In some countries and regions, companies are legally restricted from firing employees. These laws may include labor laws, anti-discrimination laws, minimum wages, and so on. These laws may restrict the conditions and ways in which companies can fire employees, and require companies to give employees specific notice periods, pay compensation, and so on. Companies that fail to comply with these laws may face legal action or fines.
Employees have their own rights in the employment relationship, such as the right to work, the right to be paid, the right to rest and a safe working environment, etc. If the company has no legal basis to dismiss the employee, it may violate the employee's rights and lead to labor arbitration or legal proceedings.
Some companies may have strict hiring and firing policies that require multiple levels of approval and review. These policies may be designed to ensure that companies can handle employee departures fairly and transparently to avoid possible legal risks and reputational damage.
Firing an employee may cause interpersonal tensions and conflicts within the company. Laid-off employees may feel angry, disappointed, or depressed, while those who remain may feel upset or stressed. This can affect company morale and productivity.
Common elements negotiated during dismissal discussions include:
Severance pay or packages
Notice periods or pay in lieu of notice
Continuation of benefits (healthcare, pension, etc.)
Return of company property
Reference letters or recommendations