I am working in a Health care company head quartered at Mumbai, Our company has several retail outlets throughout the country. Our management has conveyed the employees that it has sold the assets and liability of the company to other management. And now our new employer is planning to give us new appointment letter and they are transferring all the employees to their HO based at Delhi after 3/4 months. It is practically not possible for our employees to go there, my question is if someone is not accepting the offer can the employee claim compensation from the present employer or not.
Dear friends please help me in this regards as it will help many of my innocent employees, you are also requested to address any valid points related to this types of scenario.
Thanks N Regards,
From India, Mumbai
This is a case of closure of establishment. As per section 25F (25N in case the establishment employs more than 100 employees) employees are required to be paid compensation at the rate of 15 days salary for every completed year of service. 25FF also states that necessary formalities are to be followed in the case of workmen as if they are retrenched if the ownership of the undertaking is transferred. However, if the transferee (new company) is willing to absorb the employees without any change in their service conditions and considering their length of service etc, then no compensation is required to be paid. At the same time, if any of the employee does not want to be in the rolls of the new company due to any reason like change in the place of posting, then he should be compensated as if he is retrenched.
From India, Kannur
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