Facing Pressure to Resign Without Written Notice: How Should My Friend Handle This?

My friend is working in a very renowned corporation in India. Three months ago, he was verbally informed by his seniors, "You have 3 months to search for a job and leave the company." Currently, he is facing pressure from his seniors to resign, or the company will terminate him. A total of 40-50 people have been asked to do the same. Furthermore, he has signed a simple bond on the letterhead stating that if he resigns or is terminated before the due date of October 2009, he has to pay back the entire amount. The company is threatening him that he should resign; otherwise, they will terminate him and proceed with the recovery.

No written notice has been given to him for resigning, and when asked in writing, the company is refusing to provide one.

I need your help with what he and his friends should do.

Being an employer, the company has the right to terminate employees after complying with various provisions of the Industrial Disputes Act. On the other hand, termination without following the provisions, such as seeking prior permission from the government, issuing a written notice to the employees, etc., will be treated as illegal.

In your case, no written communication has been issued, only verbal communication by your 'seniors' is present. The subsequent act of demanding resignation is the result of fear of the aforementioned provisions (Section 25F in the case of companies having 100 employees and 25N in the case of companies having more than 100 employees) of the ID Act. This should also be treated as mass retrenchment.

If you are prepared to fight, you can approach the Labor Officer of the locality for conciliation. In the meantime, obtain an interim injunction from the court. If the labor department intervenes, you can buy time and potentially receive compensation for retrenchment.

If you do not wish to escalate the matter, you can have a direct conversation with your employer and explain the situation thoroughly. Do not base your actions solely on the words of your seniors; the situation may be different at the top level. Therefore, gather all information about the case, including any plans for retrenchment, the possibility of obtaining retrenchment compensation, whether the government has approved the retrenchment, etc. Then decide whether to file a petition against the company.

Regards,

Madhu.T.K

Dear PL,

Could you please clarify if you are considered a workman under the Industrial Disputes Act? Alternatively, kindly provide complete details about your job nature, or indicate whether you are involved in performing supervisory duties of any kind.

Thank you.
AK Malhotra

Dear Madhu sir,

Why do companies generally ask employees to resign instead of terminating them? Please highlight the legal aspect of this.

Regards,
Ashish

It is very simple. Termination is a step or initiative from the employer, and it is to be done following certain formalities mentioned in the Industrial Disputes Act or the Standing Orders of the company. Simply, before terminating an employee, he should be given notice of the intention of the company to terminate him with reasons thereof. Termination for misconduct requires the service of a charge sheet and the conduct of a domestic enquiry, etc. A terminated employee should be paid compensation as prescribed under the ID Act. On the other hand, resignation is purely at the will of the employee concerned, and as such, no such legal formalities are involved in it.

Regards, Madhu.T.K

I was employed as an HR executive in Globus Pvt Limited. I was being totally humiliated and harassed by the General Manager of Human Resources. Due to the General Manager's psychological imbalance and the pressure of handling HR, Admin, and IT departments, he tends to forget things and used to put false blame on me regarding incomplete work. I took this matter to the CEO as well, but nothing worked out. The General Manager of Human Resources issued a termination letter. Could anyone let me know how I can take this matter to the legal authorities or any employment protection act?

I was employed as an HR executive at Globus Pvt. Ltd. I was completely humiliated and harassed by the General Manager of Human Resources. Due to the General Manager's psychological imbalance and the pressure of handling the HR, Admin, and IT departments, he tended to forget things and would falsely blame me for incomplete work. I raised this issue with the CEO as well, but nothing was resolved. Eventually, the General Manager of Human Resources issued a termination letter. Can anyone advise me on how to escalate this matter to the appropriate legal authority or employment protection act?