimating them about their performances. The warnings should be issues in writing and the employee should be given chances to improve his performance or present his justification for under performance. The employer should be able to show the warning in order to avoid charges of illegal dismissal (Stair, 2013).
The termination should be kept confidential and private between the parties in order to main secrecy of the act of termination. Maintaining confidentiality also prevents the termination of one employee affecting the motivation of other employees. This also prevents the present employees from deriving undue advantage from the termination of the employee in question.
The HR manages the development and executing the termination procedures in the following ways:
Intimates the employee- The HR intimates the employee regarding the grounds of his termination. He also informs him about the termination policies of the company like notice periods, handing back of assets in possession of the employee
Compensation- The HR informs the employee about the compensation he is entitled to receive post separation. It is the HR department which processes this compensation to the employee according to the company policies.
Final formalities- The HR conduct the final exit formalities for the terminated employee. The HR provides the employee with the release letter, experience letter and the pay cheque, if the terms of employment states so.
The outlines of HR role in redundancy or deployment are as follows
Redeploy the employee- The HR department should at first try to redeploy an employee based on the job requirements and the competencies of the employee. If the HR department is unable to provide the employee with suitable job opportunity, the employee is rendered redundant.
Redundancy pay or severance pay- The HR department on behalf of the employer has to pay the severance pay to the redundant employee(Policy, 2015). However, the employer may apply to the Fair Work Commission to exempt him from paying severance pay if he is able to find an acceptable job for the employee or if he is unable to bear the cost of redundant pay (fairwork.gov.au, 2017).
The HR provides outplacement services to the laid off employees and help them to search jobs and get new jobs. The companies may charge for the outplacement services they pay to the redundant employees. The HR may also provide other assistance services like job counselling, coach and training of these employees.
The HR has the following role in dealing with dismissal:
Documenting dismissal- The HR may dismiss an employee if he fails to show improvement or commits actions of moral turpitude. The HR maintains all documents regarding all dismissals so as to ensure that those dismissals were legal and objective.
Coordination- They manage the process of dismissal and ensure that it was done in accordance the law of the land.
Guide a retiring employee- The HR should help am employee with the retirement policies and the compensation he is entitled to. The HR should also ensure that the retirement complies with the laws like Employee Retirement Income Security Act.
Transferring job roles- The HR should transfer the job roles of the outgoing person among the existing work force. They should also consider providing training or new recruitment to continue the operations smoothly.
An exit interview is an interview given a resigning or retiring employee by the HR or the employer. The aim of the interview is to find out why a person is resigning from the organisation. This helps the company to work on the reasons to improve the situation which makes employees resign. This directs the company to take decisions which ultimately reduce employee turnover.
Advantages:
The exit interview needs minimum time and resource engagement. They help the HR and the management to know about the strength and weakness of the organisation culture.
The management comes to know about the deficiencies in the organisation and its operations. The management can use the information gained from the exit interview to bring about changes in policies. This helps the company to increase employee retention and reduce turnovers.
Disadvantages:
The outgoing employees fear revealing their true opinion to avoid an adverse action form the company.
The process of exit interview does not have any fruitful result due to lack of confidence of an outgoing employee in the HR and management. They iften only result in wastage of time without any fruitful outcome.
The companies should involve the following people in the process of the exit interview. This will increase the transparency in the exit interviews and help the companies to retain their employees.
This will prevent any one of these people from enforcing undue power upon the outgoing employee. The employee will be able express his opinions before a larger group of people. This will make more people to be aware about the present working conditions about the company and they will be able to work towards changing the organisational culture of the company. It will also prevent any one group from distorting and manipulating the true facts.
The information from the exit interview can be used to bring about changes in the organisation culture and increase employee retention (“State Human Resources”, 2017).
Conclusion:
The study above shows that separation of employee with employer is ruled by several laws. The HR department guides the management to carry out these functions in accordance with the law and advantage to the company. The HR also helps the outgoing employees by giving them compensation and even helping them to find new jobs. The last section throws light on the significance of the exit interviews. The HR department and the management iwth coorperation from the employees change bring about positive changes based on the information gained from exit interview.
References:
Burris, E. R., Detert, J. R., & Romney, A. C. (2013). Speaking up vs. being heard: The disagreement around and outcomes of employee voice. Organization Science, 24(1), 22-38.
Capuano, A. (2016). Giving Meaning to’Social Origin’in International Labour Organization (‘ILO’) Conventions, the Fair Work Act 2009 (Cth) and the Australian Human Rights Commission Act 1986 (Cth):’Class’ Discrimination and its Relevance to the Australian Context.
Worden, R., Harris, C., & J. McLean, S. (2014). Risk assessment and risk management in policing.Policing: An International Journal of Police Strategies & Management,37(2), 239-258.
Employee Seperation Policy. (2017). gov.ai. Retrieved 5 April 2017, from https://www.gov.ai/documents/publicadmin/Employee%20Separation%20Policy.pdf
Fair Work Ombudsman website. (2017). fairwork.gov.au. Retrieved 5 April 2017, from https://www.fairwork.gov.au/ending-employment/redundancy/redundancy-pay-and-entitlements
Hardison, D., Behm, M., Hallowell, M. R., & Fonooni, H. (2014). Identifying construction supervisor competencies for effective site safety. Safety science, 65, 45-53.
Koelmeyer, A. (2017). Best practice guide to termination. hcamag.com. Retrieved 5 April 2017, from https://www.hcamag.com/hr-news/best-practice-guide-to-termination-190639.aspx
Ndibe, b. C., & Campus, e. (2014). Effect of employees training on organizational performance in soft drinks bottling companies in enugu state, nigeria.
Policy, I. (2015). Procedure. Disclosure of Outcomes to Patients.
Stair, B. (2013). Mental States and Misconduct: The Supreme Court of Missouri Interprets an Important Disqualification from Unemployment Benefits. Mo. L. Rev., 78, 953.
State Human Resources. (2017). hr.ofm.wa.gov/. Retrieved 5 April 2017, from https://hr.ofm.wa.gov/sites/default/files/documents/…/ExitInterviewTemplate.doc
Taniguchi, T., Takaki, J., Hirokawa, K., Fujii, Y., & Harano, K. (2016). Associations of workplace bullying and harassment with stress reactions: a two-year follow-up study. Industrial health, 54(2), 131-138.
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