Can I Claim My 3-Month Notice Pay After Sudden Branch Closure by My Company?

Dear All,

I am in a very peculiar situation. I worked with a Kolkata-based distribution company as a Senior Executive in Rajasthan from November 2008 until March 31, 2009. All of a sudden, on March 23, my Executive Director sends me an email stating that the company is not interested in continuing with the branch and therefore needs to close down the branch office. I was under the impression that, as per my offer letter from the company, I needed to give a 3-month notice in writing if I were to leave the company, and so the same rule should apply for the company as well. However, my HR department now informs me that, according to company policy, the company is not obligated to pay me anything.

Please help me understand if there is a possibility to claim the 3-month notice pay as well as my salary for March from the company. If so, what steps do I need to take for that?

Regards,
Aditya

Dear,

If a company is refusing to pay you, then you have to file a case under the Payment of Wages Act with labor authorities.

Thanks,
JS Malik

Dear Aditya,

Does your offer letter mention the clause of 3 months' notice from either side in case of separation? If yes, the company is legally bound to pay your dues. Please seek legal advice at the earliest.

Regards

In the offer letter, it's not mentioned for either side; rather, it's just stated that I would have to give 3 months' notice or 3 months' salary in lieu of notice if I leave the organization. However, if the company initiates a separation, I want to know what happens.

Thanks, Sir, for your support. I really need advice like yours as I am without a job due to this company's sudden decision. They closed everything with just a seven-day notice. I don't think by any means that this is acceptable by the court of law.

Regards,
Aditya

You should tell the company that you will initiate legal action against them as suggested by Mr. Malik. Please don't let it go without your hard-earned money.

Thanks

Dear Aditya,

It seems that in this case, you have been tricked by your company. The separation notice period cannot be from one side only, and if that is the case, then you should not have accepted the letter in the first place. I don't know whether it's your lack of knowledge or improper guidance, but whatever the case may be, you are in a spot of bother. As far as my legal knowledge goes, your only remedy in such a situation is to file a legal suit against the company and claim your money. However, I cannot guarantee you that the outcome will be in your favor.

All the best in your efforts.

Regards

Hi Aditya,

It's shocking to hear that there are such companies as well. Go and speak to the concerned person in your office. Maybe he would be dealing with some debts or having no money to pay you. Ask him calmly and, importantly, inquire until when he can give you your money. Explain that you need it urgently and ensure to get it in writing before considering legal action. It's often better to resolve things calmly rather than escalate to chaos and the burden of legal procedures.

However, if you feel that a peaceful resolution is unlikely, consider seeking assistance under the welfare act for delayed salary with a legal consultant. The choice is in your hands, buddy, as we are often our best judges. Here's a small piece of advice or suggestion: never let these negative things affect your future. Transform your negative experiences into a strong pillar for making positive decisions in the future.

Wishing you lots of luck and believe in yourself. No talent, along with hard and smart work, goes in vain. It always helps to stay positive.

Cheers,
Rashmi Bhalerao

Hi Aditya,

I am sorry to hear that, but there's no need to be bothered. You should once again approach them calmly and ask for your salary before taking legal action. Then, based on the situation, you can act accordingly. Malik sir is offering good advice in this matter.

I wish you all the best in the future and hope you will not face these kinds of situations.

Regards,
Hemadri.

There are a few questions to be answered here:

1. I am sure your wages are above Rs 1600. Then you are not covered under the Payment of Wages Act (refer to sec 1(6) of the act).
2. Do you have a clause in the appointment letter or any document given by the company specifying "the company has to give 3 months' notice or the notice pay in lieu of the same"? If yes, you can proceed with legal action. You are sure to win. If "No," then your case is weak, but seeking legal advice is still a good option as the offer letter and other documents can be further scrutinized for loopholes.
3. Can you produce proof of the company paying notice pay to any other employees prior to this? If yes, you have a good case, but you must be able to prove that the pay was given as notice pay itself. You may go for a direct High Court writ petition.

Well, friends, I don't advise you for legal course of action offhand. First, study your appointment letter. For all probability, you are under a probation period, which normally does not warrant a company to give a notice period before separation. If at all you are not on probation, then discuss your case with a learned labor consultant and send a polite but stern letter to your company seeking financial reimbursement or reinstatement of your job, maybe in some other location. In any case, you should have provisions to sustain a long-drawn legal battle between the organization and an individual.

So, friends, weigh your options carefully before doing anything.

Ajit is right. Let legal action be your last choice. But let me tell you an open secret - threatening to take legal action and naming the higher authorities as the first respondents in your case always works. :) Tell them that if you pursue legal action, they will find themselves in a courtroom for a significant number of years.

Dear Aditya,

By now, you have received many suggestions from your CiteHR colleagues. What I suggest is to think and act in a realistic manner. Do you need a new job or do you need that three months' salary? Ponder on it! Do not waste your time and money on legal action; alternatively, strive for a good job and settle down quickly, so that you can lead your life in a better way. Consider this, and you will surely find a solution. Keep rocking.

Dear Aditya,

In case of separation, the Company needs to pay the individual his/her dues unless there is a legitimate recovery. As you joined on Nov 8, 2008, it is important to read the clause related to separation during the probation period in the appointment letter.

Regards,
Manoj Koli