How to handle termination at workplace?

It could be the company’s decision to terminate a person, but everyone would shun when they are aware that they might have to communicate this termination to the affected employee. There will be fears of how the affected employee would take it once they are confronted with the decision, and it might seem as a very distasteful way to execute this decision. 

THE THOUGHT PROCESS

It is important to ensure the company have sufficiently thought through this process before handling the termination letter. A good company policy would be sufficient to handle any reasons why a supervisor might be reluctant to hand the termination letter. These reasons can then be used to justify to the affected employee on their reasons for termination.

Before termination is decided, employees should have been aware of the reasons of their performance issues and have given opportunities to improve. It is only justifiable if they have been aware of their issues and proper remediation steps have been advised and executed.

Fundamentally, the affected employee is affecting the team synergy and his outcome of his work is dis-satisfactory to the team’s work performance. This is the exact case of “It’s better to have no one at all, than to have the affected employee on board”. If the affected employee performance is not up to par, it is also to justify to his co-workers and then the entire misconception of the person executing the termination is cruel and inconsiderate would also be misplaced. People prefer to work for managers who enforce exacting standards and who give continuous feedback on their work.

It is also important to understand to consider this affected employee a re-designation before termination. The affected employee could be kept due to good attitude and willing to learn but a non-performance in the role that was assigned

HANDLE THE PERSON EXECUTING IT

The person handling the termination should be trained and be advised prior to executing the termination to the affected employee. The person executing the termination should never retaliate to anger or violence during the termination process as both parties could have been displeased with each other for a period.

It is important also to let managers listen to their perspective of the affected employee before finalizing the discussion by saying the discussion is over, but the decision still stands. It would not be very professional for an employee to have been kept interrupted with “Our decision still stands”.

During the execution of termination, it would be a fatal mistake to go through the empathetic stand and shower compliments to a candidate when the decision has been made for him to be terminated. You might also confuse your employee on the decision and might result in the employee challenging the manager on why the decision was made.

Emphasis on Getting Employment Terms and Payslips Documented!

Get the year started with everything in place, especially matters related to Human Resources which are things that can and may be easily neglected. Have you come across arguments and disagreement rising because it was not written on papers, and you have your employees coming to you with another set of information? It is, then again, words against words – which we commonly said there is no “black and white”.

Avoid such arguments and disagreement as this will create an unhappiness environment and distrusting employees. Never get yourself caught in between legality issues and later having to pay a higher price.

So, what exactly is needed in an employment contract so that it not only safe guard the employees but yourself as employers too?

1.    Name of employer
2.    Name of employee
3.    Job title and main duties and responsibilities
4.    Date of commencing employment
5.    Duration of employment (Only for employees on fixed-term contract)
6.    Daily working hours, number of working days per week and rest day(s)
7.    Salary period
8.    Basic salary per salary period
9.    Fixed allowances per salary period
10.    Fixed deductions per salary period
11.    Overtime payment period
12.    Overtime rate of pay
13.    Other salary-related components (e.g. bonuses, incentives)
14.    Statutory Leave entitlements (e.g. annual leave, outpatient sick leave)
15.    Other medical benefits (e.g. insurance, medical, dental benefits)
16.    Probation period
17.    Notice period for termination of employment initiated by either party

How about the details that are required in a payslip?
1.    Full name of employer.
2.    Full name of employee.
3.    Date of payment (or dates, if the pay slips consolidates multiple payments).
4.    Basic salary
       For hourly, daily or piece-rated workers, indicate all the following:
                  •    Basic rate of pay, e.g. $X per hour. 
                  •    Total number of hours or days worked or pieces produced
5.    Start and end date of salary period
6.    Allowances paid for salary period, such as:
                  •    All fixed allowances, e.g. transport.
                  •    All ad-hoc allowances, e.g. one-off uniform allowance.
7.    Any other additional payment for each salary period, such as: Bonuses, Rest day pay, Public holiday pay
8.    Deductions made for each salary period, such as: All fixed deductions (e.g. employee’s CPF contribution), All ad-hoc deductions (e.g. deductions for no-pay leave, absence from work).
9.    Overtime hours worked.
10.   Overtime pay
11.    Start and end date of overtime payment period (if different from item 5 start and end date of salary period).
12.    Net salary paid in total.

Start 2017 by getting the above 2 components correct!
You may also download a sample of the Payslip from MOM website: Click here
You may also download a sample of the Key Employment Terms from MOM website Click here

Changes from MOM (Key Employment Terms in Letter of Employment)

Employers will always want to make sure you are getting the right candidate for your role. You would want to ensure that your prospective employee expectations match with what you can provide, and that the prospective employee is signing up for the right job that he thinks it is.

To prevent confusion and conflicts, employers should provide Key Employment Terms (KET) in your letter of employment. This ensure that there is effective communication between the one preparing the letter, as well as the one signing on the employment letter. 

With effect from 01 April 2016, employers who do not have the key employment terms stated in the letter of employment will be subjected to an administrative penalty. The focus would be on educating employees in the first year. 

The things to include in the Key Employment Terms are:

• Full name of employer.
• Full name of employee
• Job title, main duties and responsibilities.
• Start date of employment.
• Duration of employment (if employee is on fixed-term contract).
• Working arrangements, such as:
  o    Daily working hours (e.g. 8.30am - 6pm).
  o    Number of working days per week (e.g. six).
  o    Rest day (e.g. Saturday).
• Salary period.
• Basic salary.
  o    For hourly, daily or piece-rated workers, the basic rate of pay indicated 
• Fixed allowances.
• Fixed deductions.
• Overtime payment period (if different from item 7 salary period).
• Overtime rate of pay.
• Other salary-related components, such as:
  o    Bonuses
  o    Incentives
• Type of leave, such as:
  o    Annual leave
  o    Outpatient sick leave
  o    Hospitalisation leave
  o    Maternity leave
  o    Childcare leave
• Other medical benefits, such as:
  o    Insurance
  o    Medical benefits
  o    Dental benefits
• Probation period.
• Notice period.

With this in place, you can ensure that both parties have set the expectation right, and it will facilitate to resolve outstanding disagreements later, if necessary. 

Sample of KET copy can found on MOM page.

http://www.channelnewsasia.com/news/business/employers-must-issue/2652704.html
http://www.mom.gov.sg/employment-practices/employmen