Hi my contract got terminated in July due to COVID impacted job redundancy. The company is not offering any severance package. Instead, they are asking employees to resign. When I refused since this is a case of job redundancy. They terminated my contract because as per the clause 3 in my contract either party could give 2 months notice or 2 months' salary. So I was given 2 months' gross salary in the month of July on the day of termination. The reason for the termination provided is the clause.

For my F&F they are giving prorate salary for the month of July, encashment of earned leaves until July and prorate LTA from Apr till July minus tax deduction.

Q1 - shouldn’t they be paying LTA in full for the year or also for the 2 months

Q2 - as per my CTC 20% is variable pay. This is unique to my CTC only and is paid annually. They are refusing to pay my variable pay. Should it be paid for full year or until prorate July or also for the 2 months?

When I had joined this company in Oct 2017 they had paid prorate of my annual variable pay for 5 months 2 days for the year 2017-2018.

Q3 - there is also a fixed bonus in my CTC which is paid at the end of the year. The same is also not being paid.

Q4- What should I do?

From India, Gurgaon

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