Final Settlement While The Company Is Planning To Shutdown - CiteHR
Partner - Risk Management
Cite Contribution
Community Manager
Labour Law Advocate
HIREN JANI (Human Resources In IT)
Executive - Human Resources
+2 Others

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Dear HR fellow professionals,
Can anybody help me with facts on what is the compensation paid to white collar employees by multinationals, when they exit India.
Please share confirmed factual information only.
Thank you in advance for your help.

A german firm had paid 3 months salary without incentive while ramping down. However, it depends on the budget you have. In which state is your office located? Considering that your firm is registered with the Shops and Establishment , please check with your accountant. You will have to fulfil those conditions.
Assuming that you are the HR or the decision maker in the firm, here's a request. Please consider out placing your employees. A continuity in the employment works far better than compensation or any amount of hard cash.
Wish you all the best !

Dear (Cite Contribution),
Thank you that you came forward to suggests my posting.
My group management has already decided to close our office in India. so we cannot retain any employee.
Hence I am looking for professionals advise.

Dear Jeya,
It its MNC, there must be concept of Appointment Letter issued to all regular employees and as per respective clause company needs to adhere. In case of Gratuity eligibility that amount also needs to be paid by Company to all respective eligible employees.

You need to give us more detailed information about the company and the employees. We need to know whether it's a factory, shop, which state, how long have people been working there, how many employees, what is the notice period in appointment letter, etc. Without these information, we can not give you a proper answer.

Hello Jeya
What do you mean by what collar employees? What is their nature of duties i.e managerial, technical, clerical etc.What is the nature of your industry? Is it a commercial establishment or factory? without these details, it may not be possible to give a proper reply.

I am afraid that there is no legal definition of "white collar employee".
If they are considered as workmen (irrespective of their designation/ salary) they will attract the provisions of Industrial Disputes Act.
Retrenchment compensation is to be paid for 15 days salary for each completed year of service along with 1 months pay (mostly probably). Other dues like gratuity, PF etc. has to be cleared.
For more information, check my blog

Dear Jeya,
With outplacement, I meant, getting them hired by other employers. In case you don't have the bandwidth to do so, you might consider consultants who can help out.
I echo Saswata Banerjee, a better view to your sector and strength will help us respond more accurately.

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