Six types of ‘disguised layoffs’
Poor performance
A tell-tale sign of firms slashing staff is when workers are suddenly given poor performance ratings on the back of consistently good ratings.
Axed just before company moves abroad
Workers have their contracts terminated without clear explanation, but learn later that their firms have moved abroad.
Terminated at one month’s notice
Workers are terminated at a month’s notice — generally permissible under provisions in employment contracts — by firms cutting headcount. These workers do not get retrenchment benefits.
Golden handshakes
Workers are axed by firms and given a one-off or ex-gratia payment, some of which are below industry norms.
Contract workers terminated due to lost business contracts
Contract workers have their contracts discontinued after their firms failed to retain business deals or have to shed staff on account of a slowdown. While legally permissible, this could be considered a layoff.
Voluntary resignation
Workers are asked to resign voluntarily when firms are dogged by economic difficulties. The companies claim that terminating them “doesn’t look good on you”.
