Redanber ♫ ♫ * FriendS of FrienD * ♫ ♫

7 Things Never to Say to Your Boss

2010-03-24T06:24:00.000-07:00

Everyone has a boss. Even if you "work for yourself," you're still an employee to your client.

A big part of maintaining the boss-employee relationship is to never allow a boss to think you dislike your work, are incapable of doing it, or--worse--consider it beneath you.

These sound like no-brainers, but many statements heard commonly around the workplace violate these basic rules. Looking for an example? Here are seven heard in workplaces all the time. They may seem ordinary, even harmless. But try reading these from your boss's point of view. You'll see right away why it's smart to never allow these seven sentences to pass your lips:

"That's not my job." You know what? A lot of bosses are simple souls who think your job is to do what's asked of you. So even if you're assigned a task that is, indeed, not your job, refrain from saying so. Instead, try to find out why your boss is assigning you this task--there may be a valid reason. If you believe that doing the task is a bad idea (as in, bad for the company) you can try explaining why and suggesting how it could be better done by someone else. This may work, depending on the boss. In any case, remember that doing what's asked of you, even tasks outside your job description, is good karma.

"It's not my problem." When people say something is not their problem it makes them look like they don't care. This does not endear them to anybody, especially the boss. If a problem is brewing and you have nothing constructive to say, it's better to say nothing at all. Even better is to pitch in and try to help. Because, ultimately, a problem in the workplace is everyone's problem. We're all in it together.

"It's not my fault." Yet another four words to be avoided. Human nature is weird. Claiming that something is not our fault often has the result of making people suspect it is. Besides, what's the real issue here? It's that something went wrong and needs to be fixed. That's what people should be thinking about--not who is to blame.

"I can only do one thing at a time." News flash: Complaining you are overworked will not make your boss feel sorry for you or go easier on you. Instead, a boss will think: (1) you resent your job, and/or (2) you aren't up to your job. Everybody, especially nowadays, feels pressured and overworked. If you're trying to be funny, please note that some sarcasm is funny and lightens the mood. Some just ticks people off.

"I am way overqualified for this job." Hey, maybe you are. But the fact is, this is the job you have. You agreed to take it on and, while you may now regret that decision, it's still your job. Complaining that it's beneath you only makes you look bad. Plus, coworkers doing similar jobs may resent and dislike you. And guess what? Bosses will not think, "Oh, this is a superior person whom I need to promote." Nope, they'll think, "What a jerk."

"This job is easy! Anyone could do it!" Maybe what you're trying to convey here is that you're so brilliant your work is easy. Unfortunately, it comes off sounding more like, "This work is stupid." Bosses don't like hearing that any work is stupid. Nor do they really like hearing that a job is easy peasy. It belittles the whole enterprise. If a task is simple, be glad and do it as quickly as you can. Even "stupid" work needs to get done.

"It can't be done." Saying something can't be done is like waving a red flag in a boss's eyes. Even if the thing being suggested truly is impossible, saying it is can make you look ineffectual or incapable. Better to play detective. Why is the boss asking you to do whatever it is? What's the problem that needs to be solved? What's the goal? Search for doable ways of solving that problem or reaching that goal. That's what bosses really want. Most of them do not expect the impossible.

Last words: When in doubt, remember that silence really is golden.

How to Ace the Phone Interview

2010-03-24T06:22:00.000-07:00

Many job interviews these days are conducted by phone. It’s faster and cheaper for both job hirers and hunters. HR folks especially like it because it allows them to screen more applicants in less time. A phone interview may even be your first contact with a potential employer.

Phone interviews are not, however, the same as in-person interviews. So much human communication is non-verbal! You may need to acquire a few new skills to pull off a great jobinterview over the phone. To get you started, check out these phone interview do’s and don’ts:

DO:

Smile while you speak. It may feel silly, but smiling shows up in your voice.
Stand up. It removes pressure from your diaphragm and gives your voice more resonance.
Choose a quiet room. No dogs barking, kids whining, music playing, lawnmowers mowing, or TV blaring in the background.
Tape your résumé and whatever notes you'll use (say, lists of your accomplishments and strengths) on the wall so you can consult them without having to look down, which can muffle your voice.
Have pen and paper handy, along with your calendar (maybe they’ll want to schedule a follow-up!)
Remember that your interviewer can’t see you. If you pause to make a note, don’t let the silence stretch out. You might say, for example, “Just one second, please, while I write that down.”
If a switchboard operator or an assistant connects you to the interviewer, be nice to that person. Word gets around.
Whether you use a land or cell line, test your phone connection with a friend. Choose a phone you can hold to your ear comfortably. If you use a headset or speaker phone, make sure you are not unconsciously shouting.
Do a practice interview with your friend. Ask if you say “um” a lot (which is even more annoying on a phone than in real life), or if you speak too slowly or quickly, or if your voice is too loud or too soft. Taping yourself is another good way to get an idea of how you come off.
Try setting up a mirror in your phone-interview room. Sounds crazy, but having a human face to talk to may help you to speak with more passion and conviction. Try it!
If you have time, just before the call, take a series of long deep breaths. Say a few practice phrases, slowly and in a slightly deeper register than your normal voice.
Be prepared. A prospective employer may call when you least expect it. Yes, you can ask to reschedule at a more convenient time but showing you are flexible and can think on your feet is not a bad way to impress people. Keep your phone-interview area set up and ready to go.
Close the interview by trying to set up an in-person meeting. It’s that old sales technique of “asking for the sale.”

[See the best way to quit your job.]

DON’T: (Most of these should go without saying but let’s say them anyway.)

Don’t eat, drink, chew gum, spit tobacco, smoke, sniffle, belch, or blow your nose. If you absolutely must sneeze, hold the phone as far away as possible, briefly apologize, and turn the conversation back to the interview. (Don’t say, “Whoa, what a honkin’ sneeze!”)
Don’t put your interviewer on hold to answer an incoming call.
Don’t talk to other people in the room. (Try to be alone when you’re interviewing.)
Don’t monopolize the conversation. This is also true for in-person interviews, but on the phone you lack visual cues to tell you when your listener is zoning out. Practice speaking in two-minute increments (use an egg timer, or the timer on your microwave).
Don’t interrupt. If you accidentally speak over your interviewer, quickly apologize and let him finish.
Don’t fail to realize that a phone interview is as formal as an in-person interview. A phone call may feel casual but—beware!—you are being judged and you need to sound professional. If it helps, try “dressing up” for your phone interview.

Good luck. Your next phone interview may be The One. Oh, and don’t forget to follow up with a thank-you note, just as you would after an in-person meeting.

How to Answer 10 Tricky Interview Questions

2010-03-24T06:21:00.000-07:00

Does it seem as though some job interview questions are designed to trip you up?

It should, because they are. Here are 10 of the trickiest tricky questions you might be asked at a job interview, with ideas on how to handle them:

1. “Tell me about yourself.”

DO: Talk about the ways that what you know and what you can do are perfectly suited to this job.
DON’T: Tell the interviewer your life story.

2. “Tell me something bad you’ve heard about our company.”

DO: You wouldn’t apply for a job at a company you disapproved of, would you? So you should be able to honestly answer that you haven’t heard anything negative about this place.
DON’T: Repeat gossip you might have heard.

3. “Why should I hire you?”

DO: Impress your interviewer with how much you know about the company’s requirements and then describe how you are the best person to meet those requirements.
DON’T: Get tripped up by a lack of prior research.

4. “Where do you see yourself in five years?”

DO: Talk about how your specific abilities, training, and experience will enable you to smoothly integrate with this company.
DON’T: Say that you have no idea.

5. “How would you react if I told you your interview so far was terrible?”

DO: Recognize that this is a test to see if you get flustered. Say, mildly, that you would ask for reasons why.
DON’T: Freak out. Remember, the interviewer said “if.”

6. “What’s the last book you read?”

DO: Mention a book that reflects well on you. Choose something by a reputable author that your interviewer has probably heard of.
DON’T: Name a book you haven’t actually read.

7. “Can you work under pressure?”

DO: Say that of course you can, and then relate a brief story about a time you did.
DON’T: Just say, "Yes I can." Provide a specific example.

8. “Who’s your hero?”

DO: Name a person who has inspired you and then describe specifically how this inspiration relates to your work.
DON’T: Get caught off-guard by what should really be a softball question. Come prepared with a good answer.

9. “Have you ever considered starting your own business?”

DO: Talk about how you are happiest and do your best work in a company that is amazingly similar to the one you’re applying at.
DON’T: Go on and on about how you’d love to be your own boss one day.

10. “If you won the lottery, would you still work?”

DO: Be honest and say you’d be thrilled to win the lottery; then add that even if you did you’d still seek out satisfying work, because work is what makes people happy.
DON’T: Say that you’d never work again (too honest) or that you’d just work for free (too BS-y).

Bottom line: It pays to think through in advance how you would handle some of the more common trick questions. In general, remember never to badmouth or blame others, especially past employers. Be careful not to betray your nervousness with jittery body language. Don’t lie or babble, or show frustration, impatience, disappointment, or anger.

The most important thing to remember is that hiring managers who ask these questions are far more interested in how you answer than what you answer. They just want to see how well you think on your feet. So even if a question completely flummoxes you, keep your cool, smile, and look ‘em in the eye.

TEN WORST JOB INTERVIEW QUESTIONS

2010-03-24T06:18:00.000-07:00

While scanning CV's scattered on the table of our hr this morning, I was reminded of my past interviews. There were times that employer asked me bad questions which confused and offended me. Bad questions really don’t make sense unlike the good ones, but these help the employers judge the technical and mental qualifications of the applicants.

With my actual experiences I have hereunto enumerated my top 10 worst job interview questions along with my answers and "comments".

# 1 How will you see yourself after 5 years?

The most irritating questions of all times. When I was in high school, our English teacher required us to write a formal theme with the topic "My life after 5 years". Absolutely, my teacher was not thinking. She did not realize that we need 4-5 years to complete a bachelor's degree.So it is very much certain that 5 years after high school graduation we are still in college. And when I was in college, our English 101 instructor did the same thing. During our final examinations he gave us one hour to make an essay with this topic "What I wanted to be after 5 years". I hate to be asked by this question. I thought this question is asked only by teachers. I never thought this is one of the favorite questions in the interview. My response: Well, your company looks pretty good!
# 2 Describe yourself in three words.

Is this a beauty contest? How will we describe ourselves in three words? For questions as nonsense as this why don’t we give the interviewer a choking answer? Begin your answer with the phrase "I am". I am lovable. I am "papable". I am yummy. I am sincere. I am loyal. I am honest. My response: three words are not enough!

# 3 Tell me about yourself.

If you got nuts on your head you will surely ask the interviewer, "Don't you read my curriculum vitae?" Curriculum vitae show all the information about the applicant – his jobs experiences, educational background, personal details and so on and so forth which are enough to answer this question. My response: Would you be willing to listen and be with me for at least one hour?

# 4 Rate yourself.

Here it goes. Another irritating question. If you don't expect this question, this will give you a crack on your head. How are you going to rate yourself anyway? You should ask the interviewer what's the highest? If he said 10 rate yourself 9. Certainly his follow-up question would be, "Why only 9?'' Tell him you're not perfect. My answer: 9 over 10, 1 for reservation in case you disagree.

# 5 Why are you interested to work in our company?

This is the common question the employer often asks to the applicants. It's pretty obvious that the need to work for a living is the main reason why an applicant is interested to work. My straightforward answer: I need a job!
# 6 Can you work under pressure?

Nobody will say no to this question. If during the first question, you felt bad about the interviewer and sensed his different aura, then, answer him no. My answer: I'm used to that.
# 7 Do you know how to drive a car?

Funny but true. First time I encountered this question during my interview with my current company. The last interviewer (it was a panel of interview) asked me this question. I was speechless. I applied for accounting position and not as a driver. My answer (short and thoughtless): I know.
# 8 Do you abuse alcohol and drugs?

This is one of the offending questions I always avoid to hear. What made the interviewer ask this question? Do I look like a drunkard and a drug addict? My response: I'm an occasional drinker and I only take OTC drugs.
# 9 If you are a lost character, what would you be?

I don’t like to recall my answer to this question. It was so frustrating. # 10 If a train is traveling to the north, what is the speed of light?

Is this a question of a normal person? This question was asked to my friend. He stood up and walked out.

Tricky and hypothetical questions are often asked by the interviewer to test the psychological abilities of the applicants. They really exist on the interview whether we like it or not.

10 things you should never do at work

2010-03-24T06:12:00.000-07:00

There are a number of things that you should never do at a work place. This would of course include things that have been detailed on your contract and would be a legal agreement. Employees are also generally expected to follow the code of conduct and the contract and almost all of us do follow them – like being in the office at agreed working hours, turning up for a meeting in time, calling up the manager if sick etc. etc. These are all common stuff that everyone is generally aware of and would be happy to follow. But there are a few untold things that may not be expected out of an employee but if followed could help you in a number of ways later…

1. Don’t forget your values
Most companies have a document detailing the code of conduct and the code of ethics. These explain the ethics involved in doing business from a company’s point of view and not from a person’s point of view. I am strong buyer of having a defined ethics for yourself. This could mean turning off the PC when you leave work, buying fair trade coffee for the office, running fundraisers and participating in events, to name a few. You would probably do these things in your personal life – then why not incorporate them in work life? Remember….everyone respects people with values.

2. Never over commit
Only commit what you can do. Trying to over commit to impress managers is a very common phenomenon at work. There are two problems associated with this -
* You over commit and do not deliver and the project goes out of schedule potentially leading to a failure
* You over commit then stress yourself and deliver and your manager is going to assume that is what you are generally capable of delivering.

3. Don’t seclude yourself
Don’t seclude yourself by having lunch at your own desk and not being at a work gathering unless you have a very good reason for doing so. You may be seen to be a outsider within the team and that is something you would not want to be bothered with. Once you start moving with people, it makes it much easier for you to voice your opinion during meetings and people will be more likely to accept your point of view and will be happy to discuss ideas further.

4. Never lose your self-respect
Do not engage yourself in doing thing that would tarnish your self-respect. Sometimes being too down-to-earth can be damaging and one needs to balance his personal preferences with his job role. Cleaning up the mess you created is no problem – but do not offer to clean up the mess someone else created – that is not your job! This doesn’t mean you should not help others when they are in need of some help; but it is not a good idea to keep offering help and letting other take advantage of your good attitude.

5. Say ‘No’ to personal work
This is one of the most important of all “never do this at work” topics. It is better not to confuse the work place with your home. Most of us will not work during personal time, then why do personal work during work time? This would include checking personal emails, logging to social networking websites, reading news etc. etc. That said, it doesn’t mean you should always push personal work after office hours. There may be certain personal things that might need immediate attention and you might not have a choice not to do it. In that case, do keep your manager informed.

6. Never poke into others business.
Understand what your job role is and act accordingly. Companies have various levels of engineers and managers to split the job to be done and get that done effectively. Trying to impress the management by over doing things and by doing that, stepping into your colleagues domain / job role is an absolute NO. If you have potential showcase it in what you are asked to do and not by doing some one’s job.

7. Never lie
Although companies do not use lie detectors to find out whether someone is lying about something they did – it is one of the most important aspects to build a good reputation within the company. If you have done something wrong, it is better to put forward the case with all the facts and then say you would take care the next time. Doing something wrong and being genuine about it is much appreciated than lying about it or pointing someone else for your mistakes.

8. Don’t get into personal relationships
Never ever think of misbehaving with co-workers and avoid entering into any sort of relationships at work. These relationships will invariably lead to messy situations when you have to be decisive with a person with whom you are on a personal relationship. And, the moment this story leaks within the office, it is for sure going to affect your personality and esteem.

9. No backbiting…please.
Talking about others behind their back is completely unprofessional and something that you should avoid. If there is a problem, better call the relevant people – manager, supervisor or even the colleague with whom you have a problem – and sort it out right in front of their face. The moment someone realises that you are talking behind their back, they are going to make you the last person on their ‘much respected’ list.

10. Don’t steal
Well…this sounds straight forward. Most companies have CCTV in their premises and although this is not to monitor what employees do – they can indeed see what you are up to. Most of us would say stealing property like cables, stationary etc. are an obvious ‘NO’. But how about technology?

A Brilliant Interview... Must Read

2010-02-06T21:29:00.001-08:00

Some, rather most organizations reject his CV today because he has changed jobs frequently (10 in 14 years). My friend, the ˜job hopper™ (referred here as Mr. JH), does not mind it. well he does not need to mind it at all. Having worked full-time with 10 employer companies in just 14 years gives Mr. JH the relaxing edge that most of the ˜company loyal™ employees are struggling for today. Today, Mr. JH too is laid off like some other 14-15 year experienced guys “ the difference being the latter have just worked in 2-3 organizations in the same number of years. Here are the excerpts of an interview with Mr. JH:

Q: Why have you changed 10 jobs in 14 years?

A: To get financially sound and stable before getting laid off the second time.

Q: So you knew you would be laid off in the year 2009?

A: Well I was laid off first in the year 2002 due to the first global economic slowdown. I had not got a full-time job before January 2003 when the economy started looking up; so I had struggled for almost a year without job and with compromises.

Q: Which number of job was that?
A: That was my third job.

Q: So from Jan 2003 to Jan 2009, in 6 years, you have changed 8 jobs to make the count as 10 jobs in 14 years?

A: I had no other option. In my first 8 years of professional life, I had worked only for 2 organizations thinking that jobs are deserved after lot of hard work and one should stay with an employer company to justify the saying ˜employer loyalty™. But I was an idiot.

Q: Why do you say so?

A: My salary in the first 8 years went up only marginally. I could not save enough and also, I had thought that I had a ˜permanent™ job, so I need not worry about ˜what will I do if I lose my job™. I could never imagine losing a job because of economic slowdown and not because of my performance. That was January 2002.

Q: Can you brief on what happened between January 2003 and 2009.

A: Well, I had learnt my lessons of being ˜company loyal™ and not ˜money earning and saving loyal™. But then you can save enough only when you earn enough. So I shifted my loyalty towards money making and saving “ I changed 8 jobs in 6 years assuring all my interviewers about my stability.

Q: So you lied to your interviewers; you had already planned to change the job for which you were being interviewed on a particular day?

A: Yes, you can change jobs only when the market is up and companies are hiring. You tell me “ can I get a job now because of the slowdown? No. So one should change jobs for higher salaries only when the market is up because that is the only time when companies hire and can afford the expected salaries.

Q: What have you gained by doing such things?

A: That's the question I was waiting for. In Jan 2003, I had a fixed salary (without variables) of say Rs. X p.a. In January 2009, my salary was 8X. So assuming my salary was Rs.3 lakh p.a. in Jan 2003, my last drawn salary in Jan 2009 was Rs.24 lakh p.a. (without variable). I never bothered about variable as I had no intention to stay for 1 year and go through the appraisal process to wait for the company to give me a hike.

Q: So you decided on your own hike?

A: Yes, in 2003, I could see the slowdown coming again in future like it had happened in 2001-02. Though I was not sure by when the next slowdown would come, I was pretty sure I wanted a ˜debt-free™ life before being laid off again. So I planned my hike targets on a yearly basis without waiting for the year to complete.

Q: So are you debt-free now?

A: Yes, I earned so much by virtue of job changes for money and spent so little that today I have a loan free 2 BR flat (1200 sq.. feet) plus a loan free big car without bothering about any EMIs. I am laid off too but I do not complain at all. If I have laid off companies for money, it is OK if a company lays me off because of lack of money.

Q: Who is complaining?

A: All those guys who are not getting a job to pay their EMIs off are complaining. They had made fun of me saying I am a job hopper and do not have any company loyalty. Now I ask them what they gained by their company loyalty; they too are laid off like me and pass comments to me “ why will you bother about us, you are already debt-free. They were still in the bracket of 12-14 lakh p.a. when they were laid off.

Q: What is your advice to professionals?

A: Like Narayan Murthy had said “ love your job and not your company because you never know when your company will stop loving you. In the same lines, love yourself and your family needs more than the company's needs. Companies can keep coming and going; family will always remain the same. Make money for yourself first and simultaneously make money for the company, not the other way around.

Q: What is your biggest pain point with companies?

A: When a company does well, its CEO will address the entire company saying, ˜well done guys, it is YOUR company, keep up the hard work, I am with you. But when the slowdown happens and the company does not do so well, the same CEO will say, It is MY company and to save the company, I have to take tough decisions including asking people to go. So think about your financial stability first; when you get laid off, your kids will complain to you and not your boss.

IBM TarGet!!

2010-01-15T04:34:00.000-08:00

What killed Ranjan Das? Please Read

2010-01-15T04:26:00.000-08:00

Carried : Wednesday, 11-November-2009

What killed Ranjan Das and Lessons for Corporate India

A month ago, many of us heard about the sad demise of Ranjan Das from Bandra, Mumbai. Ranjan, just 42 years of age, was the CEO of SAP-Indian Subcontinent, the youngest CEO of an MNC in India . He was very active in sports, was a fitness freak and a marathon runner. It was common to see him run on Bandra's Carter Road . Just after Diwali, on 21st Oct, he returned home from his gym after a workout, collapsed with a massive heart attack and died. He is survived by his wife and two very young kids.

It was certainly a wake-up call for corporate India . However, it was even more disastrous for runners amongst us. Since Ranjan was an avid marathoner ( in Feb 09, he ran Chennai Marathon at the same time some of us were running Pondicherry Marathon 180 km away ), the question came as to why an exceptionally active, athletic person succumb to heart attack at 42 years of age.

Was it the stress?

A couple of you called me asking about the reasons. While Ranjan had mentioned that he faced a lot of stress, that is a common element in most of our lives. We used to think that by being fit, one can conquer the bad effects of stress. So I doubted if the cause was stress.

The Real Reason

However, everyone missed out a small line in the reports that Ranjan used to make do with 4-5 hours of sleep. This is an earlier interview of Ranjan on NDTV in the program 'Boss' Day Out': Boss' Day Out: Ranjan Das of SAP India .

Here he himself admits that he would love to get more sleep ( and that he was not proud of his ability to manage without sleep, contrary to what others extolled ).

The Evidence

Last week, I was working with a well-known cardiologist on the subject of ‘Heart Disease caused by Lack of Sleep’. While I cannot share the video nor the slides because of confidentiality reasons, I have distilled the key points below in the hope it will save some of our lives.

Some Excerpts:

· Short sleep duration ( <5 or 5-6 hours ) increased risk for high BP by 350% to 500% compared to those who slept longer than 6 hours per night. Paper published in 2009. As you know, high BP kills.

· Young people ( 25-49 years of age ) are twice as likely to get high BP if they sleep less. Paper published in 2006.

· Individuals who slept less than 5 hours a night had a 3-fold increased risk of heart attacks. Paper published in 1999.

· Complete and partial lack of sleep increased the blood concentrations of High sensitivity C-Reactive Protein (hs-cRP), the strongest predictor of heart attacks. Even after getting adequate sleep later, the levels stayed high!!

· Just one night of sleep loss increases very toxic substances in body such as Interleukin-6 (IL-6), Tumour Necrosis Factor-Alpha (TNF-alpha) and C-reactive protein (cRP). They increase risks of many medical conditions, including cancer, arthritis and heart disease. Paper published in 2004.

· Sleeping for <=5 hours per night leads to 39% increase in heart disease. Sleeping for <=6 hours per night leads to 18% increase in heart disease. Paper published in 2006.

Ideal Sleep

In brief, sleep is composed of two stages: REM ( Rapid Eye Movement ) and non-REM. The former helps in mental consolidation while the latter helps in physical repair and rebuilding. During the night, you alternate between REM and non-REM stages 4-5 times.

The earlier part of sleep is mostly non-REM. During that period, your pituitary gland releases growth hormones that repair your body. The latter part of sleep is more and more REM type.

For you to be mentally alert during the day, the latter part of sleep is more important. No wonder when you wake up with an alarm clock after 5-6 hours of sleep, you are mentally irritable throughout the day (lack of REM sleep). And if you have slept for less than 5 hours, your body is in a complete physical mess ( lack of non-REM sleep ), you are tired throughout the day, moving like a zombie and your immunity is way down ( I’ve been there, done that ).

Finally, as long-distance runners, you need an hour of extra sleep to repair the running related damage.

If you want to know if you are getting adequate sleep, take Epworth Sleepiness Test below.

Interpretation: Score of 0-9 is considered normal while 10 and above abnormal. Many a times, I have clocked 21 out the maximum possible 24, the only saving grace being the last situation, since I don’t like to drive ( maybe, I should ask my driver to answer that line ).

In conclusion:

Barring stress control, Ranjan Das did everything right: eating proper food, exercising ( marathoning! ), maintaining proper weight. But he missed getting proper and adequate sleep, minimum 7 hours. In my opinion, that killed him.
If you are not getting enough sleep ( 7 hours ), you are playing with fire, even if you have low stress..

I always took pride in my ability to work 50 hours at a stretch whenever the situation warranted. But I was so spooked after seeing the scientific evidence last week that since Saturday night, I ensure I do not even set the alarm clock under 7 hours. Now, that is a nice excuse to get some more sleep.

Unfortunately, Ranjan Das is not alone when it comes to missing sleep. Many of us are doing exactly the same, perhaps out of ignorance. Please forward this mail/article to as many of your colleagues/friends as possible, especially those who might be short-changing their sleep. If we can save even one young life because of this email, I would be the happiest person on earth.

SAP India CEO Ranjan Das Dies After Gym Workout
Ranjan Das, CEO and MD of SAP Indian subcontinent
died after a massive cardiac arrest in Mumbai on Wednesday.
One of the youngest CEOs, he was 42

Work @ IT

2010-01-15T04:20:00.000-08:00

Compliance With Labour & Retrenchment Laws in India - Hire & Fire Policy of the Indian IT Industry

2010-01-15T04:09:00.000-08:00

One of the most critical need of the burgeoning Indian software industry and other outsourcing service providers is to have the flexibility and the independence to hire the most worthy of the manpower and fire the unproductive employees. There is also a growing need to draw a fine balance between the hire and fire policy of the employer and the rights of the workmen. This article proposes to discuss the Indian retrenchment laws, right of compensation of employees and applicability of these laws to Indian Information Technology (the "IT") industry.

Termination of employment needs to be in accordance with the Shops and Establishments Act as applicable to the jurisdiction where the IT company is situated and the Industrial Disputes Act, 1947 (hereinafter the "ID Act"). The Shops and Establishment Act usually enables the employer to discharge his employee, other than an employee engaged for a specified period or in a leave vacancy, from the service by providing the employee a thirty (30) days notice in advance or such longer period as may be required under the terms of employment or salary in lieu thereof.

The Shops and Establishments Act is not usually applicable to employees occupying positions of confidential, managerial or supervisory nature, i.e. all non-workmen can be terminated at will in terms of the contract of employment entered into with the respective employee.

The ID Act which is applicable to all industrial and commercial establishments defines employee/workmen and both skilled or unskilled persons may be considered as 'workmen'. However, a person employed mainly in a managerial or administrative capacity or if the nature of services rendered by an employee is supervisory in nature, the employee may not be considered as workman. In view thereof, the Head, Project Managers, Manager (business development) of the project teams at an IT or outsourcing company may not be termed as 'workmen' subject to actual assessment of their roles and responsibilities. However, it is likely that the other team members, associates, trainees, etc., employed by an IT company may be considered 'workmen' subject to assessment of their specific job profiles, roles and responsibilities.

Termination of service of a workman (other than for specified reasons as discussed below) is referred to as 'retrenchment'. In terms of section 2(oo) of the ID Act, retrenchment "means the termination by the employer of the service of a workman for any reason whatsoever, otherwise than as a punishment inflicted by way of disciplinary action, but does not include -

(a) voluntary retirement of the workman; or

(b) retirement of the workman on reaching the age of superannuation if the contract of employment between the employer and the workman contains a stipulation in that behalf; or

(bb) termination of the service of the workman as a result of the non-renewal of the contract of employment between the employer and the workman concerned on its expiry or of such contract being terminated under a stipulation in that behalf contained therein;

In view of the aforesaid definition, it is clear that employees who have been employed for a specified training period may be asked to leave at the conclusion of that period without providing them an offer of employment by the IT company. If the company needs to extend their training period, it may extend the specified period and reserve its right to offer employment at the conclusion of the extended training period failing which the training period of each of these employees would be deemed to have been concluded.

The legal requirements with respect to termination of services are more onerous once a company employs more than 100 workmen. In terms of ID Act, if an industrial establishment employs more than 100 workmen, a company may not retrench, that is, terminate the services of any workman who has been in continuous service for not less than one year unless the (i) workman has been given three (3) months notice in writing indicating the reason for retrenchment and the period of notice, and (ii) the prior permission of the concerned state government has been obtained for the retrenchment (section 25N of the ID Act).

If the permission is not obtained, the retrenchment will be deemed to be illegal from the date on which the notice was given and the workman will be entitled to all the benefits under law as if no notice had been given to him. From a practical standpoint, obtaining state government's approval for retrenchment is considered nearly impossible due to the implications of the resulting unemployment. Therefore, companies rarely apply to the state government for permission for retrenchment. Penalty for contravening the aforesaid provisions on retrenchment is imprisonment up to one month or fine which may extend to Rs. 1000, or with both. Assuming that the state government approval is obtained, the services of the workmen can be terminated upon provision of three months' prior notice and payment of 15 days average pay for each completed year of service in excess of six months.

The term 'workmen' within the meaning of ID Act has not been interpreted by the courts with specific reference to data processors or software workers. However, the courts have addressed the question whether a company engaged in the development of computer software is an 'industrial establishment' within the meaning of the ID Act. In the matter of Cholamandalam Software Ltd. v/s. Additional Labour Court Madras [(1995) (S) LLJ 78 Mad], the Hon'ble Single Judge of the Madras High Court examined the question whether Cholamandalam Software, a company rendering computer services relating to the collection and maintenance of information and developed computer software applications for the requirements of its customers, was an 'industrial establishment' within the meaning of section 25L of the of the ID Act. For the purpose of solving this question the Hon'ble Judge addressed the question whether the company was a 'factory' and engaged in any 'manufacturing process'. The Hon'ble Judge stated that Explanation II to section 2(m) of the Factories Act is clearly intended to exclude the premises on which electronic data processing or computer units are installed and wherein no other manufacturing process is being carried on from the scope of the definition of 'factory'.

The Hon'ble Judge, thus, essentially took the view that electronic data processing units had been specifically excluded from the definition of 'factory' in Explanation II. Therefore, Cholamandalam Software could not be considered a factory under section 2(m) of the Factories Act and in turn, could not be considered an 'industrial establishment' within the meaning of section 25L of the ID Act. This judgment was later upheld by the Division Bench of the Madras High Court, after which the workmen of the company filed an appeal in the Supreme Court. The Supreme Court while distancing itself from the interpretation provided by the Madras High Court recognized that the key question is whether the activity of data processing and preparation of software would constitute a 'manufacturing process' and further referred the matter to a larger bench of the Supreme Court for consideration, the decision of which is still awaited.

In view of the pending Supreme Court's consideration, the question as to whether the software companies or other outsourcing service providers would constitute an 'industrial establishment' under the ID Act remains unanswered as of date and there is no clarity as to whether a software company can dismiss its employees without compliance with the ID Act if it has more than 100 employees.

From a practical standpoint, the IT industry does not consider itself an 'industrial establishment' within the meaning of section 25L of the of the ID Act and follows the 'hire and fire' policy without compliance with the ID Act of seeking prior state government approval, taking support from the Division Bench judgment of the Madras High Court which has held that the software companies are not an 'industrial establishment' and hence are not covered under the stringent provisions of retrenchment mentioned under Chapter VB of the ID Act.

Notwithstanding the above flexibility, the software companies will need to comply with the retrenchment related provisions of section 25F of the ID Act which applies to all industries (and not only industrial establishment) and requires that "no workman employed in any industry who has been in continuous service for not less than one year under an employer shall be retrenched by that employer until -

(a) the workman has been given one month's notice in writing indicating the reasons for retrenchment and the period of notice has expired, or the workman has been paid in lieu of such notice, wages for the period of the notice;

(b) the workman has been paid, at the time of retrenchment, compensation which shall be equivalent to fifteen days' average pay for every completed year of continuous service or any part thereof in excess of six months; and

(c) notice in the prescribed manner is served on the appropriate Government or such authority as may be specified by the appropriate Government by notification in the Official Gazette.

In view of the foregoing, an IT Company may terminate the services of those employees who have not completed one year of employment in terms of their respective contract of employment, i.e., by providing a minimum notice of one month without compliance with the aforesaid retrenchment provisions.

As regards the employees who qualify as 'workmen' and have competed continuous service of one year, in cases other than misconduct, the IT company may terminate their services by providing minimum one month's notice (or such agreed notice) in writing indicating the reasons of termination together with retrenchment compensation equivalent to 15 days average pay for every completed year of continuous service in excess of six months and necessary intimation is provided to the appropriate labour authority.

Article: Seema Jhingan!!