In last month I met three clients who were actually terminated from the company but asked by the management to give resignation instead of letting the company give them a termination letter and in each case, I told the client not to give resignation but to allow the company to terminate them.
What would you do if your employer will tell you that since you have worked so long with us we don't want to terminate your services so you better resign yourself. I would resign if I understand my performance is not good but what if my performance is very good and they don't have the reason to terminate me?
If a company wants to avoid paying compensation to the employee while removing him what they would do? They would not terminate him or her but will politely ask the employee to resign to avoid paying him compensation for unfair dismissal.
Do you know why the companies are asking employees to resign and are reluctant to terminate him? I will explain it to you with the help of Article 111.
Article 111 (a), (b) and (c) says as follows:
a- If the employer terminates the indefinite labour contract within the first three month as of the start of work, the worker shall not be entitled to any compensation, unless the termination is an arbitrary dismissal in accordance with any of the provisions of Articles 104 and 105 of this Law and in this case the worker shall be entitled to a compensation equivalent to a one month wage.
b- If the employer terminates the indefinite labour contract for no reason or for an illegitimate reason following the expiry of three month as of the date of start of work, he shall undertake to compensate the worker with a compensation equivalent to the wage of two working days per each month of service, with a minimum of one month wage and a maximum of twelve months wage.
c- If the employer terminates the definite labour contract for no reason or for an illegitimate reason, he shall undertake to compensate the worker with a compensation equivalent to the wage of the remaining period of the labour contract, unless the parties agree on a lesser compensation provided the compensation agreed upon does not fall below the wage of three months or the wage for the remaining period whichever is lesser.
I hope after reading the above Article its clear to you that why your employer is so nicely asking you to resign and not terminating you. They know if they terminate you without a reason then they have to pay compensation for unfair dismissal so what's better than asking employee to resign.
If your company tries to do the same with you don't resign let them terminate you otherwise you will lose your right to claim compensation.[/i][/i]