How Should We Handle Our Company's Relocation to Bangalore Without Extra Benefits?

I am currently working for BOMBAY RAYON FASHION LIMITED, and we have been given a Circular Notice that the Company will be shifting from Mumbai to Bangalore. Below is the notice:

QUOTE

CIRCULAR

Forwarding herewith communication from the Management about shifting of Garment Division Operations from Mumbai to Bangalore.

Dear All,

In view of the current business scenario, the management deems it necessary to consolidate and restructure the Garment Business in order to effectively utilize all the resources at its disposal and make the organization lean and responsive to the business needs. With this objective in mind, the management has decided to relocate all the garment-related operations from Mumbai to Bangalore with effect from 1 April 2013.

This step is aimed at better coordination with manufacturing units, improved logistic support, avoidance of duplication of activities, and improvement in profitability through conservation of margins. Needless to say, your whole-hearted participation in this initiative will pave its success. Management is fully aware that all of you will require sufficient time to get ready to move to Bangalore and manage personal issues emerging out of this relocation. Hence this communication to make you all aware of this impending step initiated by the management.

It will be the prime objective of the management to facilitate this transition with the least possible disturbance to all of you and take every care towards proper settlement at Bangalore. However, it will not be possible for the management to make any exceptions. Therefore, all the departments viz. Marketing, Merchandising, Designing and Sampling, and Sourcing will move to Bangalore and commence operations from 1 April 2013.

All the concerned employees are requested to convey their consent to the HR department immediately to enable making arrangements. Management would like the maximum number of employees to participate in this growth initiative and advance their career prospects. However, the Management would not be able to accommodate those employees who do not wish to relocate to Bangalore for any reasons.

Please feel free to discuss your issues with respective department heads who will guide you in this regard.

Thanks,

Uday C. Mogre

Executive Director - Corporate.

UNQUOTE

Now, there are a few employees whom the company is not shifting. When we asked for the settlement, they said you will get your salary, leave pay, and bonus (if it falls under CTC).

As per our appointment letter, it states the company can relocate any employee to any place, and if an employee needs to quit, they need to provide 1-month notice. If the company asks any employee to quit, then the company will pay 1-month advance salary.

In the above case, the company says that the above letter is a notice letter (which I fail to understand). Is it an invitation letter for Bangalore or a notice letter?

They will not pay anything extra for the employees who are not shifting to Bangalore.

Also, if I agree to shift to Bangalore, they are not providing any salary hike and no facility for accommodation.

I am seeking good guidance on how to deal with this scenario.

Please help. What should be our steps as we are almost 20 to 25 personnel who are left out, and a few company heads and those who are their favorites are being called to Bangalore and given a raise and accommodation.

Please help!

As per your query, I suggest the following:

The notice states that there is a growth opportunity for employees and career enhancement if they relocate to Bangalore. The Company will also assist them in the relocation process. However, for employees who do not wish to relocate, the Company will not provide any financial assistance. This seems strange and contradictory to the clause mentioned in the appointment letter.

According to the process, the Company should give you a one-month notice period. If the Company wants you to leave, then they should pay you one month's salary along with any applicable dues.

In this scenario, you can either approach your HR or your CEO and address your concerns in writing as well as verbally. Attempt to resolve the issue amicably rather than resorting to legal action or arbitration.

Thank you.

Understanding Relocation and Notice Period

Relocation of the company and the Notice Period clause applicable to employment are two different things that need to be understood first. Before going further, I request you to go through the "Circular Notice" carefully and consider the present situation and the best future expectations of your company/management as presented in it.

Secondly, Mr. Ankit, if the company has decided to shift to Bangalore, it means they are shifting their business, which is not an easy decision. They must have seen some growth and future potential as stated in the Circular, or perhaps they took this step due to unfavorable conditions (hidden truth) that may have raised questions regarding survival. Therefore, as an employee, you need to understand the situation as well.

The Employer/Company is asking you to relocate to the new place where they will continue their services/business, but they are not actually transferring you (or any employee), as referred to in the employment/appointment letter where an employee deserves some benefits under the transfer of employment. It is important to understand that shifting the business or relocating due to the reasons mentioned earlier falls under critical circumstances (such as unfavorable conditions or seeking better opportunities elsewhere) where they could have opted for the "retrenchment procedure" but instead have requested employees to support and accept the conditions and relocate with them, which, in my opinion, is a positive approach. They have assured to take care of everything related to the relocation of employees with full support, which demonstrates good management practices.

While it may be a new start in a new location for you and other employees, it is not an easy transition. However, you (employees) need to consider that if the company had opted for the "retrenchment procedure," resulting in job loss compensated by the employer per the terms of the appointment letter, it would have been a more challenging and critical situation than relocation.

I urge you to revisit the "Circular Notice" where the company expresses its desire to retain current employees and continue with them for a promising future at a new location. Would you deny a good career opportunity and growth with a new employer if presented with one? It is likely you would accept immediately and tender your resignation. In this case, your company has not resorted to the retrenchment procedure but is seeking support and cooperation from its employees.

Consider all the conditions, situations, and factors presented here, and reconsider your objections/demands for a salary hike and other relocation facilities (which I acknowledge as valid but worth reevaluating). Decide on your next steps and where you intend to go.

Regards

Relocation Notice and Employee Negotiation

The circular addresses the notice regarding relocation. It is clearly stated that all employees will be relocated to Bangalore. Those willing to move will retain their jobs, while those unwilling to relocate will not. This is an opportunity for those not interested in moving from Mumbai to come together and negotiate the best possible outcome. The company has explicitly expressed its intention to streamline operations and enhance responsiveness. Therefore, it is advisable for all employees to unite and negotiate for the most favorable severance package.

Employees categorized as 'workmen' should demand compensation equivalent to at least the 'retrenchment compensation,' while others should also seek additional benefits such as 15 days' pay for each year of completed service.

Regards,
KK

Presently, I am working in a limited company, and my tenure with this company is approximately 7 years. Now, suddenly, our top management has conveyed to our team that to lower the headcount, they are shifting us to an outsourced company. Our payroll will be with the new company, but we will be coming, sitting, and doing the job for the old company only, and that too on the existing packages. They gave verbal assurance that all the policies will remain the same. However, I have doubts and queries about why they might be doing this. What conclusions should we draw from this? We have to resign from last month's last working day and will be offered the joining letter effective from the 1st of March 2013. Should we ask if we are eligible for EL encashment as well? Our notice period was two months. The company is saying that our Gratuity, PF, etc., will be paid as F&F, whereas our reimbursement component facility (car lease, mediclaim, medical insurance floater) will not continue there in the new payroll (mainly effective for tax benefits).

Kindly help.

Thanks & regards,
A D Bishnoi

Yes, our approach will be in a decent and well-cultured manner, as we too want things to settle peacefully. However, the management should not take things for granted. In our case, the company is favoring employees who are favorites of the GM, providing salary hikes, accommodation help, and assistance with children's school admissions. When we express our interest in similar opportunities, there is no response from them. What should we understand from this? All we need is a fair chance at a decent life. I hope I am not asking for too much.

Thanks for your time! I appreciate it, buddy!

How could a circular be considered a "NOTICE"? Please guide me. Here, we are ready to come to Bangalore and will do our best to enhance the business as requested by management. Then why is management choosing selected people only, and not everyone? Why is management providing salary hikes and accommodation help (like flats in L/L where the company will pay the deposit amount and monthly rental), and then expecting us to keep quiet? Why this two-way behavior? What irritates me is that management should be fair to all. At least we expect this. If not, then what are we supposed to do? Sit back and accept whatever they claim is right.

I understand it's a complete management decision regarding whom to take to Bangalore and whom not to. In that case, they should not have sent the circular to everyone. All we need is a fair judgment.

Hope you understand, sir.

Best Regards,
Devendra Mishra

Dear Mishra & Dev, With the unfolding of new facts, the nature of the case is changing. Yes, you are right; there is a discriminatory approach in giving benefits. From the letter, it appears that the shift to Bangalore is only a ploy to get rid of the people in Mumbai, which explains the motive behind the move. When you are willing to relocate to Bangalore, there is no reason why the benefits given to one group of employees should be denied to others. You definitely have a case in this regard and can approach the labor authorities for unfair labor practices. But I still maintain the view that the Circular amounts to a Notice as referred to earlier.

Regards,