Umakanthan53
Labour Law & Hr Consultant

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Dear sir, I work in a corporate cultured company having operations pan india.
In 2015 they started operations in Delhi and all of a sudden they verbally saying that they are going to close in February month and asking for putting resignation.
My questions are :
1. What should we do.. And what is the best method to get the best possible renumeration..
Should we resign or wait company to put notice to us in written.
2. If my joining is of nov. 2015, am I entitled to any gratuity as of now?
3. If company terminated us, will we get only extra salary of 1 month or on closing they have to pay some extra.

Dear Harish Chander,
Would have been better had you furnished the particulars as to what type of establishment is your Company's Delhi operations and the total no. of employees in that as well as proposed to be rendered jobless and the overall employees strength in the entire company. This information would be useful in deciding whether the company can resort to retrenchment on its own or to obtain prior permission from the Government.
Retrenchment means the termination of the services of any employee having completed 240 days of service by the employer for whatever reason other than voluntary retirement, retirement on attaining the age of superannuation, non renewal of contract, dismissal on the ground of misconduct or termination on the ground of continued ill health.
In case of retrenchment, the employer has to pay retrenchment compensation @ 15 days average wages last drawn for every year of completed service in the organization plus one month's notice salary in lieu of notice or by giving a notice accordingly. That apart, the employer has to get prior permission from the appropriate Govt, if the total no of workmen happens to be 100 or more in the preceding 12 months period. This is applicable only to those employees falling within the definition of "workman" under the ID Act,1947
I think that that's why you are asked to resign on your own in which case you will not get anything other than statutory gratuity that too only if you are qualified.
THEREFORE,
1) Do not resign at any cost
2) To be eligible for gratuity under the PG Act,1972, prior to the date of your actual termination, you ought to have rendered a minimum of 4 years and 240 days of continuous service in the establishment
3) As explained supra.
It is better that all the employees of the Delhi Unit approach the State Labor Commissioner whose intervention would be beneficial to the employees. It is not necessary that you should wait till your employer initiates any action in this regard and you can raise an industrial dispute under the apprehension theory.

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