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Employer FIRES 900 workers over Zoom call

The boss of a mortgage firm made the decision to dismiss staff just a few weeks before Christmas.

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A digital mortgage business has been thrust into the spotlight after its boss chose to fire 900 employees on a Zoom call.

 

The CEO of US firm Better.com, Vishal Garg, hosted the call who branded them the “unlucky group” who were going to lose their jobs, terminating their roles with immediate effect.

 

According to the Independent, the leader told his employees that he would do his best not to cry over their departure from the business, informing them often that he did not want to make such a decision.

 

However, he noted that the “market had changed” which had impacted his decision to fire the mass number of workers.

 

In contrast, an anonymous blog post that was shared on social network Blind, which was attributed to Garg, revealed that he may not have been as reluctant to fire his employees as he first seemed.

 

This is because the blog post stated that he accused his employees of being “lazy and unproductive” and said that they had stole from his business and their colleagues by only working two hours a day, despite logging on at 8am.

 

Review site Trustpilot has since received a number of negative reviews, with many users criticising Garg and the company.

 

One reviewer explained: “Laying off this many people at this time of the year is a horrible thing to do and all to line his own pockets whilst blaming those he laid off.”

 

Another labelled the business “absolutely awful” for choosing to lay off staff in such a manner so close to the festive break.

 

After a leaked recording of the call surfaced, Garg has since written an apology to staff.

 

“I want to apologise for the way I handled the layoffs last week. I failed to show the appropriate amount of respect and appreciation for individuals who are affected and for their contributions to Better,” he said.

 

“I own the decision to do the layoffs, but in communicating I blundered the execution. In doing so, I embarrassed you.”

 

Not ‘permissible’ in UK

Reflecting on the way in which Garg chose to lay off staffers, Chris Deeley, employment solicitor at JMW Solicitors, has shared that this conduct would not be “permissible” in the UK.

 

He noted that rules around redundancies and dismissals are far more strict.

 

“While it might be legally acceptable in the United States, this approach to business restructuring would certainly not be permissible here in the UK, where the rules around redundancy process (and dismissals more generally) are considerably more stringent,” he continued.

“Even notwithstanding the legal position, employers finding themselves in such a situation should also ensure they act with caution and compassion, to avoid further alienating retained staff or indeed customers.”

 

While the laws may differ in the US when it comes to dismissing employees, this incident demonstrates the importance of handling dismissals with care and how such carelessness can greatly impact employer branding.

 

To keep up with the latest employment news, sign up to the Reward Strategy newsletter here.

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