Compensation For Retrenchment

Hello All,
I wanted to know that in current senario the IT companies are downsizing.
And many employees are asked to leave the job.
I wanted to know that can an employee ask for monetary compensation for the same as it is not due to his poor performance that he has to leave the job rather it is due to company's business not doing well due to global senario.
If the employee can do the same what is the procedure and how much compensation can the employee get from an employer.
Are there any law to save employee's interests in such senario.
Regards,
Reena

Hello,
Does that mean that employer has all the rights to do it at his own will. and there is no law to protect the interest of the employee.
So the IT companies must be safe in handling the retrenchment.
Regards,
Reena

Dear All
Retrenchment process in downsizing is an eventuality.The defentition of "workman" for IT professionals is not tested so far.When the nubers are high and they dont do Managerial Jobs ,just development of Software they can be treated as workmen and ID Act made applicable.In that case they may have to seek Govts permission for retrenchment.
In the scenario of Job availability and easy switchover you will not have Employment Litigation but in the changing environment you will see Litigation coming up eventually and the defentition or workme tested.
At any rate one cannot exclude the application of the Shoops and Establishments Act which also provides for protection for unlawful retrenchment.
With Regards
V.Sounder Rajan

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