Hello All,
I am working as a Human Resource Leader for a Multinational firm and report to the Global Human Resource Manager in Canada. They have asked me to get details on Lay off compensation package. If we fire staff on the grounds of recession what is the compensation package and notice we need to provide and also letter of termination. Please help its really urgent..

From India, Mumbai
In our organisation, to make the exit amicable, we are requesting employees to be laid off to put in their resignations and refraining from giving them the termination letter.
Our lay off package includes :
1. Two months salary
2. EL encashments
3. Any tenure based bonuses to be paid off prorated basis, even if tenure not completed.
4. Gratutity to be paid off even if 5 years are not completed (this will be a kind of bonus)
5. Any outstanding loan (if amount is not huge) waived off.
- Payal

From India, Delhi
Thank you Payal.. Just to give you more details are total staff strength is 30 employees which includes 7 support personnell. The appointment letter mentions One month notice or payment in lieu of notice. We plan to retrench about 8 to 10 employees. Do we still need to pay 2 months salary. Our company has been in existence only for 15 months. Please advice...

From India, Mumbai
it is discussion between you and your staff.but legally if you want to terminate them like that than pay notice pay of one month as per appointment letter,pay retrenchment compensation ie 15 days salary for every year of service and other dues like leave encashment etc.
j s malik

From India, Delhi
Actually I was talking about the modus operandi in my company.
If your offer letter mentions One month notice or payment in lieu of notice, then you need to pay onley one month salary NOT two months.
Also, you can help them in fine tuning their resumes, giving the consultants contact no and also give them assurance that in case they get a job, they will be given a good personal recommendation by you people!
Bitterness will be there, you just need to see how can you do the exit amicably!
- Payal

From India, Delhi
Hi Shirley,
Depending upon the notice period mention in the Appointment letter you need to pay them the notice period salary and any bonus / performance variable pay, if applicable, ensure that you are doing in the fashion that employees themselves are putting in their papers rather than you are asking them to leave otherwise it would be a difficult and complex thing to do. How big is your firm depending on that size the law is applicable. So find the easy way out and ask them to resign and leave and give them Relieving letters instead of retrenching letter....

From United Kingdom
Mr Sahni, I appreciate your help. Our firm is over 400 employees across the globe, but we have only 30 employees in Mumbai. Do we have a labour law to the effect of retrenchment due to recession? Any basic requirements we need to comply?
Im the only local HR representative reporting to Canada, any help is really welcome & appreciated.. Thanks...

From India, Mumbai
dear friends
My opinion is that as per the law, if company sends the employee on layoff, they have to give 15days salary even the production not taking place. Once the company runs in full production, then these people will be taken back as normal employee.
am i right?
please clarify.

From India, New Delhi
It is totally depend upen the company policy. If ur organisation retrenche employees,in further case if any requirement or vacancy will come in future then you give priortity to retrenche employee. Retrenched employee possible when the employee is not completed one year of service.
Appa Rao

I agree with Mr Appa Rao that it depends on the company policy.
In current scenario most of the companies are asking for the resignation and providing gross salary for the notice period mentioned in the appointment letter.
Mradul Bhatnagar

From India, Bhopal

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