Human resources Q&A ... with Supachai Manusphaibhool

Even when someone is seriously wrong, we first give the person a chance to resign.

To our surprise, we are asked to give such people a termination letter. What is the rationale behind it and what should we do?

A: First of all, it is good to see you are a concerned employer. Everyone has a reason - good or bad - for their wrongdoing, but people should be given a chance somewhere else.

It is to the employer's benefit, too, when there is a properly written and signed resignation letter. 

But in the case of termination, there is always a chance that the former employee may, in the subsequent 10 years, sue you for compensation for damage on top of severance of payment, which may or may not have been paid. Naturally, it will be difficult to defend the case when the documents and people involved are not around.

Plaints that come up about unfair dismissal are based on discrimination or prejudice, termination of service without sufficient reason, or that which is based on the lack of concrete evidence.

Even when there are grounds for a dismissal in full compliance with the Labour Protection Act and relevant employment regulations, the employer will be found to be in the wrong if the employee's wrongdoings were not clearly spelt out.

However, the wrongdoers do not always intend to sue the company. They insist on a termination letter simply because:

1. They will qualify for unemployment benefits at half pay (capped at Bt15,000 a month) for 180 days, (as against 30 per cent of monthly pay for 90 days in case of a resignation).

2. They will get tax exemption on severance payment (in the rare case that a wrongdoer is given such money).

Employers should convince the employees to tender a resignation based on the fact that they would receive the employer's part of the Provident Fund, a good reference to find a new job within three months.

Dishonest staff, however, should be dismissed.