Dinesh Divekar
Business Mentor, Consultant And Trainer
Asso.prof.(commerce & Management) Pg
[email protected]
Manager In A Pvt Company
+1 Other

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Hello all,

I am new to this forum. Reviewed & found most of the discussions interesting. Kindly somebody clarify the following:

My wife was working with a Pvt Ltd company for last 10½ years. This company was run by 2/3 partners. Suddenly they sold it to an MNC from Spain. The new employer orally assured all the employees that they will have job security & none will be terminated or removed from services after take over. They issued fresh appointment orders & salary revision 6 months before. My wife is one among them & she is a permanent employee with 13 years of service left out.

To our surprise, within 6 months, they have started terminating senior staffs one by one by collecting their resignations. The reason cited is that as there are more employees in each department, they are reducing extra staff & it is their company policy. The new employer is paying the notice period salary as per agreement (after takeover). The affected staffs are mentally disturbed. Only in July 2014, my wife had submitted her yearly appraisal with positive remarks & there is not even a single black mark in all these years of service.

Kindly advise (1) whether she can reject to accept their request to resign? (2) whether she has the right to claim VRS option duly considering her leftout service of 13 years instead of just submitting the resignation & getting 3 months salary (3) whether she can seek remedy thro' court or Labour Commissioner?

Also kindly clarify that if she refuses to submit the resignation & want to continue her job or go on VRS, but the management does not accept it & terminates her forcibly, then what is the solution? Whether she can file a suit against the management for breach of their oral assurance?

From India, Bangalore
My wife was working as Officer-Purchase (after acquisition) & prior to that designated as Supervisor but was doing the job of Front Office Executive.
From India, Bangalore
Dear maniviji,

Recently there was discussion on similar lines. You may click the following link to refer it. Reading that thread of discussion will solve some of your queries:


Replies to your queries are as below:

Kindly advise (1) whether she can reject to accept their request to resign?

Comment: - Yes, she can resist the attempt by employers for forcible resignation. But beyond a point this will not work as management may remove her under the grounds of "services no longer required". As such they are ready to pay as per the terms of employment. Therefore, they are not violating any law.

(2) whether she has the right to claim VRS option duly considering her leftout service of 13 years instead of just submitting the resignation & getting 3 months salary

Commnet: - Voluntary Retirement Scheme (VRS) is generally run by government organisation to cut down the flab. This scheme is also run by other infra or heavy industry companies. However, VRS is not ongoing scheme. This scheme has to be declared by the employers. Employees can avail it of thereafter. Have your wife's employers declared this scheme?

(3) whether she can seek remedy thro' court or Labour Commissioner?

Comment: - If she has more than years of service then she must be holding a senior position. Provisions of ID Act 1947 may not be applicable to her. Therefore, little purpose will serve if she approaches Labour Commissioner. Nevertheless, she may visit office of Labour Officer (LO) of her area. Possibly LO may be able to tell some loophole. But the there could be new challenges in the wake of litigation. Judicial redressal is very slow in India. Please note.

Whether she can file a suit against the management for breach of their oral assurance?

Comment: - Oral assurances have no value in the court of law.

Final comments: - While working in any company, trust of employers is utmost important. Once one's seniors do not trust particular employee then there is no point in continuing. Neither litigation will serve purpose. It will bring additional mental burden. Why your wife is interested in continuing with this company only? If she is good in her job then she should be able to handle her job at any other place too. Therefore, my suggestion is to reconcile with the situation and move on.

The biggest problem with your wife appears to be the mental inertia. She is so attuned to particular set of environment and she is reluctant to come out of it. For the time being imagine opposite. In the last ten and half years, suppose she had changed job after every three years. In that case she would have been in her fourth job. In that case, she would have left job instead of clinging to the current employers.

She has transited from Front Office Executive (FOE) to Purchase Department. This goes on to show that she is willing to explore new areas. However, this transition was within the defined limits of the company. This time she has to transit beyond the boundary.

I understand that leaving job after ten and half in one company years is too difficult. There could be few loans and EMIs could be staring at both of you. But then career is part of life. Nothing is certain in life. How the circumstances will change that nobody can predict. Take the example of Mr Naresh Goyal of Jet Airways. For the sake of survival of his company, he had to remove his wife from the board. Can you imagine how difficult would it have been to bite this bullet? Let your wife take it as a challenge. She will tide over the crisis but then she has to show confidence on herself and nothing more.

All the best to her!

Dinesh Divekar

From India, Bangalore
Demand of resignation /Forced resignation can be termed offense.
Forced resignation can be termed deemed termination.

While in employment she must capture the evidence of demand of resignation (audio/visual/witness) and keep it safely for use at appropriate time in appropriate forum......

Lay off/Retrenchment compensation is to be find in service rules and conditions...........
An able Labor Law Consultant/Service matters lawyer can help you to understand.

The designation alone does not decide a person shall be covered as 'Employee' as in (Name of the state) Shops and Commercial Establishments Act,'Workman' as in ID Act...............

Your able Labor Law Consultant/Service matters lawyer may ask a set of structured questions and may opine that she shall be covered...........

If she separates she may get compensation as in service conditions applicable to her and stated in e.g. appointment letter,HR policy/Service Rules and Regulations referred to /mentioned in appointment letter/corrigendum etc... ,notice pay,Gratuity,Bonus etc as per her eligibility..........

She must not resign with immediate effect and should tender notice of resignation with full notice period applicable to her..........

She can decide after understanding the merits,remedies from her lawyer if she should mention/or not in notice of resignation that on dated........Mr/Ms...........asked her to submit resignation .........

It shall be appropriate to firm up her next venture in a better organization at a better position with better remuneration....

From India, Chandigarh
Thank You Mr. Dinesh Divekar for your detailed response. Also thanks to DDOABA for your hints.

Yes, she is mentally upset to come out of an environment where she had settled for over 10 years. Moreover, it was her expectation to receive a hefty compensation (say around 8-10 lakhs) as like her factory workers who were sent out during migration of their factory from its last location to present one. Ofcourse, they were members of an Union which got them that benefits but my wife, being a senior management staff should not have expected that much.

As per her company's last revision increment papers, they are ready to offer her 3 months basic + gratuity etc. Her employers had not announced any such VRS Scheme now but are sending out in batches the employees of previous employer.

She is worried because at the age of 43 (though with 20 years of total experience which includes present 10+ years) whether she may be able to get a new job. For your kind info, all major players like Nokia, Foxconn have closed doors evicting around 10,000+ employees. Renault Nissan had sent out 200 employees. Recession is all around in Chennai now. All these youngsters are running from pillar to post to get a job. Can she compete with these freshers/youngsters?

As you rightly said, financial commitments towards our sons' education (in lakhs per annum) & EMI's for my 2 properties (20K per month) makes us both a bit worried. Hence, she is upset.

I pray the Almighty to grant HIS courtesy so that she gets a good job with reasonable salary to reduce our burden. We have no big expectations or the same/better salary than the last drawn one. Let us hope for the best.

I can well understand the reality & better will advise her to submit her papers & get settled.

Best regards & happy new year...!

S. Mani 9840457141

From India, Bangalore
Dear Mani,

Members have provided appropriate remarks and advises in the present circumstances. What is required now is cool yourselves, plan and pool your resources with the backing of settlement forthcoming. With a prudent financial planning you can get over the threat facing you coupled with drastic cut in your expenses, you may have to resort to some sacrifices though temporarily to manage within your means. However world is not over as yet. You can always take a new job, howsoever the remuneration it could be. What is required now for you two is 'a hope' for a reasonable future. I don't think you'll face serious problems provided she gets a job immediately using her experience. Job market is open for both freshers as well as experienced. Imagine there is only appx. 20 : 80 (freshers vs experienced), it may appear to you as if more freshers are getting employed compared to experienced seeking reemployment that's all. Use the Net for posting your CV and apply to suitable vacancies appearing in the news papers. Definitely your efforts will bear fruits. Don't worry be happy a bright future beckons you two. If necessary approach the lender (bankers) to reschedule your EMIs to suit your convenience, sure they'll help you out

All the best.

From India, Bangalore
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