Dear Professionals,
If company want to downsizing employee strength due to restructuring company what is the legal procedure to terminate employee, and how much compensation we have to pay for managerial and workman employee category please advice.
From India, Nashik
If company want to downsizing employee strength due to restructuring company what is the legal procedure to terminate employee, and how much compensation we have to pay for managerial and workman employee category please advice.
From India, Nashik
You can consider offering VRS Scheme OR Golden Handshake.
But there is no rule as to how much compensation a company needs to pay. This depend upon so many factors, like Employees' service length (no of years they put in in the company,
no of years left for their attaining age of superannuation,Their cadre/position in the company, above all, company's ability to pay.
In Banks, there are rules and regulations governing VRS.
In Industries where registered Unions are available, some kind of agreement will be
entered into between Union/Workers representatives and Management, and accordingly compensation will be decided and paid.
Please throw some light about your organisation, so that more information could be supplied.
From India, Aizawl
624But there is no rule as to how much compensation a company needs to pay. This depend upon so many factors, like Employees' service length (no of years they put in in the company,
no of years left for their attaining age of superannuation,Their cadre/position in the company, above all, company's ability to pay.
In Banks, there are rules and regulations governing VRS.
In Industries where registered Unions are available, some kind of agreement will be
entered into between Union/Workers representatives and Management, and accordingly compensation will be decided and paid.
Please throw some light about your organisation, so that more information could be supplied.
From India, Aizawl
Thanks you Radhakrishnan Sir for your quick advice but our company is just years old and employee strength is just 19 on payroll, Management want to reduce manpower around 40% of total strength, management insist me to fire old senior employees 1st, can i fire senior employee as decided by management, and what reason of termination should i mention in termination letter pls advice.
From India, Nashik
From India, Nashik
The retrenchment in work field is the part & parcel of restructuring. You need to follow the rules of retrenchment as per the ID Act.You need to retrench the employees last-in into your company. You need to understand the category of employees are subjected for retrenchment, can't be taken new person in that category once you retrenched. Take your management into confidence to consider some packages for the employees likely to be retrenched. As per your posting, a retrenched employees maximum to be paid out is 105 days(90 days as notice pay & 15 days for Retrenchment compensation) as the case may be. Keep positive feeling for the workmen because they are the key for the development of business.
From India, Mumbai
From India, Mumbai
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