Facing Retrenchment: Should I Resign or Wait for Termination for Better Benefits?

Hello, I have completed 4 years, 8 months, and 18 days in my office. Now, for the purpose of cost-cutting, they want me to resign. The company is ready to pay one month's salary. My question is, can I resign or ask the company to terminate me? Which option would provide me with the maximum benefit and be good for me in the future?

Please answer ASAP.

Regards,
Manny

If the company gives you one month's notice with gratuity for the 5 years, then you can be relieved over there; otherwise, you should ask the company to terminate you with the proper reason for your termination in your relieving letter. If the company provides the reason/explanation for relieving your service, in that case, you can also approach the labor commissioner. However, peaceful relieving is good for your future assignments and avoids wasting your time on further litigation.

Regards,
Rakesh Gandhi

What are the conditions precedent to retrenchment of workmen?

No workman employed in any industry who has been in continuous service for not less than one year under an employer can be retrenched by that employer until:

(a) The workman has to be given one month's notice in writing indicating the reasons for retrenchment or the workman has to be paid in lieu of such notice, wages for the period of the notice.

(b) The workman has to be paid, at the time of retrenchment, compensation which is equivalent to fifteen days' average pay (for every completed year of continuous service) or any part thereof in excess of six months; and

(c) Notice in the prescribed manner is to be served on the appropriate Government (or such authority as may be specified by the appropriate Government by notification in the Official Gazette).

REF: FREQUENTLY ASKED QUESTIONS (FAQs)

Considerations for Resignation and Gratuity

Termination is not a good term to use when considering your future career perspective. You are entitled to gratuity, and it is important not to forfeit that amount for any reason. Please provide one month's notice along with your gratuity request. Make sure to receive the gratuity amount before submitting your resignation letter. You can also request a three-month notice period, even if the clause states one month.