The Differences Between Fair And Unfair Dismissals
TOC o “1-3” h z u The Importance of Exit Interview to Both Parties PAGEREF _Toc380779052 h 2The Key Stages in Managing Redundancies PAGEREF _Toc380779053 h 3
Fair dismissal of employees at Eagle Technologies involves substantial fairness and due procedure. Substantive fairness in this regard refers to contracts that have been terminated with fair reasons. The fair reasons include misconduct, lack of capability, legal barrier and redundancy (Martin, 2004). Some employees have been dismissed with substantive fairness for misconduct, referring to those who commit something wrong and there is prove that they are responsible. It also encompasses employees dismissed for incapacity referring to failure to conduct duty to the desired expertise. Yet others are dismissed because for prolonged leaves dues to illness (Kimpton & Hatauf-Coles, 2008). Examples of procedurally dismissal includes when employees are dismissed and the right process is followed before terminating a contract. In such case Eagle Technologies ensures that leaving employees have fair hearing to give their part of the evidence. Therefore, in a fair dismissal an employer has a fair reason to terminate a contract and follows the right procedure (“Chapter 6 – Labor Law”, n.d).
Eagle technology has also dismissed employees unfairly on a number of occasions by not having fair reasons, or violating some of the set criteria. Unfair dismissal does not take place because of employees’ lack of competence, capability or qualification. It is not due to employee’s conduct or the fact that continuation of the contract is in contravention of a statutory requirement. In other words it is not justified by substantial reasons. Some of the employees who have separated with Eagle Technologies have been dismissed because of their membership and stance in trade unions. The company has an internal policy that does not permit members to be actively engaged in trade unions activities. In the last two years the company has also dismissed some women for getting married to the same sex. It has also dismissed men from minority groups like Hispanics. This amounts to unfair dismissal on the grounds of sexual orientation and race (UnionConnect, n.d). Additionally, one employee was recently dismissed unfairly for testifying against the firm in a lawsuit involving it and a former employee.
The Importance of Exit Interview to Both PartiesAn exit interview is conducted when an employee is leaving an organization due to voluntary resignations, dismissal or retirements. It should always be conducted regardless of the reason. There are a number of potential benefits that Eagle Technologies can generate by conducting an exit interview. This is primarily, to reduce the higher costs observed in the last two years in litigations or to lower the incredibly higher turnover rates especially for female workers. These benefits goes two ways as leaving employee can also benefit by averting possible lawsuit by Eagle Technologies for violating some clauses in the contract.
According to Silvberman (2001) it is important to conduct an exit interview when an employee with management or technical responsibilities leaves an organization to avert possible legal conflict. He argues that it’s particularly important when trade secrets or intellectual properties are involved and departing employee plans to work for a competitor. It is also important where part of the contract is a covenant that an employee would not compete with the employer organization in the future. In regard to trade secrets he explains that an employee is under obligation to keep them secret and to only use them while under employment. He also explains that the agreement not to compete bounds an employee not to indulge in competition with an employer within a geographic and can also prohibit them from soliciting employees from the organization. The exit interview provides room to address many such issue that Eagle technologies has observed for the last two years.
Eagle technologies can also benefit by conducting an exit interview by acquiring vital information to assist in improving employee recruitment and retention. This can be an opportunity to understand the main reason for leaving and use this information to save key employees (Belancik, 2011). The departing employee can speak freely and disclose information that otherwise would not be possible. The company can also get valuable feedback on its compensation and benefits program. In the last two years Eagle technologies, has doubled its salaries to reduce the higher turnover rates observed. However, this has not worked for the firm. Exit interview provides a god alternative to learn what else employees’ values and they would like to see some change (Buhler, 2011).
The Key Stages in Managing RedundanciesPoorly managed redundancy programs are precipitates for lawsuits for discrimination and unfair dismissal. Redundancy is an important approach to save a business from dissolution in difficult economic times. Eagle Technologies is currently undergoing its worst performance in terms of profitability and is in dire need to cut down operational costs. Redundancy is thus the only way to go, but should follow the following steps to avert the negative consequences.
The first step the company should follow is to prepare. It involves assessing the necessity for redundancy or building evidence that the firm is performing poorly and is in dire need for redundancy. This is followed by Selection process where affected people are identified. The criteria used ought to be fair and devoid of discrimination. The next step is individual consultation where each employee selected is debriefed and given alternative employment within the firm where possible. Then give employee written notices for dismissal and give room for appeal. Lastly, it is the termination process where employees are paid their statutory payments for redundancy (TurnstoneHR, 2011).
Belancik, G. (2011). Before You Go. Smart Business Atlanta, 8(12), p 26.
Buhler, P. M. (2011). The Exit Interview: a Goldmine of Information. Supervision, 72(8), pp 11-13.
Chapter 6 – Labor Law. (n.d). Retrieved on June 30, 2013 from: file:///D:/2013/Unfair%20Dismissal/15.html
Kimpton, C., & Hatlauf-Coles, C. (2008). You’Re Fired. New Zealand Management, 55(4), pp 50-53.
Martin, D. M. (2004). Dismissal. A to Z of Employment Practice, pp 167-176.
Silverman, A. B. (2001). Employee Exit Interviews – An Important But Frequently Overlooked Procedure. JOM, 53(11), p 48.
TurnstoneHR, (2011). Manage The Redudancy Process Effectively. Retrieved on June 30, 2013 from: http://www.turnstonehr.com/managing-redundancy-process/