Sudden Job Loss: Can We Ask for Notice or Compensation When Laid Off?

Hi,

I am working in a private limited company for the last 5 months. Suddenly, the operations manager started calling some of us and telling us not to come from tomorrow because there is no work. Is there any chance we can ask the company for a notice period or anything that would give us some time to search for a new job or request them to pay us one month's salary?

Please help.

Sunil Singh

You can request for 1 month of notice pay if you are laid off under circumstances of no work, sudden loss, or project loss in the company.

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Thank you for your reply. The company is successfully running other processes, and it is also not shutting down the process for which they hired us. That was supposed to start 5 months back but has not yet started till now. We were working on other processes based on requirements. I have worked for 10 years, and I have never faced this type of situation before. Getting a new job at this age and time is very hard. What do you suggest I should do in this case? Please help.

All affected employees should speak to the management. Try to convince the HR and HOD about the need to keep them on for other processes. As a last resort, seek intervention from governmental agencies, such as the labor officer, if you fall into the category of workmen.

In this case, you can ask for notice pay because the company is not shutting down, and neither is the process. It would just be some part of politics.

Totally agree with Mr. Nathrao. I would only add that taking communication of not coming to work from the manager in writing is essential.

Thank you.

Practical problem is the company cannot provide work and can't pay salary. So it's better to consider this situation as a notice and switch to an immediate suitable opportunity. This way, you can save your career and later communicate regarding any conflicts with the company and appropriate authority.

There is no such hard and fast rule that a company must serve the notice if it was not mentioned in the offer letter/joining letter that both sides will serve a one-month notice before leaving. If not, please note that as per the labor act, if you are under the company's paid staff and PF or other statutory deductions are made, then you may go to the legal cell and ask for one month's salary in lieu of one month's notice to leave the job. Before that, you have to talk with the HR or HRD.

Dear Sunil Singh,

Nothing of the sort of hit and trial can work favorably for you if a manager asks you verbally not to come from tomorrow. An informal order has no relevance for the purpose of recruitment or termination and can adversely affect your career and financial situation. The day you act upon such informal/verbal advice or instruction of the manager and stop reporting for duty, nobody would be able to save you from (1) terming your absence as unauthorized absence, leading to disciplinary action against you, or (2) being asked to pay the notice period pay for not serving notice for resignation, as you would not be able to prove that your manager asked you to resign or not to come from the next day.

The question arises, if the manager says they don't have work, why should the manager not resign first to prove that the company doesn't have work for the employees?

However, as a goodwill gesture and to avoid any bitterness, you can submit your resignation notice for one month, which is necessary to leave the company in an honorable manner.

The Factories Act is silent about the notice period. The Industrial Disputes Act stipulates one to three months for workmen for retrenchment. Some Shops and Commercial Establishment Acts (e.g., Kerala) stipulate one month. In establishments with standing orders, the workmen can request a notice if provided under it.

In other cases not covered under the above Acts, especially for non-workmen, the employer can terminate without notice unless specified in the appointment order.