I am working in a manufacturing Pvt Ltd. company as a Purchase Executive for the last 8 years. The company has been running at a loss for more than 6 months, and salaries are not being paid on time. The management is not showing interest in continuing the business and is planning to lock out the company. They are asking all employees to submit resignation letters individually. Most employees have been working for more than 10 years (nearly 65 employees), and some have already left. More than 25 employees are still there.
Assistance Needed for Employee Rights
Could you please help us understand what precautions we should take to support our employees regarding salary, PF, gratuity, bonus, etc.? Also, please advise how many extra months' salary we can request in this situation.
Regards
From India, Bengaluru
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Assistance Needed for Employee Rights
Could you please help us understand what precautions we should take to support our employees regarding salary, PF, gratuity, bonus, etc.? Also, please advise how many extra months' salary we can request in this situation.
Regards
From India, Bengaluru
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Understanding Lock-Out and Employee Rights
It is not clear whether the post relates to the establishment in India or abroad. The term "lock-out" used in the query probably means either retrenchment of the employees or closure of the undertaking.
In respect of employees above the status of workman, if the company is situated in India, termination of employment at the instance of the employer would involve payment of notice pay as per the appointment orders or the contract of employment, as the case may be, and gratuity if they are eligible. In respect of employees in the cadre of "workman," an additional pack of compensation at 15 days' last-drawn wages for every year of completed service will have to be paid by the management as retrenchment compensation, either in case of retrenchment or closure. I think that to avoid these additional financial commitments, the management insists on resignation.
Regarding the peaceful exit of the remaining employees, they can jointly negotiate with the management for a voluntary separation scheme providing for adequate compensation plus timely payment of terminal benefits like gratuity, PF, and other dues such as unpaid salary, bonus, etc., and sign a bilateral settlement in this regard under the Industrial Disputes Act, 1947.
From India, Salem
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6108It is not clear whether the post relates to the establishment in India or abroad. The term "lock-out" used in the query probably means either retrenchment of the employees or closure of the undertaking.
In respect of employees above the status of workman, if the company is situated in India, termination of employment at the instance of the employer would involve payment of notice pay as per the appointment orders or the contract of employment, as the case may be, and gratuity if they are eligible. In respect of employees in the cadre of "workman," an additional pack of compensation at 15 days' last-drawn wages for every year of completed service will have to be paid by the management as retrenchment compensation, either in case of retrenchment or closure. I think that to avoid these additional financial commitments, the management insists on resignation.
Regarding the peaceful exit of the remaining employees, they can jointly negotiate with the management for a voluntary separation scheme providing for adequate compensation plus timely payment of terminal benefits like gratuity, PF, and other dues such as unpaid salary, bonus, etc., and sign a bilateral settlement in this regard under the Industrial Disputes Act, 1947.
From India, Salem
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Umakanthan sir,
I think they should talk to the labor commissioner's office in their region and present their petition to protect their interests. It would be good if you could suggest to them a step-by-step process.
From India, Chennai
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I think they should talk to the labor commissioner's office in their region and present their petition to protect their interests. It would be good if you could suggest to them a step-by-step process.
From India, Chennai
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Dear Sir,
Thank you for your reply. Could you please clarify whether we should only request unpaid salary, PF, bonus, and gratuity, or if there is a provision to claim additional months of salary in the case of voluntary separation schemes?
Gangadhar.
From India, Bengaluru
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Thank you for your reply. Could you please clarify whether we should only request unpaid salary, PF, bonus, and gratuity, or if there is a provision to claim additional months of salary in the case of voluntary separation schemes?
Gangadhar.
From India, Bengaluru
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If the remaining employees also wish to resign at the management's request, as others have done, they cannot receive anything other than unpaid salary, bonus, gratuity, and the cash value of the unavailed portion of earned leave directly from the employer. They can also make a claim for Provident Fund through him. If the exit is under a mutually agreed Voluntary Retirement Scheme (VRS), they may receive additional compensation as provided for in the scheme.
It is advisable to make a joint representation to the management for the timely disbursement of salary and other statutory dues. If the response indicates an inability to pay due to mounting losses and poor business performance, then a complaint should be made to the area Conciliation Officer (Labour Officer/ACL/DCL) as suggested by Fred. During discussions, the Officer may propose retrenchment or a voluntary retirement scheme as alternatives to the deadlock. Upon your acceptance, he can persuade the management to settle accordingly.
Regards
From India, Salem
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It is advisable to make a joint representation to the management for the timely disbursement of salary and other statutory dues. If the response indicates an inability to pay due to mounting losses and poor business performance, then a complaint should be made to the area Conciliation Officer (Labour Officer/ACL/DCL) as suggested by Fred. During discussions, the Officer may propose retrenchment or a voluntary retirement scheme as alternatives to the deadlock. Upon your acceptance, he can persuade the management to settle accordingly.
Regards
From India, Salem
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