I received cessation letter as below from Home Credit.
COVID-19 is impacting everyone around the world and every aspect of our daily lives: our social
interactions, our family life, our communities, and, of course, how all of us work at Home Credit. Multiple
aspects of our business have changed dramatically over the last couple of months and many of these
changes are expected to be permanent. While we will continue to build a more focused Home Credit,
we do not foresee having enough productive work for all our employees. We owe all our colleagues a
challenging work environment, but we won’t be able to offer that to you going forward.
While new business models & formats, digital leadership, and innovative data tools help, the decision
of how to operate and when to make changes, is a human one. With limited business opportunity we
are compelled to adjust our market strategy and organization structure to sustain and survive in this
difficult competitive market.
In view of above, we regret to inform you that your services would no longer be required by the
Company with effect from the closing hours of 28-May-2020.
In lieu of such cessation, you will receive Notice Pay as per Notice Period Policy in accordance with the
Terms & Conditions of Employment with Home Credit India Finance Private Limited.
The management wishes to place on record its appreciation for all your contributions in the past and
wishes you all the best for the future.
After this letter, I asked for Severance pay and prorated bonus but company is not responding. They are blocking my email everytime I send them an email asking for the same. They did F&F with notice pay and leave encashment.
Please advise. I was working as Sr. Manager there.
Thanks
Harvinder
From India, Delhi
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COVID-19 is impacting everyone around the world and every aspect of our daily lives: our social
interactions, our family life, our communities, and, of course, how all of us work at Home Credit. Multiple
aspects of our business have changed dramatically over the last couple of months and many of these
changes are expected to be permanent. While we will continue to build a more focused Home Credit,
we do not foresee having enough productive work for all our employees. We owe all our colleagues a
challenging work environment, but we won’t be able to offer that to you going forward.
While new business models & formats, digital leadership, and innovative data tools help, the decision
of how to operate and when to make changes, is a human one. With limited business opportunity we
are compelled to adjust our market strategy and organization structure to sustain and survive in this
difficult competitive market.
In view of above, we regret to inform you that your services would no longer be required by the
Company with effect from the closing hours of 28-May-2020.
In lieu of such cessation, you will receive Notice Pay as per Notice Period Policy in accordance with the
Terms & Conditions of Employment with Home Credit India Finance Private Limited.
The management wishes to place on record its appreciation for all your contributions in the past and
wishes you all the best for the future.
After this letter, I asked for Severance pay and prorated bonus but company is not responding. They are blocking my email everytime I send them an email asking for the same. They did F&F with notice pay and leave encashment.
Please advise. I was working as Sr. Manager there.
Thanks
Harvinder
From India, Delhi
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This is not an isolated case. Even the Apex Court has said that it should be settled between the employer and the employee and should not come to me(!). Whatever you have received should be treated as Final payment due to you.
Was there anywhere in your appointment order mentioned that you would get retrenchment compensation or severance pay? Normally not. But for an employee coming under the purview of Industrial Disputes Act, compensation for loss of job depending upon the number of years worked should be paid, and that should be paid even if the appointment order is silent about it. However, for a Manager, there is no scope for severance pay.
Bonus is also payable to those who come under the bonus qualifying salary bracket (Rs. 21,000) and obviously, your salary would be much higher than this. Certainly, companies pay bonuses as part of CTC to employees in the managerial cadre as well. But that cannot be demanded as a dispute falling under non-payment of bonus. For the recovery of a bonus or part of a bonus, again, you should file a civil suit, saying that there is a breach of contract. Obviously, there is a breach of contract because as per the contract, there is a remuneration called bonus which has not been paid by the employer. However, the non-payment of the bonus will not be entertained by the (Labour) dispute settlement machinery but can only be challenged as a breach of contract in a civil court.
From India, Kannur
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4765Was there anywhere in your appointment order mentioned that you would get retrenchment compensation or severance pay? Normally not. But for an employee coming under the purview of Industrial Disputes Act, compensation for loss of job depending upon the number of years worked should be paid, and that should be paid even if the appointment order is silent about it. However, for a Manager, there is no scope for severance pay.
Bonus is also payable to those who come under the bonus qualifying salary bracket (Rs. 21,000) and obviously, your salary would be much higher than this. Certainly, companies pay bonuses as part of CTC to employees in the managerial cadre as well. But that cannot be demanded as a dispute falling under non-payment of bonus. For the recovery of a bonus or part of a bonus, again, you should file a civil suit, saying that there is a breach of contract. Obviously, there is a breach of contract because as per the contract, there is a remuneration called bonus which has not been paid by the employer. However, the non-payment of the bonus will not be entertained by the (Labour) dispute settlement machinery but can only be challenged as a breach of contract in a civil court.
From India, Kannur
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I read this note, please correct me in case this is wrong:
I asked questions to the company as they terminated 1800 employees in a single day:
1. Did they take approval from respective authorities for this layoff?
2. Do they have standing order for layoff?
3. Under which act are they holding bonus and severance pay?
I never received a reply even after writing 6 emails, logged the complaint with the labor office. They sent a notice to the company, but no one came. And now the labor Inspector asked to file a case in the labor court.
I read online:
Subject to the provisions of Chapter V-B of the Industrial Disputes Act, 1947, in respect of Lay-Off, retrenchment, and Closure, the Company has to get prior permission from the Appropriate Govt before resorting to such maneuvers affecting the employment of its employees falling within the definition of the term "workman" under the Act. If not, the orders of retrenchment will be illegal.
Secondly, irrespective of the amount of salary, all employees doing their work under the supervision and control of their superiors are workmen as defined under the ID Act, 1947. One of my friends sent the case - A S Raghavendra vs M/S Bharati Airtel Limited on 29 November 2019. Being the expert, please check the judgment and advise.
Thanks Harvinder
From India, Delhi
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I asked questions to the company as they terminated 1800 employees in a single day:
1. Did they take approval from respective authorities for this layoff?
2. Do they have standing order for layoff?
3. Under which act are they holding bonus and severance pay?
I never received a reply even after writing 6 emails, logged the complaint with the labor office. They sent a notice to the company, but no one came. And now the labor Inspector asked to file a case in the labor court.
I read online:
Subject to the provisions of Chapter V-B of the Industrial Disputes Act, 1947, in respect of Lay-Off, retrenchment, and Closure, the Company has to get prior permission from the Appropriate Govt before resorting to such maneuvers affecting the employment of its employees falling within the definition of the term "workman" under the Act. If not, the orders of retrenchment will be illegal.
Secondly, irrespective of the amount of salary, all employees doing their work under the supervision and control of their superiors are workmen as defined under the ID Act, 1947. One of my friends sent the case - A S Raghavendra vs M/S Bharati Airtel Limited on 29 November 2019. Being the expert, please check the judgment and advise.
Thanks Harvinder
From India, Delhi
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True, retrenchment of workmen without approval from the government is illegal. Also, those who do not have managerial functions fall under workmen, even if they are designated as Managers or Senior Managers. The cited case and other cases relevant to the issue support it. Since your Labour Officer has expressed his helplessness, the only way out is to approach the court. The Labour officer himself should have referred it to the Labour Court or tribunals. Since it is a matter of 1800 employees, some positive steps can be expected.
From India, Kannur
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From India, Kannur
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Bonus here is performance bonus. I got over 100% in last 3 years, even 107% for last year. Since company terminated us so they are liable to pay prorated amount from 1st jan to 28th may, whiçh anyways we would have got in case of continuation of service till 31st dec 20.
Can you provide some judgements where it has been mentioned that all managers come under workman.
Also should i file claim notice or demand notice?
Pls advise
From India, Delhi
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Can you provide some judgements where it has been mentioned that all managers come under workman.
Also should i file claim notice or demand notice?
Pls advise
From India, Delhi
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Some important Employment and labour law notifications during Covid 19 lockdown - consolidated b.jpg
Some important Employment and labour law notifications during Covid 19 lockdown - consolidated b.pdf