My name is Kaveri. My designation is Senior Manager dealing. I was working in a private limited company in Salem for the past 3 years and 6 months. Our branch is set to close on September 15th. What compensation will I receive, and what are the rules for informing the employees? There is no job security in a private limited company. At the same time, employees are sometimes treated like slaves. I have received incentives many times. Please advise me on how to negotiate for a higher compensation package. Can you suggest some ideas to secure a fair settlement?
From India, Coimbatore
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From India, Coimbatore
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In the first place, people employed in a managerial capacity cannot claim any remedy under the existing Labour Laws other than their gratuity. Since your total service is less than 5 years, you are not eligible for gratuity. You have not mentioned the total number of workmen employed in the company, including the branch to be closed.
Retrenchment Conditions
If it is 100 and above on average in the preceding 12 months, you have to get prior permission from the State Government before retrenching the employees of the particular branch likely to be closed. Otherwise, you can straight away retrench them by issuing one month's notice or paying one month's salary in lieu of notice and retrenchment compensation at 15 days average wages for every year of completed service.
Compensation for Senior Managers
Regarding your compensation as a senior manager, it is based on the terms of your letter of appointment only.
Regards
From India, Salem
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6108Retrenchment Conditions
If it is 100 and above on average in the preceding 12 months, you have to get prior permission from the State Government before retrenching the employees of the particular branch likely to be closed. Otherwise, you can straight away retrench them by issuing one month's notice or paying one month's salary in lieu of notice and retrenchment compensation at 15 days average wages for every year of completed service.
Compensation for Senior Managers
Regarding your compensation as a senior manager, it is based on the terms of your letter of appointment only.
Regards
From India, Salem
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Thank you, sir, for your guidance.
Does the same apply in the case where my company supplies drivers to individuals/commercial cab owners? In this scenario, the drivers will be on my payroll but serving different clients. Would the Labor Contract Act apply in this case, or would it be the Transport Workers Act?
Thank you.
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Does the same apply in the case where my company supplies drivers to individuals/commercial cab owners? In this scenario, the drivers will be on my payroll but serving different clients. Would the Labor Contract Act apply in this case, or would it be the Transport Workers Act?
Thank you.
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Salary & Compensation Guidelines.zip
Amended Labor Laws.doc
SC guidelines on compensation under MV Act 2.4.2013.pdf