Retrenchment Dilemma: How to Handle an Employee Requesting a Package Instead of Staying

I had to give some of my employees notice of retrenchment letters. We, as a company, want to downscale. But here is my problem... I gave all of my admin staff the letter and said that we need to retrench three out of the four who are working here. Now the one we wanted to stay came to us and said that she wants the retrenchment package. Can she do it? And what are we supposed to do now? Should we see it as a resignation, or is it still a retrenchment?

Dear,

Naturally, you have to adhere to Sec 25 F of the ID Act. Please consider 30 days' notice pay together with 15 days' salary for every completed year of service.

Rajan Associates
Chennai

She can always volunteer for the retrenchment, but if she has specialist skills that your operations or business objectives need, then you can explain why you need her to stay and why you don't want to retrench her. She cannot force you to retrench her; it is a business decision.

However, if there is one of the 3 employees that does want to stay, then I suggest finding a way to come to a compromise so they can stay and the person that wants to leave goes. Otherwise, you could find yourself with an employee that doesn't actually want to be there, so her performance will be affected, and commitment to the organization will decrease.

Thank you for your replies. None of the employees wants to stay. I can afford to pay the one with the skills more; therefore, she still wants to take the package. Am I allowed to employ someone else?

Dear Cecilia,

It is not known what the nature of the activity of your company is, the number of workmen as defined under the Industrial Disputes Act 1947 employed in it, the categories of employees, and the categories in which you want to downscale. Please furnish the above information for giving my views.