Myself Prakash, working in HR as HEAD. Management taking decision for staff reduction due to recession, sale reduce, 2 years no assurance of growth. As HR head, management giving me name of staff , to whom need to remove. Can we remove staff by giving them notice by mentioning above reasons. I am getting difficulty when i interacting with staff. As per management decision need to take action by considering staff requirement, so keeping flexibility while discussion with staff. But some staff asking more i.e . compensation, more time as difficult to find job . Considering this things, we are ready to give time , but some staff threatening from local persons, some staff not giving resign . On one of the staff from purchase, management having doubt about making fraud , but no evidence so please suggest how to take action .
From India, Pune
2From India, Pune
Hi Mr.Prakash,
First Part:
Yes you can retrench you employees.
If your organization employing more than 50 but less than 100 than You have to give one month notice (Stating the reason for retrenchment) to employees who has been in continuous employment for not less than one year or you have pay them in lieu of notice period.
In case if your organization employing more than 100 workers than you have to give 3 month notice and you have to get proper permission from government.
But while retrenching your employees you have to follow principle that "LAST COME FIRST GO", this mean you can terminate employees who joined last first.
If organization is under economic stress you can terminate employees by following the above said rule & principle and compensate them according to the law. if any employees do not accepting the legally served notice and threatening you than you can take this to Assistant commissioner of labour who having jurisdiction over your company.
On the second part of your doubt regarding doubting the integrity of purchase department staff sorry I do not have that much knowledge and exposure to answer it.
With Regards
Mr.Thumbs UP
From India, Chennai
First Part:
Yes you can retrench you employees.
If your organization employing more than 50 but less than 100 than You have to give one month notice (Stating the reason for retrenchment) to employees who has been in continuous employment for not less than one year or you have pay them in lieu of notice period.
In case if your organization employing more than 100 workers than you have to give 3 month notice and you have to get proper permission from government.
But while retrenching your employees you have to follow principle that "LAST COME FIRST GO", this mean you can terminate employees who joined last first.
If organization is under economic stress you can terminate employees by following the above said rule & principle and compensate them according to the law. if any employees do not accepting the legally served notice and threatening you than you can take this to Assistant commissioner of labour who having jurisdiction over your company.
On the second part of your doubt regarding doubting the integrity of purchase department staff sorry I do not have that much knowledge and exposure to answer it.
With Regards
Mr.Thumbs UP
From India, Chennai
Legally retrenchment of workers is on first come first served basis.
However it is not the case for management staff, or anyone excluded from industrial dispute act.
For your part, you need to basically negotiat neither your staff to convince them to resign and leave. your management needs to decide a fair policy and implement it uniformly across the company. Giving someone more time is of no meaning. Having uninterested staff in the premises is also a bad idea. Instead decide what notice pay you are willing to give.
You should make it clear to the staff who are resisting that if they don't resign, you will be forced to terminate them. And termination will make it more difficult to find another job.
From India, Mumbai
However it is not the case for management staff, or anyone excluded from industrial dispute act.
For your part, you need to basically negotiat neither your staff to convince them to resign and leave. your management needs to decide a fair policy and implement it uniformly across the company. Giving someone more time is of no meaning. Having uninterested staff in the premises is also a bad idea. Instead decide what notice pay you are willing to give.
You should make it clear to the staff who are resisting that if they don't resign, you will be forced to terminate them. And termination will make it more difficult to find another job.
From India, Mumbai
Dear Mr. Prakash, While resorting tor retrenchment you cannot pick and choose, you have to follow the policy of last in first out that is the emplolyee who joined last is first to go and in succession thereof. If you are engaging more than 100 people and are in mfg then Govt permission is necessary. Otherwise you can display a seniority list which should be category wise as per the Industrial Disputes Act, display general notice giving reasons for retrenchment and issue individual letters to the employees whom you are going to retrench alongwith retrenchment compensation @ 15 days salary per completed ykear of service and 1 months notice pay. Whenever your sales increase and you need to re employ workmen, you have to give preference to the retrenched staff by issuing a public notice in accordance with section 25H.
From India, Pune
From India, Pune
Dear Prakash,
If you frame your query in the most generalised way, the response would just be presumptive based on the general legal provisions only and may not serve your purpose as expected. You ought to have mentioned the nature of your industry, its constitution, the total no of employees with break-up details of workmen and staff, the details of study,if any conducted by the management to determine the right size of the work force in the back-drop of continuing recession, the no of people to be sent out,the rationale behind the pick and choose method of identifying the persons to be sent out like habitual absentees, inefficient workers, workers facing disciplinary actions on the ground of serious misconducts, the ratio of engagement of contract labour in the works, details as to the no. of trade unions, if any functioning, wage revision, if any due in the current year, gratuity insurance scheme, if any in vouge, the average age of the workmen, age of the industrial establishment, the duration of the recessionary trend, details of scheme of voluntary separation, if any proposed by the management and the response thereof and the austerity measures introduced by the management so far like reduction in the managerial strength, salary etc. Better try to respond accordingly.
From India, Salem
If you frame your query in the most generalised way, the response would just be presumptive based on the general legal provisions only and may not serve your purpose as expected. You ought to have mentioned the nature of your industry, its constitution, the total no of employees with break-up details of workmen and staff, the details of study,if any conducted by the management to determine the right size of the work force in the back-drop of continuing recession, the no of people to be sent out,the rationale behind the pick and choose method of identifying the persons to be sent out like habitual absentees, inefficient workers, workers facing disciplinary actions on the ground of serious misconducts, the ratio of engagement of contract labour in the works, details as to the no. of trade unions, if any functioning, wage revision, if any due in the current year, gratuity insurance scheme, if any in vouge, the average age of the workmen, age of the industrial establishment, the duration of the recessionary trend, details of scheme of voluntary separation, if any proposed by the management and the response thereof and the austerity measures introduced by the management so far like reduction in the managerial strength, salary etc. Better try to respond accordingly.
From India, Salem
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