Facing Job Loss at 55: How Can I Navigate Financial and Career Challenges?

Sir, I am working with a private company as an accountant for the past 30 years. Now, the company wants to shut down its branch and is asking me to resign. Unfortunately, it is not possible for me to resign at this stage due to medical challenges as I am 55 years old and also facing financial issues. I have two children who are still studying and not yet settled. I am feeling very depressed about the situation and uncertain about what to do next. They have given me only 3 months' time and informed me to search for a new job. I am struggling to find employment at my age. Can anyone guide me on what steps I should take next? What should I request from my company? What is VRS, and what are its rules and how are they applicable to me? Please, can someone provide guidance on this matter?

Dear Srinivas, certainly, it is a harsh blow to an employee who has served an organization diligently for a continuous period of 30 years when he is suddenly asked to resign by the employer. At the same time, you have to evaluate certain aspects of the situation dispassionately.

Considerations when a company shuts down

First, when the company shuts down its branch and is not in a position to offer you employment elsewhere (which should also be acceptable to you), it can retrench you, for which it has to pay retrenchment compensation at 15 days' wages for every completed year of service. Either out of difficulty or to avoid such an additional payment, your employer might have asked you to resign on your own. Since you had been an accountant in the organization, you might be well aware of the actual position. In order to circumvent the legal provision relating to retrenchment compensation, knowing well that you cannot comply with due to your personal difficulties, they may transfer you to some other branch. Then you would be compelled to resign.

Considering the age of superannuation

Second, assuming that the age of superannuation is 58 years, you have only three years more. If continued in service, after retirement, you are going to get gratuity only as a terminal benefit. Therefore, your employer would not be prepared for your voluntary separation under any scheme, which normally would apply to employees above the age of 40 years with a minimum of 10 years of remaining service.

Under the above circumstances, you may choose not to resign and ask them to transfer you elsewhere or retrench you with retrenchment compensation. Alternatively, you can request the management for some extra amount as an additional terminal benefit in view of your service and family situation.

Dear sir, thank you for your valuable information. As informed above, I went for a final discussion with the company, but they refused to pay any benefit apart from my PF and gratuity, which I am already eligible for. They denied paying any extra benefits.

The major concern for me at this stage is my daughter's education. She is a merit student and achieved a good rank in the recent NEET exam held in May, securing a medical seat in KAMINENI RESEARCH CENTER, HYDERABAD.

Now, the challenge is that I paid her first-year tuition fees by taking private finances, for which I am paying an interest of 3000 PM. In this situation, if my company takes a harsh decision like closing its branch and asking me to resign without any benefits, I will ultimately not be able to pay for my daughter's education. I have been in depression for the past two months and am feeling very confused. I can't let my child's dream of becoming a doctor be shattered. Could you please suggest if there is any law that states a private company has to pay benefits to its employees if the company decides to close?

Thank you.