Facing Forced Resignation After 9.5 Years: Can I Claim Compensation and Benefits?

I am part of an Indian software company for 9.5 years. I am currently out of a project and in the free pool (without a project for the first time in 9.5 years for three months). Now, since I haven't had a project for three months, HR has come into the picture and is asking me to resign. My present role is Project Leader, and I am a permanent employee in this organization.

Since HR is asking me to resign, can I go ahead and ask for the following benefits? If HR denies the following benefits, can I threaten HR that I will file a case against the company? Can I file a case against the company, and will the case have strong value?

Summary of Claims: The company should pay me a total of 11 months' salary (9 months for the completion of 9 years and two months' notice period) apart from Gratuity, Leave Encashment, and a tax waiver for all the below-mentioned payments:

1. The company should pay me two months' salary for the notice period.

2. The company should also pay me compensation of 9 months' salary, which is equivalent to 30 days' pay for each completed year of service as per Industry Policy (As per the Industry policy, employees with more than one year's service, and other than temporary or casual employees, are entitled to compensation equivalent to 30 days' pay for each completed year of service - as per ID Act retrenchment compensation). This policy has been followed in all the industries where employee strength is more than 100.

Yes, you can request a P.F. certificate for membership holding. Salary in lieu of notice is a matter of the appointment letter, so you are eligible for notice payment. For compensation as well, the company should pay as per the company policy and the ID Act for retrenchment compensation. Prior permission by the Government is required for retrenchment, and compensation should be at 15 days' wages (Sec. 25-N) per year.

Your HR cannot simply ask you to resign. On what basis is your HR asking for your resignation? How is your organization faring? The retrenchment, as per the ID Act, is based on the principle of "last come, first go." First, understand that as a team leader, you do not fall under Section 2(s) of the ID Act. You cannot approach the labor court to claim benefits.

Regarding compensation, it is in accordance with your company's rules, regulations, and the terms of your appointment. Consider the prospects of your future and make a well-informed decision.

Please consult a legal adviser before taking any action against your company, as the process is time-consuming and can incur significant costs.

Regards,
G.K. Manjunath, Sr. Manager - HR

Unless it is specified in the company's Rules and Regulations as well as the terms of appointment, you cannot be dismissed like this. I also agree with GK Manjunath in advising you to consult a legal expert. You must provide them with all the facts and figures.

Secondly, if the exit is the only solution, you may ask for the compensation suggested by you—gratuity, retrenchment allowance, leave encashment, and the like. In that case, paying compensation better than what is mentioned in the law is treated well in law.

Hurry up.

Regards.

What Happens if You Refuse to Resign?

If they terminate your services, what compensation will you receive? What have they paid to others?

As well said by Mr. Manjunath, you are under the purview of the ID Act to claim retrenchment compensation as your nature of work and wages are both higher than the stipulated conditions. You cannot go to the labor court. But my personal suggestion is, why are you considering raising a dispute? You have more than 9.5 years of experience and have performed as a project leader; you may find another good opportunity in the software industry. Please consider that these moments of your life are making you emotional, leading you to make decisions based on your heart and feelings rather than intellectually. Let these moments pass, keep calm, and don't pursue any dispute. If you file a case against HR, this case will lie under civil courts and will not be concluded for many years, which will affect your future career.

Just put in your resignation with a pleasant mood and smile, and ask HR to pay your:

- NOTICE PAY
- Gratuity

I am sure they will clear your dues. In the meantime, please search for another opportunity. Good things always happen to good people.

Regards,
Mangesh Wakodkar

Aurangabad

Your case and queries rest on:

1. Your status as an employee! Not your designation, not your salary! One has to be clear if the work you actually carry out conforms to the definition of "workman" as per the Industrial Disputes Act, 1947.

2. What is the total strength of your company category-wise?

3. What are the terms and conditions that bind your mutual relations as regards rights and responsibilities?

4. Have you signed any bonds, like for a minimum length of service, etc.?

One can really address your queries only after studying the above documents.

Subject to the above and general clauses in any appointment letters, the company can terminate your employment if you do not resign. Further, you will be entitled to only what is rightfully due as per the terms and conditions of employment and relevant laws (if applicable).

Also, it is very difficult to explain a "termination" on your resume to any prospective employer. It is relatively less cumbersome to explain why you left earlier employment without securing another employment first. You may be able to even build credible-looking stories to get out of such a predicament!

I would only suggest that you must NEVER let emotions get the better of reason, at least in matters of employment or career!

This response may sound rather cautious, but it is better to be safe than sorry!

Regards,
Samvedan

June 3, 2012

With due respect to all the responses above, I would like to suggest a few steps you may take on your own now.

1. **Review Your Employment/Offer Letter:** Go through your employment/offer letter thoroughly to understand the clauses that can encourage/prevent you from taking any further steps towards demanding your rights. Seek help from an HR/legal expert to understand the terms/clauses if required.

2. **List Terms and Clauses:** Once you are aware of all the terms and clauses, list them down. Include all the things you believe you should receive on termination, such as Gratuity, Salary in Lieu, Compensation, and other benefits.

3. **Discuss with HR:** You can then speak to HR about all the points you noted and discuss mutually/peacefully the treatment for all the points concerning you.

4. **Seek Justification from HR:** If HR does not agree on certain things, ask them to explain/justify with a reason and provide you with a reference for that.

5. **Request Written Confirmation:** You can request to have in writing all such payments that will be part of your termination/full and final settlement package. You may also insist on final amounts and dates when you will receive such amounts.

6. **Escalate to Senior Management:** In the event of being dissatisfied with the discussion, escalate the meeting to senior management who you believe can help resolve this.

7. **Seek Legal Assistance:** If nothing works, seek legal assistance from an external party/legal consultant.

Wishing you all the best.

Regards,
Vimal.

Hi Venkat, you have been associated with the same company for the last 9.5 years. It is really a long time, and you have grown along with the system. Definitely, you have been an asset to the company. Now, my query is, is it only because there is no project for you for the last 3 months that HR is asking you to resign? In that case, how many other people have been asked to resign in your company?

I recently started a new job in the HR department as a Senior HR, but there seems to be an issue. When I joined, the director's secretary questioned the decision to hire me, citing that there were already two candidates for the HR profile. The secretary now seems intent on keeping me idle and demonstrating to the directors that I am of no use.

On the other hand, when an employee left their position in the HR department, I took the initiative to handle the workload. However, the director and his secretary informed my colleague that I shouldn't have taken on the responsibilities of the departing employee. They expressed a preference for their own candidate for the role.

I am being pressured to resign, but is it justified to force someone out of their job? My appointment letter stated a probation period of six months, but is it reasonable to terminate my employment during this time? Previously, I held a permanent position as an Assistant Manager at another company.

They have already started restricting my access to systems to portray me as idle and expedite my departure. How can I protect my job in HR and address this situation?

Thank you for your guidance.

Thank you very much for your valuable inputs and suggestions. Every Indian company wants to get rid of senior people - it is no surprise. I myself screened close to 100 resumes and ensured less experienced individuals were included in the project. However, the company is trying to dismiss employees who have dedicated 9-10 years of their active lives to the company, sacrificing time with family and working day and night, including weekends. Now, the company somehow wants to part ways with these employees because seniors are considered expensive, and they aim to save costs on senior staff. This situation is really hurting me.