Company is making my position redundant due to cost cutting but asking me to send email for resignation

Question

I was communicated over call with HR and senior manager that due to low business activity some positions are going to be made redundant and I am one of them. They communicated this over call and there was no email as such and they told they want me to send the resignation email. They also told that I would be receiving my 2 months salary plus gratuity etc. But nothing is communicated over email so far. They asked me to put my last working day as Dec 10 which is only 1 and 1/2 month.

When I checked with HR they told once I send resignation email they will send the next steps. I don't know what to do next.

Funny thing is they have hired recently for similar positions which are not impacted in this layoff.

Answer 1

A decent company would either give you notice and pay everything they are legally required to pay, or they will write a contract that says you resign and that specifies exactly what they will do for you to compensate you for resigning.

If they say "send a resignation email and then we take further steps" then they 100% want to cheat you. Once you sent that resignation email you lost any rights that you might have. It's the best thing you could for the company and the worst thing possible for yourself.

Answer 2

There's a reason that HR is avoiding putting anything in writing. If they're hiring at the same time they're making positions redundant, one possible reason could be that they're eliminating positions in your salary bracket and replacing them with people who cost less and are performing the same work -- which is illegal in certain cases. This aligns with the cost-cutting measures you've mentioned.

If you resign and later find out that what I've described is indeed the case, you probably wouldn't have any recourse because you resigned. On the other hand, if the company terminated you and replaced you with cheaper employees doing the same work, they could end up in trouble. I'm not an attorney and I don't know anything at all about labor laws in India, but this article suggests that I might be on to something about illegal dismissals.

Your situation is really fishy. I'd recommend that you talk to an attorney in your area before you sign any papers or resign. If you have any communications between you and HR, keep screen shots of any Teams conversations, and forward any emails to a personal account so that you retain proof of what has transpired.

Just remember that HR is not your friend here. HR is there to maintain business continuity, even if it means throwing you under the bus.

Best of luck.

Answer 3

Don't do it.

There is no benefit to you, and only risk. If you are laid off you get a severance package, unemployment benefits, they cannot hire someone else at a lower pay to replace you...

If you resign you get nothing. If you are lucky it sounds like you get 1.5 months more of work.

There is 1 reason, and 1 reason alone why they want you to resign instead of being laid off.. And that is because they are planning on screwing you. Tell the HR person that you would prefer to be laid off instead of resigning.. Also record the conversation (if you live in a location where you only need one person in the room to know that it is being recorded).

Answer 4

Did they give you a reason why they are not just terminating you instead of you resigning? After all they want you gone, looks like they get an advantage if you quit yourself.

For me this whole thing looks fishy. In some locations you lose benefits like unemployment pay when quiting yourself instead of being let go by the company.

So be careful what you do and maybe consult with an employment lawyer.

I was in a similar situation, I just waited it out and eventually got let go 2 months later. When they want you gone they will fire you anyway and you "only" maybe lose out on a good reference but even that is questionable and is up to you if you want to take that risk.

Answer 5

While all the answers suggest making them send an email, you could also stall them. You already know they are going to fire you, you already know they are being fishy about it, so there is no benefit in playing nice.

So if someone ask about that email, you could say something like "ah yes, of course I will get to it." and just don't.

Collect some more months of salary while looking for your next job.

Answer 6

There's very little you lose in waiting for them to put something in writing and a ton you can lose if you act first. I would let them send you an email in writing.

If I were in your position, I would even ask them to send you an email and state the reason you want this is so that the agreement which was made over the phone is placed into writing. They most likely are being sneaky, but by asking you can confirm whether this is true or not.

Answer 7

Let’s assume that the company want you to continue working until Dec 10th.

My concern would be that, if you resign you will work until Dec 10th, and then your employment will cease. You will most likely be entitled to cash out any vacation, but that's it.

On the flipside, if the company waits until Dec 10th to lay you off, there may be additional compensation for the layoff in addition to your wages and accrued vacation.

There are obviously variants of this. For example, if you resign, they might pay you until the end of the month, but the whole resign first and then we will give you the details later doesn't seem right. If the company wants to "do right by their employees", why wouldn't they just notify everyone what they plan to do...?

Answer 8

I would respond to that with an email where I summarize the phone conversation we just had, and then explain that i am not intending to resign, and that if they want me gone they should terminate me in the regular way. And should the termination conditions according to our work contract and applicable labor laws not be desirable for them, then I am open for negotiations regarding a severance agreement.

I would then do my research for what kind of severance agreement I should expect according to my particular situation in my particular jurisdiction. So that when their first offer arrives, I can estimate by how much they are trying to shortchange me, and make an appropriate counter-offer.

And of course go job hunting. Because when a company tried to fire you once, then you shouldn't remain there even if you can somehow cling to your work contract. It's not going to be much fun from then on.