Facing Job Security Fears: How to Handle Gratuity Issues Amidst Management Changes?

Rachakonda_53
Employment Concerns Amidst Management Changes

One person known to me worked as a secretary. There were two management teams fighting for nearly 8-9 years. Now, the group that actually appointed the person is likely to lose power. Since the person was appointed by the group that was in power and worked sincerely with them, the other group, likely to come to power, might target him. This is not just apprehension but a most likely scenario.

Potential Actions by the New Management

1. Can the new group remove him on some pretext, even though he has worked for more than 10 years?
2. Can they stop paying his gratuity, leave encashment, etc., considering he worked with full loyalty (being a Secretary, he had to work with confidentiality and integrity to the boss in power) to the previous group?
3. Can the present management delay the payment of gratuity and other benefits, citing a financial crisis as a reason, given there are already 50-60 people to be paid?

Seeking Remedies and Suggestions

What are the remedies in the above case? Kindly suggest. Thank you.
nathrao
Gratuity payment is legally mandated, and whether the ruling party or opposition is governing the company, payment cannot be denied. The Labour Commissioner is there to ensure that labour rights are upheld. As long as the employee meets all conditions for gratuity payment, it can be delayed but not denied. Delayed payment will have to be made with interest. Do not worry.
umakanthan53
Dear Rachakonda, needless to say, in any organization, the employer is the most powerful person. Whether one is a paid Chief Executive or an ordinary office boy, no employee can continue their tenure in the organization peacefully and/or dignifiedly if the employer does not approve of them for obvious reasons. However, there are certain legal restraints.

Therefore, the new management may resort to applying some indirect pressure tactics so effectively and constantly that the unwanted employee decides to resign on their own. If good sense prevails, the new management may choose to engage with the individual and retain them in order to uncover any misdeeds or irregularities from the previous administration, which is also a possibility. Therefore, it is difficult to make an educated guess at this point, as your description indicates that the organization is in disarray. Why not expect the new management to take a constructive approach towards restoration?

Just as there is a remedy for denied or delayed gratuity as suggested by Mr. Rao, there are also legal remedies for unjustified termination as well as withholding of other terminal benefits. It would be wise to advise your friend to handle the situation tactfully to retain their job. If that is not feasible, they should start looking for an alternative job.

Thank you.
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute