Facing a Salary Cut and Job Uncertainty: What Are My Rights Under Indian Labor Laws?

Currently, I am seeking a new project within the company. I have been informed that this would be my last month receiving a salary, and after that, I will be on the bench with no payroll, i.e., no salary, if I don't find any project.

My questions are as follows:

1. They are not firing me or giving me notice. I will only receive this month's salary. From next month onwards, I will be on the bench with no salary. Is this allowed?

2. If I give a 3-month notice, will they require me to stay and provide 3 months' salary, or can they release me immediately with only this month's salary?

3. If they terminate me, would I be eligible to receive 2 months' salary as per labor laws in India? My offer letter states a 3-month notice period.

Any suggestions on labor laws are welcome.

In India, labor laws govern employment terms and conditions, including notice periods and salary entitlements. Here are some key points to consider in your situation:

1. Salary on Bench: It is not uncommon for companies to place employees on the bench without pay if they are unable to find a new project. However, it's essential to review your employment contract and relevant labor laws to ensure that this practice complies with regulations.

2. Notice Period: If you provide a 3-month notice as per your offer letter, the company may choose to either retain you for the entire notice period and pay you accordingly or release you immediately with only the current month's salary. Again, this should align with the terms outlined in your contract and Indian labor laws.

3. Termination Entitlements: In the event of termination, your entitlement to salary would typically depend on the terms specified in your offer letter and the applicable labor laws. If your offer letter states a 3-month notice period but the company terminates you without cause, you may be entitled to compensation equivalent to the notice period, which could be 2 months' salary.

To ensure clarity and protect your rights, consider consulting with an employment lawyer or HR expert familiar with Indian labor laws. They can provide tailored advice based on the specifics of your situation and help you navigate any potential legal implications.