Struggling to Get My Full Retrenchment Compensation: How Can I Resolve This?

To: CiteHR Senior Members

Sir, I have a personal issue with my Company XXX (Steel Plant).

In September 2013, the company retrenched all employees as approved by the Labour Commissioner, Bengaluru, after a gherao, strike, etc., in the plant. The Retrenchment Order (copy reproduced below) states that the settlement amount as per the IDA Act will be deposited in my bank account.

However, while depositing the settlement amount in the bank, the company retained approximately Rs. 47,000/- citing "Funds shortage."

After six months (on 1.3.2014), the company paid approximately Rs. 21,000/- stating that the balance Rs. 26,000 will be paid in a month. (I have returned all company items and nothing is left with me.) Despite sending several letters and making phone calls to the MD, Joint Director (O, HR&A), FC, GM, etc., there is no proper response. They have delayed payment so much that it seems they do not want to pay. The company retained 25 employees including the Director (O, HR&A), VP, FC, GM-Marketing, etc. When the company retrenched me in 2013, I was 57 and thus did not get a job outside, though I attended some interviews.

There are 7-8 other officials for whom some balance is not paid, including the above top management whom the company retained and who are getting a good monthly salary. Other officials got good jobs elsewhere and are not interested.

Though I was appointed as HR Manager in May 2007, they gave me promotion orders as Sr. HR Manager & AGM-HR&A later without any benefit, stating "Plant under Loss/Shut-down" due to our Supreme Court ban on iron ore (basic raw material for our plant).

In the above circumstances, I request CiteHR Senior Members to guide me on how to get my balance amount to meet my expenses. As the Retrenchment Order clearly stated that the retrenchment is under the IDA Act, can I request the Labour Commissioner to direct the company to pay the balance retrenchment compensation?

I once again request Sr. CiteHR Members to guide me in the matter to get my balance retrenchment compensation amount.

Yours Sincerely,

C. Neyim Khan, 14.9.2015

AGM-HR & Admn.,

Mobile No. [Phone Number Removed For Privacy Reasons] Email: [Email Removed For Privacy Reasons]

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No. RO/2013/

Date: 07.9.2013

To,

Mr.: C N Khan

Emp. No: 01364

Dept.: HR & Admin.

Sub: Retrenchment Order – Reg.

Ref: Order No. IDA-4/CR-8/2013-14 Bangalore dt. 19th August 2013 from the Labour Commissioner, Govt. of Karnataka, Dept. of Labour, Karmik Bhavan, Bangalore, under IDA -1947 Section 25 (N) (06) – As per the Govt. Notification No. SWL 55 LLE 85 dated: 07.02.1986 permitting retrenchment of all the employees.

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It is to inform you that the Management of M/s. XXX Ltd., xx xx have taken a decision with reference to the above Retrenchment Order from the Labour Commissioner, Govt. of Karnataka, Bangalore, to retrench your services from the company w.e.f. 12th September 2013.

All your settlement amount as per the IDA Act will be deposited in your bank account in SBM, Hiriyur.

If you have any company's materials in your possession or in your name, please return the same to the HR Dept. and get a "No Due Certificate." Otherwise, the materials cost will be deducted from your final settlement amount and the balance amount will be deposited in your bank account.

For XX Ltd.,

(XX XX)

JOINT DIRECTOR (O, HR&A)

I think you now need to go to the office of the labor commissioner who gave the original order and complain to him. Based on his response, the next step can be considered.

You can go and submit your appointment to the labor commissioner and seek justice; otherwise, you will be required to pay the 3-month notice period payment.

Hi, Senior Members.

On 15th September 2015, I would like to express my gratitude to Saswata Banerjee and Rambabu for their advice regarding the balance payment of my Retrenchment Compensation that has been withheld by my company. Despite the fact that the company is owned by reputable mine owners with substantial financial resources, they are failing to fulfill their statutory obligations. This is happening despite numerous requests and representations, causing significant issues for the employees.

Should you wish to contact me, please feel free to reach out via email at c.neyimkhan@gmail.com.

Thank you.

Since you were a Senior HR Manager at the time of retrenchment, the company can rightly state before the labor commissioner or Labour Court that you are not a workman as per the Industrial Disputes Act and not eligible for any relief from the Labour Court as your claim is not an industrial dispute.

Varghese Mathew
08547139493

As suggested by the other members, go and approach the labor commissioner to represent your case. You also mentioned, "I have returned all company items and nothing is left with me," but do you have the NOC? That's what will count in the end. Regarding your remark, "Company belongs to reputed mine owners with money and wealth," just forget about this aspect and focus on how to get your money.

Like the saying goes, "In India, the industry can go sick, the industrialist never goes sick" — the most recent example being the owner of SpiceJet or even Satyam Ramalinga Raju — who still seems to have the funds to pump into his new venture, albeit through others.

All the best.

Regards,
TS