Valuable discussion indeed.
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It is hoped that some points may come handy to handle this situation:
1. MET WITH ACCIDENT. - He did not plan. Today it is he. Tomorrow the HR person may i.e. may. What will happen if bad precedence is set?
2. The company is in a better position. Yes, it cannot afford too much of philanthrophy. But ESI, insurance etc take care to some extent & some moral support is needed at this sort of hour..
3. The company always has the option of short term employment, say contractual employment, piece work etc. In this mode, full time (experienced) employee/s could be staggered in the task that the sick man was in & the new comer could be given suitable work so that the work gets shared & not suffers.
4. 'Not sure of what sort of company this is. From the way it is being said that the company is wanting to recruit afresh, it is felt that the company lies somewhere between, in the product chain. (One company's product is another company's input if the work involves a chain of work). Whatever it be, the functionality, 'Quality' normally involves in house AS ALSO customer checks. Thus, this company could even explore attracting the workforce of the allied company in a completely legal & fair manner after due permission from the authorities of that company.