HND in Business

Management
Module: Human Resource Management Unit
21
Lesson: Managing Exit
Lecturer:
Prepared By: Eranda
Bandara

Carful Management Of Exist

Procedures
The need of compliance with the
legal framework on employment
protection
( Dismissal &
redundancy)
The need for sensitivity to the human
issues involved
The need of gather feedback ,
specially form voluntarily departing
employees
Prepared By: Eranda
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Handling Resignation
Personal or occupational reasons are
behind the resignation .
Reasons will relate to organizational
culture , management style , HR policies .
Need to find the real reason of leaving
the organization.
Conduct an EXIT Interview
No legal requirement on give reasons for
leaving
Prepared By: Eranda
Bandara

Resignation Policies
Need to decide how long a person should
stay even after informing the termination .
This notice period should be mentioned in
the appointment letter/contract agreement
Need to consider the cost invested & future
bad outcomes of loosing this person .
Need to consider future threats when this
person join with competitors .

Prepared By: Eranda

Bandara

Activities Involve In
Resignation Of An Employee
1. Employee
officially
inform
his
resignation to the immediate boss.
2. Immediate boss & the HR department
communicate information
3. Immediate boss will have a discussion
with the employee to make the
employee stay with the organization .
4. If above is unsuccessful , arrange an
Exist interview.
Prepared By: Eranda
Bandara

Cont..
5) The period of notice required for the employee to
leave should be set out in the
contract of
employment . If there is a
practical difficulty in
accepting that , can go for negotiations.
6) Details of departure need to be communicated HR ,
Finance & Security officers. Employee will have to
complete appropriate paper work other procedures .
7) The Dep. Head need to prepare a complete form of
leaving report , issue a service letter to the employee
& finalize communications with external parties etc
Prepared By: Eranda
Bandara

Wrongful Dismissal
This is relevant to the employee common law
Wrongful dismissal is a contractual right
Employer terminates the employment contract opposing to
the terms contained in it .E.g. failing to give the correct
notice
1 month to 2 years of employment = 1 weeks notice
2 years to 12 years of employment = 1 week for each year
worked
12 years plus of employment = 12 weeks notice
Compensated only to the amount lost by the employee
Employee need to prove that , they were dismissed in
breach of contract & they suffered a lot .
Prepared By: Eranda
Bandara

Unfair Dismissal
Unfair dismissal is a legal right giving
employees with one years service the
right to complain to a Tribunal that
they have not been treated fairly or
reasonably by their employer.

Prepared By: Eranda

Bandara

Unfair Dismissal
Covered under the Employment Rights Act
Employee currently has the right not to be
unfairly dismissed with following conditions.
Under the normal retiring age applicable to
his/her job
Continuously employees more than 12
months ( Full or part time)
Lodge a claim with the tribunal office with in
3 months of the dismiss .
Prepared By: Eranda
Bandara

Dismissal Is Unfair
Selection for dismissal is unfair/ opposing to the
requirement of the employment rights act
Refusing to join with a trade union
Pregnancy , Maternity or on Parental leave
Unfair Transferring
Refusing to give up a right under the Working Time
Regulations - Refusal to work on Sundays
Seeking to apply rights under the National Minimum Wage
Act
Bringing proceedings against the employer for breaking
certain statutory employment rights.
Discriminations ( sexual , race , religious belief or disability)
Prepared By: Eranda
Bandara

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Dismissal Is Justified
Selection for dismissal is fair according to the
requirement of the employment rights act
Legal barriers Loss of a driving licence
Incapability

ill
health
,
Lack
of
qualifications.
Misconduct

Minimum
disciplinary
procedures followed
Other substantial reasons Employee
marries a competitor
Prepared By: Eranda
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Remedies For Unfair Dismissal

Reinstatement - getting their job back
with no loss of money or security.
Engagement - getting another job with
the same employer.
Compensation - a basic award calculated
in a similar way to a redundancy plus a
compensatory award to compensate the
employee for the financial losses incurred
as a result of the dismissal.
Prepared By: Eranda
Bandara

12

Dismissal Procedures
Standards of performances need to be set
& clearly communicated .
Warnings must be given for performance
gaps
Give the reasonable time for improvement
Apply disciplinary procedures according to
the legally acceptable methods.
Implement fair & transparent procedures
Evaluating all decisions
Prepared By: Eranda
Bandara

13

Employment Tribunals
(courts)
Independent judicial bodies which
arbitrate in employment matters
including unfair dismissal, employment
protection and claims in relation to
sexual/racial discrimination and equal
pay

Prepared By: Eranda

Bandara

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Employment Tribunal Act

1996

Employment Tribunal

A Legally Qualified
Employee Chairperson

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Bandara

An Employer
Representative

A Representative

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Power of Tribunals
Power to order the disclosure and
inspection of documents or demand
information relevant to the claim.
Set timescale for compliance with
information requests.
Make legally binding decisions and
orders

Prepared By: Eranda

Bandara

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Tribunal procedure
The case is started with presenting the application by the
employee
Application will be sent to both respondent in the case & the
Tribunal under registered post .
The case go through mediation/ negotiations
Do a preliminary hearing of the case . Consider the merits of
the case
Other party provides further or better particulars of any facts
relevant to the claim.
Do the full hearing of the case. Both parties represent
witnesses & documents.
All the witness are heard , read out & cross examined by the
other side as well as questioned by the tribunal.
If the employee is successful further discussed with
compensation or other forms of reliefs.
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Bandara

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Employee Rights And

Redundancy Procedures
Key aims :
To treat employees as fairly as
possible
To reduce hardship as much as
possible
To protect managements ability to
run the business effectively .

Prepared By: Eranda

Bandara

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Minimizing Involuntary
Redundancies

Advance HR planning
Adjusting HR plans
Encourage voluntary redundancy
Retraining
&
redevelopment
Programmes
Encourage early retirement

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Bandara

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Selection For Compulsory

Redundancy
LIFO
Point score method

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Bandara

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Redundancy Pay
For loss of security
To encourage them to accept
redundancy with out damage the
employee relationship

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Bandara

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Compassionate Exit
Management
Informing employees
interview
Counseling
Outplacement services
Information
on
job
employment

Prepared By: Eranda

Bandara

Release

&

self

22

Legal & Regulatory Framework

Redundancy
Employment Protection act 1975
In collective redundancies ( above 20 or more) employer should consult employee
representatives .
If no trade union , should make arrangements to elect representatives fro the affected
workforce.
Provide information about the redundancy
Consultation must begin immediately.
20-99 people minimum 30 days earlier
Above 100 minimum of 90 days earlier
Consultation must be genuine and should come to an agreement with
representatives .
Failure to comply with consultation requirements will be directed a complain to the
employee tribunal a

Prepared By: Eranda

Bandara

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