Sudden Job Transfer Notice: What Are Your Rights and Options for Compensation?

My sister is working in a Private Sector job. She received an email on 23rd Aug. 2016 regarding a Transfer letter effective from 01st Sept. 2016 to another state, requiring her to report within 7 days. I would like to know the following:
1) What is the minimum notice period required from the employer in such a case?
2) Does she have the right to seek compensation from the employer if she does not accept the transfer to a new location?

Dear Manish, You have written about your sister's transfer; however, some other information is also required. She is transferred from which location, and where is she told to report? Generally, before issuing the transfer orders, the employee is taken into confidence. Therefore, did the GM or VP intimate her about her transfer? Is it a permanent transfer or a temporary one?

Many companies insert a clause in the appointment letter stating that the employee will be transferred from one location to another for administrative reasons. Is there any such clause?

If the distance between two duty stations is more, then she can ask for more time. By the way, how will she travel? By road, by rail, or by air?

If she is given a transfer order out of the blue, then two things emerge. One is that the top boss is whimsical. If this is not the case, then possibly her relations with her Manager or GM might not be good, and the issue of the transfer order is a ploy so that she puts in her resignation.

When an employee is transferred to another location, the employee can raise a TA/DA claim admissible to his/her designation. She may go and talk to HR and obtain further information.

Thanks,

Dinesh Divekar

She is on the payroll of this company in Rajasthan (Bikaner city), working here for the last 8 years. Recently, she has been informed that she will be relocated to Haryana State (Panipat).

The appointment letter contains a clause stating that the employee can be transferred to any location in India or to any subsidiary/sister concern company, but it does not mention any notice period for such transfers.

Earlier this month, her HR manager informed her over the telephone that the company is planning to close the Bikaner Branch office soon, with all operations being moved to another branch (Sri Ganganagar city).

My sister does not wish to move to Panipat (another state), leaving resignation as the only option. In this scenario:

Questions Regarding Transfer and Compensation

1) Can she request one month to stay in the company since the appointment letter specifies a one-month notice period for job termination from both sides?

2) Is she entitled to claim one month's salary or any other compensation for the sudden loss of income after 8 years of continuous service?

Thank you.

You have not mentioned the company where your sister is working, her position, the number of employees, the products they produce, and whether the location she has been transferred to is a factory or a branch office. Additionally, you have not specified how long she has been employed by this company.

In any case, an employer cannot transfer an employee beyond 15 kilometers from their current job location. However, while this is the rule in the books, the reality is that she is now facing an indirect termination. It might be better for her to either resign from the job or file a complaint with the area labor inspector or the assistant labor commissioner regarding the transfer. In pursuing this course of action, she may encounter various challenges for which she must be prepared. Alternatively, she could look for employment elsewhere to find peace.

Thank you.

From your narration in your latter post, no malafides can be attributed to the orders of transfer issued by the management on such short notice. When the HR manager informed her during the first week of the month about the impending closure of the Bikaner branch, your sister could have requested a transfer to one of the nearby branches of the company. If there were no such options available, she could have submitted her resignation immediately so that her notice period could be served. No purpose would be served by making any complaint in this regard. Instead, she can ask for a waiver of notice if she is determined to resign.

Thank you.

I agree with Umakanthan.

1. The relationship of your sister with the company is more than 8 years.

2. The company is going to close its operation in Rajasthan. Hence, they may terminate with the notice period clause. But it is not so. They are transferring, giving a fair chance to stay with them.

3. The company might be thinking that your sister is at the capacity/capability where she fits for Panipat.

4. Check the understanding between the reporting manager and your sister. If it is not good, then it might be a punishment posting, which generally happens in many companies. Either you accept it, or you can choose to opt out.

5. In such cases, fighting with companies doesn't give any advantage of winning. Even if you win, you will remain as a bad boy, and chances of getting the next job are also difficult as nowadays employee verification process is very prominent in any established organization.

So, take a relook at the situation and understand very clearly why this happened/happening. You will get the way to act further.

Regards, PS

Transfer is a condition of service, which can occur at any time and without any notice. Employees working in a company that operates in different states must be prepared to proceed on transfer. So, the replies to your questions are as follows:

1) There is no prescribed minimum intimation period from the employer in such a case. Compliance must be made as per the implied conditions of the transfer order.

2) She does not have the right to claim any compensation from the employer. Acceptance or denial of the transfer does not fall within the discretion of the employee. The employee must comply with the employer's order; failing to do so may result in disciplinary action initiated by the employer.

Regards, Manish

Dear Manish,

While I agree with the views of Shri Umakanthan and Shri Dhingra, one question comes to my mind. What does the company intend to do with the other employees? Are all of them leaving, or are some of them getting relocated? If it is the latter, then what criteria has the management adopted? If some employees are going to a nearby branch, then your sister may request a transfer to a similar branch. Why give up so easily?

Thank you.