Saswatabanerjee
Partner - Risk Management
Tsivasankaran
Consultant
Saravanakumarbalakrishnan
Asst. Manager - Hr, Cethar Constructions
+4 Others

Dear Sir I would like to know whether a senior level employee ( Manager and above who have served for 10 plus years ) be retrenched. Regards Lalith.B
From India, New Delhi
If he is performing functions of a managerial nature, you can terminate his services as per company's rules and procedure and principles of natural justice and you need not follow any retrenchment procedure prescribed under the Industrial Disputes Act..
B.Saikumar
HR & labour Law Advisor
Mumbai

From India, Mumbai
You need to understand that the word 'retrenchment' will be used only with reference to a workman under sec.2(s) of the Industrial Disputes Act and a manager is not a workman and thus technically you can not retrench him. However, by retrenchment, you mean simple termination, then you can do so by following the rules of the company like issuing required notice or pay in lieu of notice or if you are terminating him for any misconduct, you need to conduct domestic enquiry etc. You hav eto first go through your company policy in this behalf.
B.Saikumar
Mumbai

From India, Mumbai
Your question is whether a Manager can be retrenched??
The word "retrench" means "cut back" or" economise". For your simple question of whether a Manager can be retrenched, the answer is " any one in the organisation can be retrenched" in its business sense.
Now the word "Retrenchment" in legal language in India refers to "retrenchment under Industrial Disputes Act" This requires certain formalities to be complied with. These formalities are not required to be followed in case of employees who do not fall under the definition of " workman" under Industrial Disputes Act.
Having said this, I would like to emphsise on what is known as 'values and ethics" in running a business
A person works for 10 years as a manager and due to business constraints, he is being retrenched requires careful examination and handling separation must be very sympathetic. Must ensure that he can manage his family at least for next one year

From India, Chennai
Dear All,
Greetings!
I fully agree with both Mr.Saikumar & Mr.Sivasankaran. But in deep consideration, a Manager worked for 10 Years should not be simply terminated in view of cost cutting. His service should be valued and as said by Mr.Sivasankaran, his potentiality to maintain his family also to be taken into account.
Hence simply giving one month notice or one month pay in lieu of notice period would not serve any purpose. Atleast three months notice would be required to shift his employment suitably, because getting a suitable job in a required place would be very difficult.
So, every management should look this matter from the shoes of the employee who has put a long reliable service with them, before cut back.
If I said anything wrong, seniors, pls guide me.
Regards,
B.Saravanakumar

From India, Bangalore
Dear all,
The word retrenchment cannot be taken for a single individual alone in the industry. What I mean is a rule cannot be applied to a single person alone. If the company decides to bring in retrenchment , it should implement it enmass. Normally retrenchment is followed with the guide lines " Last come, first go" policy.
But every company has its own rules and regulations in this matter.
Only resort for such grieved persons are the resorting to the justice of law.
best wishes.

From India, Mumbai
One important point : please see the definition of worker before you decide he's not covered under the industrial dispute act. Just because he is designated as a manager is not enough. He must actually be in a managerial or servisory position and his nature of work must be such.
If he is a worker, the rules of retrenchment under the act must be followed including payment of retrenchment compensation. If not, then you can terminate his services with notice pay as required under the terms of employment or rules of your company
This is the legal requirement.
The other suggestions made by my fellow members are equally valid.

From India, Mumbai
What is the reason to retrench go first. Then peep through the provisions as optional , whether to domestic inquiry or ret. Compent. And then the set -up policy. Anil d trivedi solicitor
From India, Mehsana
Dear Lalith,
You have not given your position in the company as to in what capacity your are functioning? As seniors have advised, some moral values are on the shoulder of the management, since juniors and equally designated employees will definitely watch the happenings in the higher ups level, and if the is an exodus or feeling in the minds of other employees of dissatisfaction, where does the matter of cost cutting remains? Since then sincerity will not in the mind of employees. It is better let the management take him in to confidence, make him understand the company's financial position, give him time to search for another job and then let him resign. Which will definitely the moral boosting step in the eyes of other employees.

From India, New Delhi
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