Facing Layoff After Just 2 Months: Can I Take Legal Action Without a Notice?

I joined this organization on 24th October 2013, and now on 11th December 2013, the project is about to close, and employment shall stand terminated after 31st December 2013. So I haven't even been there for 2 months, and they are laying us off. The November month's salary has not been paid to date.

Legal Obligations and Actions

I wanted to know if the company is liable to give one month's notice in advance in this case. What legal action can I take against the employer? I don't have an appointment letter, only an offer letter. Any advice from experts?

Thank you,

Mohsin Shaikh

Understanding Your Employment Contract

What does your employment contract or joining letter say? Does it talk about notice? Does it say that you can be laid off without notice?

From a practical standpoint, the project is closed, and the company has no work for you—so there is not much to gain from pursuing this further. Yes, your salary should be given, and you should fight for it, but beyond that, it's going to be a waste of time. Look for another job.

Adding to your query, read the terms and conditions of your offer letter. Since the offer is based on a project, there should be clauses regarding the tenure of employment or conditions related to the project. If any clause mentions notice pay or pay for any termination of the project, you could ask for it from your employer, and they are liable to pay.

Secondly, all dues pertaining to your employment have to be paid at any cost, and they can't hold it for any reason (if no charges are against you). Therefore, check with your HR person and clear all your dues before leaving the company. Legal action is not advisable in this case.

Thank you.

Notice Period and Employment Termination

First of all, you should refer to your appointment letter. Generally, for candidates who are on probation, one week's notice is sufficient. One month's notice is required when the employee is confirmed. I would suggest that if you are looking for another job, you should be thankful that in such a short time, you could learn about the company's standing. I wish you good luck in your new job.

Regards,

Violation of Industrial Disputes Act, 1947

Irrespective of the terms in the letter of appointment, the company has violated Sec. 9-A of the Industrial Disputes Act, 1947. You can approach the Civil Court seeking an injunction order against the company to prevent it from closing down. If you are in Bangalore, contact me. I can ensure that the company cannot leave its employees in the lurch like this, violating our labor laws.

Regards

Understanding the ID Act of 1947 in India

The law in India governing lay-offs is the ID Act of 1947. This law's benefit is available only to 'workmen' having at least 240 days of service. It is not applicable to any establishment other than a factory, mine, or plantation.

In the cited case, this law is not applicable as you have not completed one year of service. It is futile to go for litigation.

Regards,
Varghese Mathew
[Phone Number Removed For Privacy Reasons]

I too agree with all the above comments. Go through your offer letter thoroughly. There is no point in taking legal action against the employer, but they must give you the salary for which you have worked.

Regards,
satyaak

Thank you all for your valuable responses. I would like to add here that my offer letter states, 'If either party, either employee or employer, is leaving, they should give 1 month of notice period in writing.'

I spoke to other engineers about moving to the labor court, but they say that if you go to court, the company will simply assign you to another project to avoid the court hassle. What can be done in this case? Can I ask for a higher salary if the company wants me to work on another project?

Sad to say that it is the pattern. If the company does not get the project, they will generally dismiss employees without any consideration and at a moment's notice.

Had the company secured the project and any employee wanted to resign, they would put several barriers and harass the employee. Almost a fifth of the discussions pertain to such issues.

You have been given several choices and suggestions; act on what is best suited to you.

Warm regards.