Hi all,
Can you folks help me in knowing the procedures to be followed by the management at the time of layoff. Due to some management issues, the management suddenly said dat dey dont have any fund and laid off almost 95% of the employees and when the employees are asking for the compensation, mgmt is saying dey cant give any compensation eventhough it is mentioned in the appt letter 1 month salary will be paid(but down derz a tricky thing was mentioned dat mgmt can waive it). Now dey are saying dat dey will give 15days salary.. Employees are very much upset now not knowing wat to do.. der was no prior notice.. suddenly dey called up a meeting and conveyed dis msg to the employees.. is there any way employees can be helped out..
Will be very thankful if u can help out pouring some suggestions..
Regards,
Swati
From India, Bangalore
6Can you folks help me in knowing the procedures to be followed by the management at the time of layoff. Due to some management issues, the management suddenly said dat dey dont have any fund and laid off almost 95% of the employees and when the employees are asking for the compensation, mgmt is saying dey cant give any compensation eventhough it is mentioned in the appt letter 1 month salary will be paid(but down derz a tricky thing was mentioned dat mgmt can waive it). Now dey are saying dat dey will give 15days salary.. Employees are very much upset now not knowing wat to do.. der was no prior notice.. suddenly dey called up a meeting and conveyed dis msg to the employees.. is there any way employees can be helped out..
Will be very thankful if u can help out pouring some suggestions..
Regards,
Swati
From India, Bangalore
As per ID Act prior notice is required to be given to employees before lay off & provision of compensation is also their in Act.In case of section VB permission is required from appropriate govt.In contravention of above, lay off will be illegal & ULP complaint can be filed against employer.
V.S.SARODE
From India, Mumbai
V.S.SARODE
From India, Mumbai
dear
i feel with your qurrey that you are little bit confused with lay off and closure and retrenchment you want closure .
lay off is done temporary and employees are entitle for 50 % pay during lay off which can not be done for more than 45 days.
closure is done for closing the establishment,for which permission required and you have to pay 3 month notice pay ,15 days salary for each year of service as retrechment compensation.
tks
j s malik
From India, Delhi
i feel with your qurrey that you are little bit confused with lay off and closure and retrenchment you want closure .
lay off is done temporary and employees are entitle for 50 % pay during lay off which can not be done for more than 45 days.
closure is done for closing the establishment,for which permission required and you have to pay 3 month notice pay ,15 days salary for each year of service as retrechment compensation.
tks
j s malik
From India, Delhi
Hi Swati,
My advice would be to go through the Standing Order of the organization and see what's mentioned in it, at the time of Lay Off.
Secondly, if the manpower in the organization is >50, the employer is liable to give compensation to its employees but in case of manpower <50, it's not mandatory, as per the laws.
Surabhi
From Germany, Frankfurt Am Main
My advice would be to go through the Standing Order of the organization and see what's mentioned in it, at the time of Lay Off.
Secondly, if the manpower in the organization is >50, the employer is liable to give compensation to its employees but in case of manpower <50, it's not mandatory, as per the laws.
Surabhi
From Germany, Frankfurt Am Main
Discrimination by employer in retention bonus and notice pay during closure
Hi,
My company is a MNC into financial services business and closing its operations in India where it is registered as a private limited company since last one and half year. Employee strength is around 50.
Recently, we have been informed by the management that there will be a 6 month notice to each employee. Apart from this management has divided employees in 3 categories critical, essential and non-essential. Here critical employees will get 100% bonus, essential will get 50% bonus and non-essentials will get no bonus.
I have been working for the company since last 3 years into marketing department, where we have team of two, me and the head of the department.
All critical and essential category employees have received written communication about the retention bonus and term.
Now, my boss is suggesting me to look for a new job as I fall in non-essential category, whereas he will be getting 50% retention bonus. And since he created some pressure, the CEO has shifted him and a few employees (who have done buttering job) into essential category from non-essential.
I asked him how come this discrimination happened. He replied that the CEO has got a kitty from the HO and he has to manage in that amount, the reason some people of the lower hierarchy have been eliminated.
We are also committed, capable, performing and loyal as others. My question was why not equal distribution on the bonus among all instead of giving to a few? In that case, higher income level employees are going to get proportionately higher bonus then the lower income group employee.
I strongly feel that this is a scene of moral harassment; please guide me if any legal action can be taken. I am ready to take the battle.
Thanks,
S V
From India, Bangalore
Hi,
My company is a MNC into financial services business and closing its operations in India where it is registered as a private limited company since last one and half year. Employee strength is around 50.
Recently, we have been informed by the management that there will be a 6 month notice to each employee. Apart from this management has divided employees in 3 categories critical, essential and non-essential. Here critical employees will get 100% bonus, essential will get 50% bonus and non-essentials will get no bonus.
I have been working for the company since last 3 years into marketing department, where we have team of two, me and the head of the department.
All critical and essential category employees have received written communication about the retention bonus and term.
Now, my boss is suggesting me to look for a new job as I fall in non-essential category, whereas he will be getting 50% retention bonus. And since he created some pressure, the CEO has shifted him and a few employees (who have done buttering job) into essential category from non-essential.
I asked him how come this discrimination happened. He replied that the CEO has got a kitty from the HO and he has to manage in that amount, the reason some people of the lower hierarchy have been eliminated.
We are also committed, capable, performing and loyal as others. My question was why not equal distribution on the bonus among all instead of giving to a few? In that case, higher income level employees are going to get proportionately higher bonus then the lower income group employee.
I strongly feel that this is a scene of moral harassment; please guide me if any legal action can be taken. I am ready to take the battle.
Thanks,
S V
From India, Bangalore
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The Exodus after a Layoff.doc
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