Who is responsible for laying off employees?

Retrenchment is the process of releasing employees from employment. Recently, a lot of employees have been laid off by many employers. We think this is a very serious situation in the professional field. In this blog we will try to find out the reasons for layoffs.

Reasons of employees layoffs

The employer has the right to remove the employees from their jobs. Some of the reasons for layoffs are listed below.

• War between countries
• Epidemic
• Employee Behavior and Attitude
• Hired more employees than necessary
• Financial Crisis
• Corruption

Reason 1: War between countries

The supply chain can get disturbed due to war. In such cases employers are laying off their employees due to lack of demand for the products.

Solution

The employer must remain calm during this period. This situation will not last forever. Instead of laying off employees, the employer should ask the higher officials of the company to cut expenses.

Reason 2: Epidemic

Recently the whole world has faced very difficult time in Covid 19. Due to which many employers have fired their employees.

Solution

Employers should know that no pandemic will last more than four years. They should help their employees in such situations instead of saying goodbye to them. If employers trust their employee during pandemic, it will create new bond between employee and employer as these are difficult situations for both the parties.

Reason 3: Employee Behavior and Attitude

This is the only reason from the employee side that can lead to retrenchment. Sometimes workers unionize for the wrong reasons and lose their jobs.

Solution

Employees should never forget that their life is going on happily because of the job. Work should be the first priority for any employee. If any other employee is provoking you for any wrong reason, then you should not take his side. This type of retrenchment can be avoided if such precautions are taken by the employee.

Reason 4: Hired more employees than necessary

This is the latest trend among companies that hire more employees than required. We do not know the reason behind this. But this factor is also largely responsible for retrenchment of employees.

Solution

The employer should appoint the employees according to their requirement. They should not show off for the reputation of the company.

Reason 5: Financial Crisis

As per our point of view, financial crisis is a situation arising due to systemic failure, excessive risk taking, absence of regulatory policies etc. Lower level employees are not responsible for such situations.

Solution

Employers should take responsibility for such incidents. They should believe in organic growth instead of inorganic growth. So in such a situation retrenchment of employees can be avoided.

Reason 6: Corruption

Corruption decreases with the increase of technology but misuse of technology can increase corruption. Therefore employers should try to avoid such scenarios from arising.

Solution

Employers should make strict rules and policies against corruption. Large enterprises can form task forces to avoid corruption.

Conclusion

As per our view, there is a lot of potential for layoffs for large enterprises. But large enterprises should try to avoid this. If in that case it cannot be avoided then they should try to reduce it as much as possible. The employer should pay attention to the economic status of the employee as some employees are completely dependent on that job. Check job vacancies in Shriji Solutions.