Worried About Job Security After Probation? What Legal Steps Can I Take If My Branch Closes?

I am handling all HR and admin activities (Branch) in an IT Company. I have some problems regarding my job security. Here, I changed my job just 3 months ago. As per our company policy, there is a 3-month probation period, which I have completed. However, I have not yet received a confirmation letter from the employer. From my point of view, they may want to close this branch. In this case, they may terminate me on the spot. What legal actions can I take against the employer in this situation? If they do not pay my salary, what are my options?

I kindly request you to provide me with some solutions for my benefit.

Regards,
Hardik

As you mentioned, they might terminate you on account of the branch closing. I would suggest you speak with your reporting boss to clarify what your role will be in the organization after the branch closure. Additionally, how was your performance during the probation period to become a confirmed employee? There is a probation appraisal process that will be assessed by your reporting boss. Depending on the feedback provided on your appraisal sheet, you will either be confirmed or your probation may be extended. In rare cases, termination may occur.

In the event they decide to terminate you, it will not be termed as termination; they might refer to it as a lay-off due to job profile redundancy. In such a situation, both parties will pay each other as per the terms agreed upon in the appointment letter.

For more details, please feel free to get in touch at [Email Removed For Privacy Reasons].

Regards,
Dev

Thank you for your positive reply. In this case, I am not facing this problem, but all employees of the branch are having the same issue, and all employees have completed their probation period. All the activities of the branch are handled by me, and our branch started four months ago.

One more thing, the company is not giving a proper answer regarding the confirmation letter for all employees of the branch. Also, they are not providing any extension answer regarding the probation period.

Potential Branch Closure Concerns

From my point of view, the branch may be shut down. In this case, two occurrences are mentioned below:

1. If our company shuts down this branch and terminates all employees of the branch, what legal action can we take against the company?

2. If our company shuts down this branch and terminates all employees of the branch without giving the last month's salary to all employees, what legal action can we take against the company?

Legal Obligations for Employer Shutdown

If you go by the I.D. Law and model standing order law, there is a clause that states that in the event the employer plans to shut down its business area or manufacturing setup, it needs to inform the employees 3 months in advance or make payments accordingly. You can note this point and approach the labor court.

Employee Status and Legal Recourse

In your branch, are there any confirmed employees, or are you all on probation? Whatever the case may be, you can raise the above point and approach the labor court, stating that the employer has not given you sufficient time to search for another job and no written communication had been provided before closing the branch.

Dear Hardik,

Firstly, please confirm with me where this proposal for closure originated. Have you received this message from Management? (Kindly do not accept rumors from employees/staff without verification.)

Secondly, how many employees are currently working in your company?

Thirdly, is there any union present there?

If there is no union, but the company you are working for is considered a financially distressed unit, they may not close the company within four months. Instead, they will likely attempt to improve the company's revenue for at least 2-3 years. In case it is a severely distressed unit, employers cannot terminate all employees at once.

The first step should be to provide lay-off notices, followed by retrenching excess manpower department-wise with a notice period or notice pay. Terminating all employees simultaneously is not permissible. In such a scenario, there should be settlements for employees, and all these steps must be followed. If the employer declares insolvency, settling with employees should take precedence over repaying bank loans. If these measures are not taken, employees have the option to take legal action against the employers, and the judgment will likely favor the employees.

As an HR professional, please handle the situation carefully. If you can resolve the issue, great. Otherwise, clarify your role with your superiors and act accordingly. This is an opportunity to learn new tasks. Wishing you all the best for your future endeavors.

Regards,
Ramkishore

They will not terminate you on the spot. Either they will look for an alternative for you within the same company, issue a notice for you to search for another job, or compensate for your loss by calculating the notice period as per the company norms.

Thank you for your valuable reply. I have not received any proposal for closure from MGT. However, they are not providing a proper response about anything. In our branch, less than 10 employees are working, and there is no union.

They also pay a salary on the 20th of every month. We have already discussed this with the top management, but they mentioned that it is not possible to pay on or before the 10th of every month. Additionally, the HR from the head office informed us about this salary date at the time of joining.

Regards,
Hardik

If an employer terminates an employee without notification, what kind of case can be filed against the employer?

Regards,
Rajeev
HR

Legal Actions for Unnotified Termination

If an employer terminates an employee without notification, what kind of case can be filed against the employer?

Rajeev