Working in an MNC company 'A' for 12 years and 3 months at the Mid-Senior level. The company acquired 'B', and hence both are merging. I have been informed that there are no positions available at the new merged company 'C'. All other employees have been absorbed, but I have been asked to resign. I have been a solid performer and have a 3-month notice period. Future opportunities seem limited due to my age (45), gender (female), and the fact that I work in a niche industry, especially during the COVID period. Bonuses are given on a calendar year basis, and I also have vested shares (2021, 2022, 2023) listed on the London Stock Exchange.
I am the sole earner in my family. How much severance or retrenchment package can I negotiate under these circumstances?
From India, Noida
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I am the sole earner in my family. How much severance or retrenchment package can I negotiate under these circumstances?
From India, Noida
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Madam,
Considering your middle-managerial position, you will have to work out your separation package based on the relevant terms of your contract of employment only. If you resign on your own, you will receive only statutory gratuity. If the company decides to lay you off immediately due to surplusage, you will only receive a notice salary of 3 months as per the contract of employment, in addition to gratuity.
Therefore, pursue a negotiated settlement. Highlight the critical need for your continuation, as you are the breadwinner of the family and may face challenges finding alternative employment of similar status due to your age. If your retention is not feasible due to genuine reasons, request a higher compensation package such as retrenchment compensation for the 12+ years of your service. The suggestions provided are a minimum; the final outcome will depend on factors like your current salary, the time required to secure a suitable job locally or elsewhere, relocation costs, and other variables.
From India, Salem
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6108Considering your middle-managerial position, you will have to work out your separation package based on the relevant terms of your contract of employment only. If you resign on your own, you will receive only statutory gratuity. If the company decides to lay you off immediately due to surplusage, you will only receive a notice salary of 3 months as per the contract of employment, in addition to gratuity.
Therefore, pursue a negotiated settlement. Highlight the critical need for your continuation, as you are the breadwinner of the family and may face challenges finding alternative employment of similar status due to your age. If your retention is not feasible due to genuine reasons, request a higher compensation package such as retrenchment compensation for the 12+ years of your service. The suggestions provided are a minimum; the final outcome will depend on factors like your current salary, the time required to secure a suitable job locally or elsewhere, relocation costs, and other variables.
From India, Salem
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Much would depend on the severance package as per the policy of the company. Being an MNC, they would have some laid-down documents for this purpose. Though technically you are an employee of company C, yet your entitlements in company A have to be protected. You need to ascertain what A was offering to comparable employees. But when you are negotiating, ask for an amount which is the sum of gratuity (Basic Pay + DA/26 X no. of completed years of service) + retrenchment compensation (i.e. 15 days' salary for every completed year of service + notice pay as pointed out by learned Shri Umakanthan Sir). In addition, ask for payment of leave salary and extra compensation for searching for an alternate job.
From India, Mumbai
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From India, Mumbai
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Thank you Umakanthan Sir and KK,
The reason given is that no position is available. However, for the full CY 2020, I was tasked to work and deliver on new strategies and business development initiatives. During this time, I successfully completed multiple projects including Strategy documents and New Products Business plans that were accepted by the new company board. As a result, new CAPEX and business segments have been created based on my work.
Essentially, they utilized my industry knowledge for developing these new plans. Now that the work is completed, they have conveniently informed me that there is no role for me. In clear terms, I feel taken advantage of and cheated out of what I am due.
From India, Noida
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The reason given is that no position is available. However, for the full CY 2020, I was tasked to work and deliver on new strategies and business development initiatives. During this time, I successfully completed multiple projects including Strategy documents and New Products Business plans that were accepted by the new company board. As a result, new CAPEX and business segments have been created based on my work.
Essentially, they utilized my industry knowledge for developing these new plans. Now that the work is completed, they have conveniently informed me that there is no role for me. In clear terms, I feel taken advantage of and cheated out of what I am due.
From India, Noida
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