Kiran Shah thought he was doing the right thing. The founder of Market Fit@Go Zero moved his startup’s salary payments from mid-month to the first—a gesture of goodwill designed to ease his employees’ early-month financial pressures. Instead, he got a harsh lesson in modern workplace dynamics: four employees resigned on payday, without notice, pocketing their salaries and walking out the door.
Shah’s social media post about the incident ignited fierce debate across India’s startup ecosystem. Was this the new normal—employees treating companies as mere stepping stones? Or does the fault lie with employers who have failed to create workplaces worthy of loyalty?
The episode reveals a fundamental tension in today’s labour market. As talent becomes increasingly mobile and workers more assertive about their needs, the traditional compact between employer and employee is fraying. But whilst power dynamics shift, the question of ethical exits remains murky.
The hierarchy of harm
Not all departures are created equal, argues Mukul Harish Chopra, CHRO, Transaction Solutions. “Salary is paramount for frontline workers because their immediate livelihood depends on it,” he explains. Unlike senior professionals who carefully weigh reputation and references, frontline employees may not grasp the long-term consequences of hasty exits.
“Salary is paramount for frontline workers because their immediate livelihood depends on it. Unlike senior professionals who carefully weigh reputation and references, frontline employees may not grasp the long-term consequences of hasty exits.”
Mukul Harish Chopra, CHRO, Transaction Solutions
This pragmatic view acknowledges a harsh reality: different employees face different pressures and possess different leverage. But it also suggests that ethical obligations vary by circumstance—a nuanced approach that many companies struggle to implement.
Pankaj Lochan, CHRO, Navin Fluorine, offers a more structured framework, dividing workplaces into three categories with distinct ethical imperatives. In manufacturing or operations where safety standards are paramount, sudden exits without notice are “not only unethical but potentially dangerous.” An operator managing critical equipment cannot simply vanish without jeopardising workplace safety and team welfare.
“In manufacturing or operations where safety standards are paramount, sudden exits without notice are “not only unethical but potentially dangerous.” An operator managing critical equipment cannot simply vanish without jeopardising workplace safety and team welfare.”
Pankaj Lochan, CHRO, Navin Fluorine
Service functions such as HR or finance allow more flexibility, since their roles, whilst important, don’t directly disrupt core operations. Here, early exits with adequate planning may be manageable.
The third category—startups and transient roles—operates in a grey zone. These dynamic environments often lack formalised transition processes, making flexibility both necessary and inevitable. “Exit ethics depend on the immediate business risk,” Lochan notes.
The ripple effect
The impact of any departure depends heavily on organisational position, as Lochan illustrates with the classic pyramid structure: one manager supervises five subordinates, who themselves manage more employees. A single departure can quickly affect hundreds of workers.
For middle managers overseeing large teams, serving notice becomes vital for continuity. Without proper handovers, projects stall, client trust erodes, and stakeholder relationships suffer. The higher up the hierarchy, the greater the moral obligation to ensure smooth transitions.
Yet Chopra advocates for pragmatic flexibility: “If the employee provides a proper handover, even remotely, I may waive off the notice period.” This approach balances business continuity with individual circumstances—a mature response that recognises modern work realities.
Context matters
The most crucial distinction, however, lies between departures driven by opportunity versus those caused by toxic conditions. Lochan rightly points out that companies must differentiate between employees leaving for better offers and those fleeing burnout or harassment.
“If an employee is leaving due to toxic leadership or mental health challenges, immediate exits may be justified,” he argues. But departing without notice simply for a better opportunity causes unnecessary disruption—a breach of the implicit contract that binds workplace communities together.
This distinction highlights why workplace culture matters. Organisations that address grievances openly, encourage feedback, and resolve conflicts early create environments where ethical exits become the norm. Those that don’t often find themselves blindsided by sudden departures.
Planning for the inevitable
Chopra introduces business continuity planning as a solution. Just as companies prepare for natural disasters or pandemics, they must anticipate critical incidents from employee departures—including sudden resignations or incapacitation.
This preparation involves formalising knowledge-transfer documents, creating standard operating procedures for transitions, and nurturing relationships so departing employees remain accessible for consultation. A “via media” approach—where employees leave physically but remain mentally connected—proves far more beneficial than forcing disengaged workers to stay.
“When an employee formally resigns, attempting to hold on to them just to fill a warm body is counterproductive,” Chopra explains. “Such an employee becomes a liability because you are paying them more and getting minimal output.”
The new compact
The debate sparked by Shah’s experience reflects broader changes in how work itself is conceived. The traditional model—where loyalty was exchanged for security—has given way to more transactional relationships. Employees increasingly view jobs as temporary arrangements, whilst employers treat workers as disposable resources.
Yet this shift need not eliminate ethical obligations entirely. Instead, it requires new frameworks that acknowledge changed realities whilst preserving mutual respect. The most successful organisations will be those that create cultures where ethical exits are expected, planned for, and handled gracefully.
Shah’s decision not to reverse his salary policy—despite the walkouts—demonstrates this mature approach. He refused to punish all employees for the actions of a few, recognising that trust, once broken, cannot be rebuilt through punitive measures.
Every exit is not just an ending but an opportunity—for learning, improvement, and occasionally, future reunion. In an era where talent is precious and agility vital, a graceful departure with proper notice isn’t just ethical—it’s smart business.
5 Comments
Hi Radhika,
Beautifully crafted and researched article on a very important and contemporary topic. This is such an important reality check as we prepare for the Gen Zs to fuel the nation’s move towards a $5Tn economy.
The ability of organisations, especially of its HR folks, to assess, learn, unlearn and relearn newer methods to adjust to modern paradigms become super important. This shall become the New Global Order of work.
However, the adage of ‘Culture has Strategy for breakfast’ shall remain. The pressure comes right back on to organizations to instill a culture of open communication and mutual self-respect while providing space for growth, for employees and employers alike.
Looking forward to more such articles. Happy to help in any way.
Kind regards,
Rajesh Kurup
CHRO, Rasi Seeds Pvt Ltd
+91.9999663999
After 21 days employee must tell where he or she is.
Well put. Would love to see more of this
Am currently in a situation that I don’t know what to do at the moment
I was promoted and given a 3 month contract appointment letter, when it expired, I engaged my immediate supervisor and branch manager as per our companies rules. Letter wasn’t renewed and salary stopped coming in,now for 3 months. When I told my bosses at the branch again, all they could tell me was HR knows, top bosses know, just keep working and be patient.
I have no money to pay bills, house rent and other family needs, I engaged hr but all they tell me is to be patient and its taking long to the extent that am losing myself. I was considering first leaving work and go home so that when they pay me I finally go back and sort out bills. Kindly help and guide on how I can go about this whole situation/ drama
Employees leaving without notice serving notice period is happening mostly with junior level management this could be arrested only where employers of any sector insist for proper relieving orders and references from previous employer and it should be the obligation of employer to be reciprocal when references are requested by other employer otherwise this would be a perennial problem . Also employees should be properly settled by employer only that would gain confidence of existing workforce .