I have a concern. I am working for a company as a confirmed employee now, but the company is closing the line of business for which I am working. They are asking me to leave. Please advise me on my rights and legal implications that I have. Also, advise me on what compensation and documents I should ask for if I leave.
Thank you.
From India, New Delhi
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Thank you.
From India, New Delhi
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Ask for retrenchment benefits as per industrial disputes act. After receiving it, put an 18(1) settlement sign it and you can leave.
From India, Chennai
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151From India, Chennai
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Retrenchment Provisions Under the Industrial Disputes Act
Retrenchment provisions (Sec 25F or 25N) of the Industrial Disputes Act should not be interpreted as applicable to all categories of employees. They are applicable to workmen as defined in section 2(s) of the Act. Therefore, if an employee is asked to leave the organization, the remedy is not to claim retrenchment benefits and make a settlement as per section 18(1). (Section 18(1) settlement means a bilateral settlement between the workmen and the employer, and I don’t know what will be the relevance of such a settlement in the present case.) Instead, it is important to determine if the employee asked to leave comes under the ID Act. If yes, what are the provisions available in the certified Standing Orders of the company, and then take a call. If the employee comes under the cover of the ID Act, naturally, they will get protection provided they have completed at least one year of service with the company and are not the last employee employed in the same category of employment. Now, confirmation shall take place in 6 months also, and this does not mean that they should be given retrenchment benefits. Therefore, confirmation is not the right status for claiming retrenchment benefits. Even a trainee or a probationer who has been with the company for the last year (having worked for at least 240 days) is eligible to get the compensation. Again, as per the ID Act, it should be the last person employed in the group/category who should be retrenched.
The retrenchment compensation is equal to 15 days' salary for every completed year of service. In addition to this compensation, workmen are entitled to one month's notice or salary in lieu of such notice. In the case of companies employing 100 or more workers, the notice should be 3 months.
Nothing stated above is applicable to an employee who has been working even for years but in a supervisory or managerial capacity with at least one person reporting to them functionally. That means, in the case of an employee vested with managerial powers, the employer need not verify whether this person is the last employed in a similar line or whether they have completed one year of service, etc., but only follow what is written in the appointment order/contract of employment. For such a category of employees, neither the provisions of the ID Act nor the Standing Orders will apply.
At the time of discharge, every employee (whether worker or manager) who has worked at least for five years with the company is entitled to gratuity as per the Payment of Gratuity Act.
A retrenched employee is also entitled to get encashment of leave to their credit and statutory bonus calculated proportionally. The provision of issuing a service certificate is also mandatory, provided that the Standing Orders provide for the same. In some Shops and Commercial Establishments Acts of some states (like that of Kerala), the same has been incorporated as a mandatory requirement.
Regards,
Madhu.T.K
From India, Kannur
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Retrenchment provisions (Sec 25F or 25N) of the Industrial Disputes Act should not be interpreted as applicable to all categories of employees. They are applicable to workmen as defined in section 2(s) of the Act. Therefore, if an employee is asked to leave the organization, the remedy is not to claim retrenchment benefits and make a settlement as per section 18(1). (Section 18(1) settlement means a bilateral settlement between the workmen and the employer, and I don’t know what will be the relevance of such a settlement in the present case.) Instead, it is important to determine if the employee asked to leave comes under the ID Act. If yes, what are the provisions available in the certified Standing Orders of the company, and then take a call. If the employee comes under the cover of the ID Act, naturally, they will get protection provided they have completed at least one year of service with the company and are not the last employee employed in the same category of employment. Now, confirmation shall take place in 6 months also, and this does not mean that they should be given retrenchment benefits. Therefore, confirmation is not the right status for claiming retrenchment benefits. Even a trainee or a probationer who has been with the company for the last year (having worked for at least 240 days) is eligible to get the compensation. Again, as per the ID Act, it should be the last person employed in the group/category who should be retrenched.
The retrenchment compensation is equal to 15 days' salary for every completed year of service. In addition to this compensation, workmen are entitled to one month's notice or salary in lieu of such notice. In the case of companies employing 100 or more workers, the notice should be 3 months.
Nothing stated above is applicable to an employee who has been working even for years but in a supervisory or managerial capacity with at least one person reporting to them functionally. That means, in the case of an employee vested with managerial powers, the employer need not verify whether this person is the last employed in a similar line or whether they have completed one year of service, etc., but only follow what is written in the appointment order/contract of employment. For such a category of employees, neither the provisions of the ID Act nor the Standing Orders will apply.
At the time of discharge, every employee (whether worker or manager) who has worked at least for five years with the company is entitled to gratuity as per the Payment of Gratuity Act.
A retrenched employee is also entitled to get encashment of leave to their credit and statutory bonus calculated proportionally. The provision of issuing a service certificate is also mandatory, provided that the Standing Orders provide for the same. In some Shops and Commercial Establishments Acts of some states (like that of Kerala), the same has been incorporated as a mandatory requirement.
Regards,
Madhu.T.K
From India, Kannur
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Dear Madhu & Stephen,
Thank you for writing back. This company has a reputation for mistreating employees in a very bad way. I was confirmed on Feb 6, 2015, and on Feb 27, 2015, I was asked to end my services due to cost-cutting within the company. Interestingly, people with a similar scope of job are still working with less qualification than me (I have a master's degree in Supply Chain Management).
When I received the confirmation, I planned my future accordingly, such as planning to get married. However, my situation is now very critical as I have no job. If I find a new job, I will have to go through a 6-month probation period and prove myself all over again. Additionally, I will need to search for a new house. This decision has completely disrupted my life.
To add to the challenges, the company is only willing to pay one month of additional salary, but I believe I deserve at least 3 months' worth. Please advise if there is a clause in Indian law that I can utilize in this situation or suggest any other way out.
Thank you.
From India, New Delhi
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Thank you for writing back. This company has a reputation for mistreating employees in a very bad way. I was confirmed on Feb 6, 2015, and on Feb 27, 2015, I was asked to end my services due to cost-cutting within the company. Interestingly, people with a similar scope of job are still working with less qualification than me (I have a master's degree in Supply Chain Management).
When I received the confirmation, I planned my future accordingly, such as planning to get married. However, my situation is now very critical as I have no job. If I find a new job, I will have to go through a 6-month probation period and prove myself all over again. Additionally, I will need to search for a new house. This decision has completely disrupted my life.
To add to the challenges, the company is only willing to pay one month of additional salary, but I believe I deserve at least 3 months' worth. Please advise if there is a clause in Indian law that I can utilize in this situation or suggest any other way out.
Thank you.
From India, New Delhi
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EMPLOYEES' COMPENSATION ACT - IMP- PROVISIONS IN TELUGU VERSION.pdf