Case Details: My company has closed / merged my division with another much bigger division. Reason sited by them. 1) Costs being reduced. 2) No performance by our division. The company is giving us an option 1) Either accept a lower profile job in new division with salary cut or 2) Resign. If a person does not agree to either of the above he is being given a termination letter. The company has retrenched minimum 30% of its staff in all divisions. Also the company had sent a mail around 2 months ago that the amount of notice period to be paid under separation / termination clause of the appointment letter is reduced from 3 months to 1 month. My queries: 1) Can a company terminate on these basis. The performance of the company as whole has been low due to recession. The target v/s achmt of our division is much better than the bigger division. But since our division is new...expanded only last year...captial inputs for infrastruture and manpower salaries are high. 2) The company is not giving any written communication regarding reason of closure of division, and options (join at lower level or resign) available to the employee. Only after a person agrees to join at lower level that they get a self declaration signed from employee that due to his performance he is ready to join at a lower level. Under present circumstances it looks like the employees are under-performing and does not give even a slightest hint that the employee is suffering because of closure of division. Is this justified? Can the company be forced to give a written communication? How can this be done? 3) Can a company change the condition of an important clause like notice pay and reduce notice pay to only 1 month. Does it not require a acceptance from the employee also. 4) Does a company have to take approval from some Government body before initiating retrenchment and change in service conditions like notice pay. How can an employee know if the approval has been taken. Thanks and Regards Karma