Facing Pressure to Resign Without Compensation in BPO: What Are My Legal Options?

Legal Advice Needed for Employment Issue

I have been working in a BPO company for 6 years. Currently, the process is ramping down, and they no longer require my services in this process. They are requesting that I resign and are not considering my request for retrenchment compensation. Furthermore, they are threatening to withhold my salary for the current month if I do not resign. It is evident that they are avoiding termination to avoid paying retrenchment compensation.

Please advise me on how I should legally handle this situation. Can they withhold my current month's salary if I choose not to resign?

Thank you.

Hi,

BPO/IT companies do not pay retrenchment compensation; however, you are eligible for Gratuity, leave encashment, etc. Retrenchment compensation is applicable in factories and industrial establishments.

Dear Hemad and Vijay,

BPO comes under the industry definition; hence, the ID act is applicable to BPOs as well. Therefore, Hemad is eligible for retrenchment compensation.

Thanks,
Sandeep

Retrenchment and Legal Compliance under the Industrial Disputes Act, 1947

Whenever an employer, irrespective of the type of their industrial establishment, wants to retrench a workman due to the inability to retain them further, they must comply with the provisions of notice and compensation as outlined in the Industrial Disputes Act, 1947. Failure to do so will amount to illegal termination, making the employer liable for the reinstatement of the workman with back wages and continuity of service if the matter is agitated before the appropriate forum for redressal.

That's the reason for the insistence on resignation and not due to non-application of the provisions. It is advisable for the poster to raise an industrial dispute if they are a workman as per Sec. 2(s) of the I.D Act, 1947.

Hi,

What is the nature of your job, Managerial/supervisor/skilled, etc.? If you are a workman under section 2(s) of the ID Act 1947, you can approach the Labour Department of your area. If the employer does not pay the salary on the due date (delayed), makes unauthorized deductions, or provides short payment, you can contact the authorities under the Payment of Wages Act 1936.

Thanks & Regards,
RL Dhingra, Advocate
Labour Law Consultant
Delhi & NCR
Mob. 09818309937
Email: rld_498@rediffmail.com

I am a Quality Analyst there. Suggest me if I resign with reason that the company wants me to resign. Will that written resignation letter be proof of company forceful resignation or I just refuse to resign.

Can they hold my salary if I refuse to resign?

How can I claim my retrenchment compensation?