The term ‘quiet firing’ has recently landed in the UK from the US and caught the imagination of the media. But in reality, it’s just a different label for something which shamefully isn’t new in UK workplaces.
Quiet firing or nudging an employee to resign may seem an easy solution for ‘problem’ staff (e.g. those with high absence rates or regular under-performers), rather than following formal procedures, but rightfully this can lead to some very negative consequences.
Ways companies might try to force people to resign include:
- Overloading them with tasks.
- Setting unrealistic deadlines or otherwise setting them up to fail.
- Excluding them from communications.
- Side lining or ‘cold shouldering’ them.
- Re-allocating their work/responsibilities.
- Changing their reporting lines.
- Micro-managing them.
- Excluding them from prestigious clients/work/projects.
- Not including them in social activities.
In short, making working life so unpleasant for them that they don’t want to stay.
We’ve even heard of recruiters being actively encouraged to contact employees that are no longer wanted.
Why do businesses encourage staff to resign rather than dismiss them?
Companies think that when they initiate a dismissal, not only is there a risk of an unfair dismissal claim, but the individual may be entitled to enhanced payments, e.g. redundancy. Particularly for long-serving employees. This may be a significant cost and also, potentially, take up valuable management time.
However, when someone genuinely resigns of their own accord, usually to go to another job, the employer does not have the same risk or liability; the individual works their notice, is paid their salary and leaves.
What are the risks?
Not only is driving someone out of the business just wrong, but it can also be risky. The person could claim that their employer’s behaviour amounts to constructive dismissal [see Acas link] and/or discrimination. This could result in having to pay compensation, and also bad publicity for the business, which could negatively affect recruitment efforts in the future. It could also prevent the company from trying to rely post-termination contractual restrictions, e.g. non-compete, non-poach, etc..
So what should a business do?
In the long run, dismissing someone properly and lawfully is the best way to protect against claims, to maintain a positive workplace culture and avoid negative PR – and let’s not forget that it’s just the right thing to do.
A lawful dismissal should not take a long time or be overly onerous. It involves the following:
- Identifying the real reason for dismissal. Legitimate reasons for dismissal include misconduct, poor performance, capability (sickness) and redundancy. If staff are in a share option or other incentive schemes, the reason for the dismissal will be important for deciding what, if any, their entitlements are.
- Following the correct procedure for the dismissal.
- Documenting communications and meetings with the individual as part of that process.
- Investigating the matter thoroughly and giving the individual a chance to respond before making any formal decision on dismissal.
- If the reason for the potential dismissal is poor performance, informing the individual what improvements are required and giving them sufficient time to do so, with additional training and support, if necessary.
- Acting fairly and consistently throughout – disciplinary sanctions for similar situations should be consistent.
- Once the decision to dismiss has been taken, making sure you give the individual notice correctly and/or pay them in lieu of notice.
How can we help?
We can advise on dismissals and redundancies, we can also provide policies and deliver training to managers and other staff on managing disciplinary and capability processes. Check out our HR Legal Counsel service for more information or get in touch: info@legaledge.co.uk
You may also find our blog on lay off lessons useful.
