One of my friends is working in a joint venture company. The company was a joint venture between a major PSU oil company and a state government agency. The company didn't perform well, and management has decided to close this company after 5 years. The JV had hired almost 7-8 employees at the time of inception. What would be the fate of the employees of the JV? Will they be absorbed in any of the parent companies, or will they be fired? Please provide your views.
Thanks
From India, Panipat
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From India, Panipat
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A broad answer: "It depends on the management of the firm!" A short answer: weren't the assignments discussed with your friends? Ideally, during a merger, de-merger, or a joint venture, the assignment offers a view of the length of employment with the firm. What were your friends hired for, and who were they reporting to? Looking forward to hearing from you.
From India, Mumbai
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1872From India, Mumbai
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In response to (Cite Contribution), I would like to ask one thing: Is there any legal clause prevailing for the said situation, or does it totally depend on the terms and conditions of the employment between the JV company and the employees?
Regards,
Parikshit
From India, Gurgaon
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Regards,
Parikshit
From India, Gurgaon
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(Cite Contribution) is right when she says "depends on the management of the firm."
Options for Employees in a Joint Venture Closure
Given that both the JV Partners are government bodies [PSU & State Govt agency], there are two possibilities/options at the extremes of the pendulum.
• Unlike private company JVs, PSUs are more likely to adhere to rules and regulations, though not for the love of it but more due to a law-centric way of doing things. So, the chances of being given alternatives are higher. You can ask your friend to check with the management about the options, but this would also depend on the roles of the employees and whether similar positions exist in the parent companies/entities.
• In case the employees are just sacked, there's the legal way. However, they need to consider whether they have the will, money, and time to fight it out. PSUs have full-fledged legal departments, so we are talking here of years rather than weeks or months. In such a scenario, looking out would be the best option from their individual viewpoints.
All the best.
Regards,
TS
From India, Hyderabad
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Options for Employees in a Joint Venture Closure
Given that both the JV Partners are government bodies [PSU & State Govt agency], there are two possibilities/options at the extremes of the pendulum.
• Unlike private company JVs, PSUs are more likely to adhere to rules and regulations, though not for the love of it but more due to a law-centric way of doing things. So, the chances of being given alternatives are higher. You can ask your friend to check with the management about the options, but this would also depend on the roles of the employees and whether similar positions exist in the parent companies/entities.
• In case the employees are just sacked, there's the legal way. However, they need to consider whether they have the will, money, and time to fight it out. PSUs have full-fledged legal departments, so we are talking here of years rather than weeks or months. In such a scenario, looking out would be the best option from their individual viewpoints.
All the best.
Regards,
TS
From India, Hyderabad
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