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Hi All,

Need Help & Guidance on the below issue.

Ours was a new company started on the 4th Oct 2011 in Mumbai and employed approx 75 employees over in 12 locations in India.

Our appointment letter had the below 2 pts among others mentioned in it

c. You will be on probation for a period of six months from the date of appointment. If in the opinion of the company you are found suitable in the appointed post you will be confirmed. Unless otherwise communicated to you in writing, your services shall stand confirmed at the end of the probation period.

d. The employment is terminable by either party giving 15 days notice within the confirmation period and 90 days notice beyond the confirmation period. If notice is not given salary for 15 or 90 days will be recovered as the case may be with a mutual understanding as per the discretion of the senior management.



Most of the employees are now over 6 months in the company.

Of course we knew that company in the last 2-3 mths was not doing well and clients had reduced.

Till yesterday however it was business as usual, with employees busy as usual with their work, completing their projects, tasks, and it was a hectic as well

Today morning the chairman along with the MD starts calling employees one by one and tells them to not come from tomorrow. Initially there are 6-7 such employees

Then all of a sudden he further takes a drastic step stating that he is closing down the company and all will have to leave except some 5-6 who will be absorbed in his old firm

Including the CEO, the VP's and all employees have been terminated

At best they they will pay us till end of Jan (mind even our dec sal is pending)

My request to fellow member would be on the below:

1. Do we all employees (in Mumbai) have any legal recourse?

2. When in our appt letter it mentions 3 months notice by either party is it right that they pay us and give us time only till Jan end

3. Most of us will be jobless and finding a new job takes at least 2 months or more

4. The appt letter has the signature of the CEO but he too has been asked to leave

5. If we are within our rights to file a complaint please guide me where and how do we take this further

6. Main concern is for employees in Mumbai where the HO was located and had about 45 employees

Any other help or guidance shall be appreciated (have uploaded our sample appt letter)

Please do assist as we have been left high and dry by the company where we had worked even on holidays and Sundays when work pressure was high as we wanted the company to grow.

Thank you.

Cyrus.

From India, Mumbai

Attached Files
File Type: doc sample appt letter.doc (31.5 KB, 21 views)

Hello Cyrus,

While empathizing with the situation you & your fellow colleagues are in, it's also better to be realistic.

Coming to your queries:

1. Do we all employees (in Mumbai) have any legal recourse?

Legal recourse is always available for most HR issues/situations. But usually it's MORE of 'whether to go for it' in such situations, since there's always a downside to such choices. In your situation, you need to decide if you & others want to focus on legal cases or finding the next job.

2. When in our appt letter it mentions 3 months notice by either party is it right that they pay us and give us time only till Jan end

The Company is bound to pay all of you as per the Appointment Letter. Maybe the Legal recourse can be used to get these dues.

3. Most of us will be jobless and finding a new job takes at least 2 months or more

Frankly, whether we like it or not, that's a part of the globalization phenomenon...or rather one of the downsides. The IT industry is full of such stories/situations, the last seen during the 2008 global recession. One needs to focus on 'how to handle it' rather than spend time & effort on the 'how & why of it'.

4. The appt letter has the signature of the CEO but he too has been asked to leave

That shouldn't matter--since he was IN SERVICE when the Letter was issued. The Appointment Letter all of you have will be valid--UNLESS the company now says they weren't genuine [don't be surprised--there are crooks who are capable of saying it].

5. If we are within our rights to file a complaint please guide me where and how do we take this further

Suggest wait for the Legal members in CiteHR to respond. The ideal way would be to approach an advocate--but you need to ensure you are hiring the right one. Else, the case could go on for years & you would just be spending time, effort & money.

Hope this helps.

All the Best.

Rgds,

TS

From India, Hyderabad
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