Is My Company’s Forced Resignation Tactic Legal, and Can We Get Help for a Fair Redundancy Package?

My company has strategically decided to let go of all the employees in the company with over 10 years of service and replace them with juniors. Instead of firing or mass layoffs, they are forcefully asking employees (harassing employees) to tender resignations and give a standard notice period of 2 months or pay for 2 months. In this financial year so far, at least 100 people have been asked to go, and a few more hundreds will be asked to resign. Is there any way the relevant law enforcement authorities can come and inspect what's going on and help to get some sort of redundancy package for the employees?

Is your establishment a factory? What is the designation of employees being removed? Some employees have to show guts, stand up, and take on harassment by putting things in writing and organizing other people being laid off. If the category is worker, then go to the Jurisdictional Labour Officer of the Area. Remaining silent and not organizing employees to protest unjustified layoffs by demanding resignation will not help.

Employees should decline to give resignation. Join together and fight. Though managerial-level employees seldom show such unity among themselves.

Let the company terminate and then file a civil suit against the company.

Dear Colleague, from what you have stated, it looks like 'retrenchment' and not 'lay-off'. The Industrial Disputes Act contains legal requirements before retrenching employees if the company employs 300 or more workers. The main question for determination here will be whether the retrenchment is legal and justified. You should approach Labour Authorities in your area and submit a written representation signed by all those who are retrenched and ask for their intervention. Additionally, you need to check if the software industry in Bangalore has been given any special exemptions under labor laws by the government.

Regards, Vinayak Nagarkar HR Consultant

What is happening in your establishment is due to a lack of understanding and unity among the staff. The management has taken advantage of this lack of unity, or otherwise, no management would ever be able to remove such a mass of manpower without obtaining permission from the appropriate government, i.e., 'Retrenchment/Termination'.

Your management cannot carry out retrenchment/termination en masse as the strength of your establishment exceeds 100 without permission from the appropriate government, as stipulated by the Industrial Disputes Act.

Nobody can help if someone is tendering resignation and prefers to leave the job; what could be the reason behind the scenes?

Now is the time for all employees to come together to fight. Nowadays, plenty of opportunities are available; seek help from the media, government, and unions to stop this.

Raise your voice, and let it be heard loud and clear.

Regards,

Dear friends,

Still, the minimum number of workmen employed in an industry prescribed under section 25-K of the ID Act, 1947, for the applicability of Chapter V-B remains at 100. The episode narrated in the thread is a clear-cut violation of the provisions of retrenchment in a disguised fashion. It is better not to get pinned down by the pressure tactics of the management and resign, but instead, make a joint complaint to the State Labor Commissioner.

This is a software product company based in Marathahalli, Bangalore, with 1000 employees. Every month, they ask around 40 to 50 people to resign (retrenching).

What are the implications if I mention the company's name in this email thread?

Dear Friend,

You can report the company to the Labour Department with the support of your colleagues who are also victims. It is not necessary to mention the company here, but doing so can help other forum members identify similar culprits. Make sure you have all the necessary records and evidence when you take the step of reaching out to the Labour Department or any other relevant authorities.

Friends,

This is not a case of layoff. This is not a case of retrenchment. It is a force by management on individual staff to resign one by one to bring the cost down. It is not a fair play by the management. The management is taking undue advantage of staff who are not united. There is a need for staff to come together to negotiate a golden handshake with management.