Rebranding Dilemma: Can My Employer Legally Pressure Me to Resign Without Compensation?

Hi,

Our company has been rebranded to another company. Consequently, they have asked a few employees to move to the new company. However, I did not accept the offer to relocate. Now, the employer is pressuring me to resign without any compensation. Even though the company still exists with a few other divisions, can any employer legally force me to resign with a notice period during a rebranding process? I have heard that all employees affected by the rebranding are supposed to receive separation pay, but they claim I am not eligible for it. I believe I am entitled to the same benefits. Is my understanding correct? If so, are there any legal provisions that entitle me to receive these benefits?

- vsr

Subhav, if you are a confirmed employee, then you can only request to be accommodated in another division depending on your capabilities. In case it doesn't take place, you can ask for the ERS as the better option; otherwise, resign with notice period package.

Ajay Dua

The provisions of the Industrial Disputes Act are applicable only to workmen or employees who are not in a managerial capacity. Therefore, if you have been performing a managerial job, you will not find recourse under labor laws. Since you have been offered alternative employment, the management's decision may be upheld, considering other factors such as your terms of appointment, years of service, etc.

An employer is not expected to request the resignation of an employee as that would be seen as an unfair practice. However, was the demand for your resignation made in writing? I presume "No." Hence, there is no legal validity to your claim that the employer is pressuring you to resign. If you can substantiate any unfair actions by the employer, you have the right to challenge them.

Regards,

Madhu T.K

Hi Subhav,

It appears to me as if your company is either merging or being taken over by another company, and hence, you are being re-badged. It is quite common for management to consult with employees on the new terms and conditions due to such changes in central management. Under such circumstances, if an employee refuses the transfer, it is automatically implied that they are resigning with immediate effect (either with or without notice, depending on your existing terms and conditions). This is why your existing management is asking you to submit your resignation. Nevertheless, as long as you adhere to the terms of your existing contract, the company must pay you in line with your contract; otherwise, it's a clear breach of your contract. Please ensure you have checked all the relevant company policies.

The important thing here is for you to understand the protection of your terms and conditions in such transfers. The discrepancy in separation pay between your colleagues and yourself seems odd. Have your colleagues also rejected the re-badging (transfer) and still received separation pay?

I am happy to consider your comments.

HR Practitioner.

Dear Subbav, ".....is rebadged to another company. Hence, they asked a few employees to move to the new company. But I did not accept the offer to move. So, the employer is forcing me to resign without any compensation....."

It appears to me that it is NOT A MERGER or AMALGAMATION, but rather a closing down (maybe through outright sale to another company) and to have the swapping of pending orders on hand or some such things your company is trying to give a picture of a merger. If I'm right, then you will be entitled to retrenchment compensation, which might be a handsome package. It appears your company is trying to obtain resignations to avoid payment of this package (resignation doesn't attract compensation). Please ascertain the facts and accordingly move.

Kumar S. BG.