virendra s.k.
Sir, Can I get both Severance pay and benefits of balance period of service against termination If so what are calculations In addition to gratuity and of
From India, Mumbai
Loginmiraclelogistics & Management)


Hi Virendra,
Inf.given is unsufficient to suggest our views. What's status of your organisation? Are you a workman under ID Act. Severance means, is't termination/dismissal or what, under what circumstances. How many years of service you rendered? That apart, there is no chance of 'payment of benefits of balance period of service' under any condition.

From India, Bangalore
virendra s.k.
I am working in private limited company at Mumbai office as a commercial executive
Their plant is in Gujarat
M working since last 38 years and 4 years are remaining for 60 years
They had verbally informed not to come from 2nd may 2019 as they told closing Mumbai office
But it does not look.
At present m only victim
What benefits are available to me
Please advise

From India, Mumbai

Hi Virendra,
It's shocking to see sacking after 38 yrs of service just by an oral info. Are you a single person in Mumbai office? You should try to get your separation order in writing based on which follow up action can be taken.
It appears, may be your office is regd. under Shops & Commercial Estt.Act. You are indeed eligible to receive terminal benefits including EPF, gratuity & encashment of leave, other compensation. You should immediately consult an advocate practising in labour laws.

From India, Bangalore
virendra s.k.
Thanks for your kind advise.
Currently, I am only the person who has been informed, verbally.
will seek separation order from them in writing.
they says they are winding up operations at mumbai (corporate)office and
switching to regd. office and plant at gujarat. but it does not seems to be.
They are regd. under shops and establishments act, but now says they have
discontinued, which don't believe, since still next 2 to 3 months, operations
will carry at this mumbai office.
noted the benefits - but can you please describe the other compensations in details
in addition to epf, gratuity and encashment of leaves so that i can claim accordingly.
can i get severance pay in addition too.
m searching best lawyers but still not succeed. do anyone have best contacts in mumbai.

From India, Mumbai

Pl.go thru' the following relevant provisions extracted from the -
The Bombay Shops and Establishments Act, 1948 BOMBAY ACT NO. LXXIX OF 1948 [11th January 1948]..
бб.Notice of termination of service:
No employer shall dispense with the services of an employee who has been in his continuous employment –
(a) for not less than a year, without giving such person at least thirty days' notice in writing, of wages in lieu of such notice:
(b) for less than a year but more than three months, without giving such person at least fourteen days' notice in writing, or wages in lieu of such notice:
Provided that, such notice shall not be necessary where the services of such employees are dispensed with for misconduct.
[Explanation.-For the purposes of this section, "misconduct" shall include-
(a) absence from service without notice in writing or without sufficient reasons for seven days or more;
(b) going on or abetting a strike in contravention of any law for the time being in force; and
(c) causing damage to the property of his employer.
NOTE S.66 - Discharge of an employee without notice –
Relief of reinstatement and back wages -Termination of an employee without notice is bad in law and therefore workman entitled to reinstatement and continuity of service with back wages.
N.L. Mehta Cinema Ent. P. Ltd, v. Vijay G. Shivgan &. Ors. 1988 I C.L.R. 416 (Bom.H.C.)...
In so far as the specific relief in your case has to be analysed in the light of pertinent case laws comparable to similar circumstances. However much would depend on the docs/ termination notice which is yet to come from the employer side. In the absence of any valid notice you will have strong case for seeking remedy.

From India, Bangalore
virendra s.k.
It seems they have surrender licence of Bombay shops and establishments before few days
But it’s not logic because still office activities are going on same place
But said property transferred to directors personal name
So I should continue office till they issue any written or settlement offer
Although they said verbally not to attend office from tomorrow
Also advise severance pay is an addition to normal gratuity n termination benefits or
It is optional to termination benefits

From India, Mumbai

Yes, unless & until they issue an official communication in writing the severance doesn't take effect. May be they have initiated action to change/shift their Gujarat by closing Mumbai office. What's not clear why they should single out you for termination? How many others in Mumbai office, what they're going to do about them?
Ascertain whether they have got the approval of govt. to close down this office. It's mandatory to obtain NOC to close from GST authorities also to do so.
Termination/severance pay is not different, may be 'Termination compensation' which is based on past service/future salary whichever is lower and "severance notice pay" (one or two month's pay) are appropriate description.
Gratuity is separate which is common for any exiting employee and the formula is as per gratuity act. Leave encashment against surrender of EL/PL days at your credit is due.
Also ensure your EPF & EPS contribution is fully remitted and secured.
How about ESI, did they remit the contribution promptly. Of course you don't get any compensation from this, but benefit period might help for a few months post exit.
Also examine/explore whether you'll have option of migrating to their plant in Gujarat, if you wish to shift which is possibly covered under Factories Act & ID act. This might help you to have better bargaining by virtue of provisions under the ID act.

From India, Bangalore
virendra s.k.
Thanks for your kind advises.
It means I should not leave the job till they gives official communication.
At present, no work for me, just coming, reading the mails and going back.
(As per their verbal information, 30th April, was my last working day)
But, they have not called for any negotiation.
Still, they have not disconnected my pc.
Verbally they says near or future, they will close activities at this mumbai office and will
handover to new partner at gujarat.
Currently, M the only victim and they says verbally, gradually others may also go (but no perfection)
BUT they may keep some staffs for their handling of personal accounts.
This office is now transferred to personal name of director FROM company's name.
About ESI, i was covered under keyman policy alongwith other 4 members in mumbai but at last month
(during renewl) they did not include my name in the same.
Termination compensation' which is based on past service/future salary whichever is lower and "severance notice pay" (one or two month's pay) are appropriate description.
Please find the text from search :
The severance pay offered is typically one to two weeks for every year worked but can be more. ... The general practice is to try to get four weeks of severance pay for each year worked. Middle managers and executives usually receive a higher amount. For instance, some executives may receive pay for more than a year.
Therefore, M little bit confused whether we can ask for BOTH termination compensation and
severance pay. OR either or applicable. Please advise.

From India, Mumbai

It's not desirable to leave just only on 'oral info.' It's in your own interest you should have a proper official communication especially to claim the Full & Final settlement. I presume they are not talking to you on any follow up action. Was there any mails to you in this respect ?Let's see what happens.
You have to plan for health insurance in case ultimately you are forced to leave, to take care of any emergency.
Re:Packages-So far as I know there is no Act (except ID act) which deals comprehensively as to what should be the package like in instances of termination/ severance due to closure of establishment. Again no quantum has been prescribed. It would depend on the bargaining power of the parties and the willingness to compensate convincingly on the part of employer. I have been noticing many employers pressurising their employees 'to resign' rather than face 'termination'. In Indian condition, most of employer-employees tie-up is dealt under the 'law of contract' which is common for every dispute, rather than employees' centric labour laws. Which means an employee's service can be terminated as per the clauses contained in the appointment letter which generally provide for 'terminable within 1/2 months notice on either side or in lieu thereof with payment of notice pay'. Some terms contains simply "..your services can be terminated at any time without assigning any reason or compensation..."
I have not come across anyone's appointment letter or HR policy which quantify what should be the formula for 'termination benefit or severance pay'. Most of officials in the HR profession know severance thru' VRS route by which the package generally seen at "15 days' salary for every year of past service or the sum total of future salary till the superannuation, whichever is lower" . This again is in line with govt./quasi govt. employers. Only very few follow such packages in pvt.sector because of reasons explained above. Since not everybody is willing to take the employers to the court in the matter fearing for receiving "clean" 'experience letter/service certificate' which is crucial for pursuing their future career, most of exiting youth-employees having less no.of years' services used to opt for resignation silently, content with a few months notice pay & a clean relieving letter. This again a fear, in the job market, 'back ground verification' with former employees will play a deciding role in securing alternate job.
May be a handful, who could afford to the cost & time involved, might have reached apex courts in the absence of a comprehensive labour policy law/ act in India addressing 'terminal package' issue.
The packages discussed by you could be seen at best stray cases only which are not commonly followed for all with the backing of sound labour laws. However, at the same time, at very senior levels, hefty payouts are negotiated and settled after consensus reached between the parties.
I hope, so far they have not threatened/asked you to resign. It's likely when they force you to leave you are sure to ask for both. Nothing wrong in it. You are free to demand to safe guard your interest/future. I would suggest, in the circumstances, you should be well prepared for the worst including a legal battle.

From India, Bangalore

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