Labour Law & Hr Consultant
Senior Services Manager
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Dear All,
i am working in a manufacturing Pvt Ltd., Co., since last 8 Years As Purchase Executive. Now the co., is running under Loss since last more than 6 months and the salaries also not paying in time and the Management not showing interest to run the business further, and planning to lock out the Co., they asking all employees to give resignation letters individually most of the employees are working since more than 10+ years (nearly about 65 Employees) some of them already left, rest of more than 25 employees are still there, Will you please help us what precaution should take in helping our employees . about salary, PF, Gratuity Bonus, Etc., and also tell us for how many extra month’s salary we can cask for them in this situations.

It is not clear whether the post relates to the establishment in India or abroad. The term " lock-out" used in the query probably means either retrenchment of the employees or closure of the undertaking. In respect of employees above the status of workman, if the company is situated in India, termination of employment at the instance of the employer would involve payment of notice pay as per the appointment orders or the contract of employment as the case be and gratuity if they are eligible; in respect of employees in the cadre of "workman", an additional pack of compensation @15 days last-drawn wages for every year of completed service will have to be paid by the management as retrenchment compensation either in case of retrenchment or closure. I think that to avoid these additional financial commitments, the management insists on resignation. Regarding the peaceful exit of the remaining employees, they can jointly negotiate with the management for a voluntary separation scheme providing for adequate compensation plus timely payment of terminal benefits like gratuity, PF and other dues like unpaid salary, bonus etc and sign a bi-lateral settlement in this regard under the Industrial Disputes Act,1947.
Umakanthan sir,
I think they should talk to the labour commissioner's office in their region and present their petition to protect their interests. It would be good if you could suggest to them step by step process.

Dear Sir,
Thanks for your reply, Sir plz tell me we should ask for only unpaid salary, PF, Bonus, Gratuity ? or is there any rule to get more months salary if in voluntary separation scheme.

Dear Gangadhar,
If the remaining employees are also desirous of resigning at the instance of the management as done by others, they can not get anything other than unpaid salary, bonus, gratuity, cash -value of unavailed portion of E.L directly from the employer in addition to making claim for P.F through him. If the exit is under a mutually agreed VRS, they can get additional compensation, if any as provided for in the scheme. Better make a joint representation first to the management for timely disbursement of salary and other statutory dues and inability on account of mounting losses and bleak business performance are the response, then, make a complaint to the area Conciliation Officer ( Labour Officer/ACL/DCL ) as suggested by Fred. During the course of discussion, the Officer may suggest retrenchment or voluntary retirement scheme as alternatives to the dead-lock and upon your acceptance, he can persuade the management for a settlement accordingly.

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