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abhirutu
3

Shirley
I was heading Legal department of a US MNC in India with more than 35000 workforce globally and 3500 in India with 11 entitites. We had to downsize bargainable and managerial staff. The handling procedure and comp package was different. For bargainable staff which is covered under the Laws of the Land, full compliance with the prevalent statues is always safe, healthy and avoiding future complications. In your case, Prima facie, these (support?) staff are protected by their terms of appointment and in any case you will have to give them 1 month pay in lieu of notice if you are "retrenching" them immediately. So also the current trend in engg industries is to provide 15 days wages for every year of service completed by the concerned staff. Now if your company itself is 15 months in operation, some of them may not even have completed one year and you will have to check their "eligibility" even for this retrenchment. However, since yours is a MNC and to set a good precedent you can always provide additional one or two months wages as compensation for their past meritorious service. Its unfortunate for both of you and them that economic recession has hit. If you have any query please feel to write to me at or pick up a phone and call at +91 9822394170. Wish you ALWAYS best luck!!! Sanjay


From India, Mumbai
bastinfdo
Hello,
My suggestion would be compensate one month salay as a Noticepay which is mentioned in the Appointment letter, the rest(Extra one month pay) you can pay as other components such as Ex-Gratia or anyother title :)
Br bastin fernando


shaival.tiwari
10

As Mr Mailk said, an pay retrenchment compensation can considered as must. And also if your company is registerd with employment exchange, you also have to give written information about layoff along with the no. of employees. An employee can make a labour issues out of it.
else very thing is regular.

From India, Mumbai
sunil dutt
Hi Shirley,

We just gone through this phase.

Process was simple and like this:-
  • Co. dicided a compensation cader wise across the level.
  • Talked directly explained the company present scenerio in black and white.
  • Gave 3 months basic + annual benefits (LTA,encashment)
  • Requested these employees to put up the papers
  • with in three days cleared all the dues.
NOw the point is amount of compensation :-
THIS DEPENDS UPON
  • PRofiles handled,CTC drawn, % of compensation as per cadre .
  • % can vary depending upon type of industry,its present state of affair.
U C statutory benefit are given by most of Companies. But if u shell out some additional then the exit is hassle free.

Because then the departing employee get some finincial breather while he goes for job hunt. Which some times take time also.



RGDS

SRD

From India, Mumbai
sunil dutt
Hi Shirley,

We just gone through this phase.

Process was simple and like this:-
  • Co. dicided a compensation cader wise across the level.
  • Talked directly explained the company present scenerio in black and white.
  • Gave 3 months basic + annual benefits (LTA,encashment)
  • Requested these employees to put up the papers
  • with in three days cleared all the dues.
NOw the point is amount of compensation :-
THIS DEPENDS UPON
  • PRofiles handled,CTC drawn, % of compensation as per cadre .
  • % can vary depending upon type of industry,its present state of affair.
U C statutory benefit are given by most of Companies. But if u shell out some additional then the exit is hassle free.

Because then the departing employee get some finincial breather while he goes for job hunt. Which some times take time also.

As the strength that you are looking to lay off is less . Money should not be an issue.......


RGDS

SRD

From India, Mumbai
radhu.sima
3

If you want to retrench only a few of the employees, then follow the principle of Last In First Out. It will create less bad blood. Also, check if you can provide outplacement services in related industries. That will be a positive approach.
From India, Mumbai
Ranganathan V
1

All,
In pvt sector pl go with commitment's given & taken as per the offer letter issued and if there is any other policy which you have flotted surpassing the offer letter. However, just ensure you list out all the compensation related benefits directly payable and through govt like PF etc in the letter that is issued.
While termination letter is not a practice in india, other countries yes.
Regards

From India
mahesh shukla
6

Hi Sherly,
Basically during termination, whatever we have given him in writing in his contract of employment, according to that only we have to pay him as notice period compensation. Just check the appoinment letter and according to that you suggest for the notice period comp. Along with that we also bneed to give the Leave encashments also.
Regards,
Mahesh


terapallisuresh
Hi Guys,
You are talking of companies of size 30 to 100 but companies of size 1000 are asking the employees to put there papers down in one day notice if not they are terminating saying non performer(No law for this). As a HR at times we need to take tough decissions as the situation demands but as a humen touch we can even find a job for them through our resources as you guys are talking of 5 or 10 employees. I am not sure how the companies are effected by this globel economy but everyone feels this is the right time to get the bench reduced to 3 to 4%.
Regards,
Suresh

From India, Hyderabad
BADLOOSER
15

Bit confusing...question
Your title mention Lay-off and described intention for retrenchment....YOu have to follow Chapter V-A and V-B of ID Act which ever is applicable to retrench or lay-off..as you deemed fit.
But
you have to pay notice
plus retrenchment/lay-off compansation
Gratuity
Any other severence award if any company policy since your's is canada base company they do offer some sort of severence award for serving some mandatory period..
Plus any other benefits like insurance or medical on retrenchment as per company policy because US/Canada based companies do follow their compensation package inclusive of these elements as seperation cost, if not its not mandatory...
Badlu

From Saudi Arabia
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