Facing Unexpected Resignation at 50: What Compensation Can I Claim Under Indian Labor Laws?

Hi,

I am 50 years old and have been working as a manager in an MNC for the past 13 years. Suddenly, the company advised us to submit a resignation letter. What compensation should I claim as per the Indian labor act? Please advise me.

Hello Srinivasan,

You can claim for Provident Fund, Gratuity, salary if they are relieving you before the notice period, and any bonus parts/benefits if applicable.

Please note that I want to know, other than PF/Gratuity/two months notice period/ex-gratia (pro-rata basis), what are the other components I have to receive as per Indian law. I have been working for the past 13 years and have financially contributed to the growth of my company.

Understanding Compensation Under Indian Labor Laws

If you are resigning, there is no compensation that you can receive under Indian labor laws. It does not matter that you have been working for 15 years and have contributed to the financials of the company. That was part of your job, and it was your duty to perform your work properly. The compensation you will receive is only what is listed above and nothing more.

However, if you do not resign and you are terminated by the company or retrenched, you would be entitled to compensation. In the case of termination, you would be entitled to reinstatement if the termination is not for a valid cause or for any misconduct under the standing orders. In the case of retrenchment, you will receive retrenchment compensation of 15 days for every year of work. Furthermore, retrenchment can only be done in reverse order, meaning they can retrench you only after they have retrenched others who joined after you.

Dear Sri,

I assume you have not yet submitted your resignation letter. As you are the Manager, you will not be entitled to any relief/compensation which otherwise a workman could claim under Labour Laws, such as Retrenchment Compensation, etc. Please read carefully the terms and conditions of your appointment letter, as they form the basis to discontinue any management staff and vice versa.

Best wishes,

RDS Yadav Director - Future Instt. of Management and Technology Labour Law Advisor navtaranghrs@gmail.com

I agree with Mr. Rds Yadav. The Industrial Disputes Act is not applicable to the managerial category.

The above retrenchment compensation is applicable in case you fall within the scope of Industrial Disputes Act. Your designation 'manager' is not important but your nature of work is. If you are working in a managerial/ supervisory capacity, i.e. you have subordinates under you, you can sanction leave, issue charge sheet/ show cause, and have the authority to sign important documents, etc. Then you won't come under the Industrial Disputes Act.