Hi all , I have a friend who was recruited and immediately terminated because the company wanted to cut down on company costs . Some fact about him 1) He worked there only for 25 days 2) He was offered stock options 3) He was paid one month notice pay . 4) In the previous organization he spent a long time ( more than 6 years ) My qn is 1) Can he demand for more severance ( 3months gross ) 2) Can he demand for the stock options . 3) He had a performance linked bonus every quarter . What happens to that ? 4) Is it legal to hire and Fire in India for no fault of his . he was clearly communicated that he was terminated only due to his cost and not because of his non-performance . Appreciate your response thanks, Madhu
27th November 2008
First of all let me say that it is unfortunate that your friend had to leave his new establishment soon after joining. As cost reduction step if a company decides to terminate any of its employees and do like that following the provisions of the Industrial Disputes Act or as per Standing Orders of the company, there is nothing wrong. The company can proceed with retrenchment and the last employee employed will be the first to be terminated. Though it is not necessary to serve notice or pay notice pay for those who have not completed one year of service (means at least 240 days of work in the preceding year), your friend's company has served notice or paid notice pay for one month. That is sufficient and he cannot ask for more legally. Having joined the company after leaving a good organisation with 6 long years is no ground for getting more retrenchment benefits from the present employer. Therefore, there is no legality in asking for more than what are offered to him. Regards, Madhu.T.K
28th November 2008 From India, Kannur
Add Reply Start A New Discussion

Cite.Co - is a repository of information created by your industry peers and experienced seniors. Register Here and help by adding your inputs to this topic/query page.
Prime Sponsor: TALENTEDGE - Certification Courses for career growth from top institutes like IIM / XLRI direct to device (online digital learning)

About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2019 Cite.Co™