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Dear Sir
We are a Media organization with current strength of Approximately 75 (PVT. LTD Company).
We are planing a immediate retrenchment and strength wold be reduced to approx 10.
Please suggest the necessary formalities and what are the compensation rights of the employees apart form the notice pay as per their contract/appointment letter.
Please suggest ASAP.
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Dear friend,

It is better that you give the break-up details of the existing staff strength i.e. workmen, supervisors, managers and the like and the existence of Trade Union, if any. Of course, the total strength being less than 100 ( mind that it should have been so much on an average in the preceeding 12 months period), you can retrench people based on their juniority by giving them one month's notice or one month salary in lieu of notice, retrenchment compensation at the rate of 15 days salary for every year of completed service rendered so far, gratuity if eligible, leave salary for the leave,if any not availed of, bonus for the service rendered during the part of the accounting year. Pl go through Chapter V-A of the I.D Act,1947 for further details.The remaining strength to be at merely 10 people means that it is a drastic down-sizing and therefore requires justifiction and consensus arising out of negotiations with the employees likely to be affected to make the process a smooth one.
This forum is meant to help on hr related issues, which were normally genuine.
Thinking to use knowledge and experience of our experts for such activities , is shameful.
Don't expect to use these person's expertise in such way.
And Please don’t dare to make use of this forum for any unlawful act.
I can't understand what Manhr has said in his reply to the thread. Everyone understands that this forum is meant to help HRs. Who has taken it the other way? What has happened to make it so shameful?
Dear Mr.ManHR,
While appreciating your ethical approach to industrial strife and employers' commitment to the contract of employment, I would like to highlight the fact that no aspect of illegality is involved either in the question or in the possible answers to it. In fact, industrial relations is the product of attitudes, approach and actions of all the stake holders tested on the anvil of appropriateness or inappropriateness and not of rights or wrongs. That's why there are provisions in the Industrial Disputes Act,1947 FOR lay-off, retrenchment and closure SUBJECT to certain conditions. What the "Teaching of Amenophis" says as " A pilot who sees from afar, will not make his boat a wreck" applies well to industrial crises also.
Hello Manhr,
Further to what Umakanthan has responded to HRAL, looks like you haven't read HRAL's posting well & misjudged the intent.
HRAL has clearly asked for "necessary formalities and what are the compensation rights of the employees apart form the notice pay as per their contract/appointment letter"--the key words being APART FROM.
Frankly I would appreciate him/her for keeping the employees' well-being & rights in mind from the very word 'go'.
You have been a member of this Forum since Feb, 2009--I am sure you would have seen many many postings in this very Forum of complaints by employees of being retrenched/fired without any dues being paid OR partially paid.....and here you have a HR who wants to safeguard BOTH the Company's & the employees' interests.
Sometime industries do have to downsize.
That is the way private sector works.
We cannot have PSU type running where the employee claims as a matter of right huge OT,extra privileges like late coming,early departure.
One needs to read about indiscipline in PSUs by unions etc where peons,watchmen and drivers get thousands in only OT.
The tax payer is permanently subsidising AI (Named Only for example)
Private sector will obviously slah down manpower if they have other plans.This off course is not to say that some Private players are also difficult with employees and do not fully respect employees genuinely.
Equally there are employees who abscond,change jobs without intimation or following any process.
Blade cuts both ways.
ideal play ground is an utopian idea and one has to deal with situations as they arise as per law.
Dear ManHr,

You write ManHr without any meaning. You say "This forum is meant to help on hr related issues, which were normally genuine." is

sufficient for any beginner to derive meaning that you are not even student of HR. Your meaning of HR if is to do Welfare, People development etc not the Employee relation then you are committing fundamental mistake in understanding subject of HR. ID Act has provisions of Termination, discharge and Retrenchment, closure, lay off , lock out why? A person likes to remain well , fit and healthy for which he does physical exercises, yoga , gym etc for that he takes body pain and spends time also. Organizations have to be kept always in growth order ultimately by HR and to maintain this at times such legal futuristic steps and discourses support growth and prosperity.Your comments for Shri Umakanthan M are frivolous , baseless and uncalled for.He is a retired Addl Labour Commissioner and very respectable , a polite human being and have very correctly addressed the matter hereabove.

Through this post , I want to request all CiteHR readers and true HR professional to mention Name and designation / Post while we write any post whatsoever. Without identity disclosure there are may such comments that maligns image of HR and objectivity of the forum.


RDS Yadav

Labour Law Adviser

Director-Future Instt Of Engg and Management Technology

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