A senior employee at the level of CFO was forcibly transferred to a branch where there is no need for such a position. The person has worked for five years and regularly received good increments and variable pay, and their performance was very good. However, due to political reasons and personal rivalry, such a situation was created, and the CFO had to resign, feeling humiliated. All other senior managers kept quiet for fear of losing their jobs.
Can the CFO claim extra compensation over and above the statutory dues from the company for this ill-treatment, which has affected their professional life? The CFO is still young, with about twenty years of active professional life remaining.
From India, Madras
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Can the CFO claim extra compensation over and above the statutory dues from the company for this ill-treatment, which has affected their professional life? The CFO is still young, with about twenty years of active professional life remaining.
From India, Madras
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Well, legally, the employee can sue the company, file a case of defamation, and calculate the losses due to the impact of this forced resignation on their professional as well as personal life. However, this has to be done only with the help of jurisdiction and will require evidence of their performance, as well as the political mishaps.
From India, Delhi
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From India, Delhi
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Company's Obligation to Pay Statutory Dues
The company is bound to pay all statutory dues. However, you cannot approach a court just because the company transferred you and you refused to go there and resigned. Such resignation cannot be considered as forced resignation.
Regards,
Kamal
From India, Pune
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177The company is bound to pay all statutory dues. However, you cannot approach a court just because the company transferred you and you refused to go there and resigned. Such resignation cannot be considered as forced resignation.
Regards,
Kamal
From India, Pune
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In court, it can be proven. forced resignation can be proven, given that there are evidences of humiliation. Its a simple case of self defence.
From India, Delhi
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From India, Delhi
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If compensation is required for defamation and humiliation, then district courts. Labour courts would be for dues which the company is bound to pay as per the policy. This case is different.
From India, Delhi
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From India, Delhi
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Transfer Clauses and Employee Rights
If the terms of employment or the appointment order of the CFO include a clause for his liability to be transferred to any other units, branches, or offices of the company, the CFO cannot complain. The clause in the appointment order gives the company the power to transfer, and the employee must accept the transfer and work at the new location. Even in the case of workmen, as defined under the Industrial Disputes Act, courts have accepted the employer's power to transfer the worker, provided either the standing orders or the appointment order contains a clause to that effect.
If the CFO, after resigning, claims that the resignation was forced, he must prove it in a court of competent jurisdiction with evidence. Similarly, in the case of industrial workers, if a worker alleges mala fide motives on the part of the management for transferring him, he must provide evidence that the management acted with mala fide intentions. It is not the employer's responsibility to establish that the transfer was bona fide.
In the case of the CFO, based on the designation indicated in the post, it is assumed that he is not a worker as defined under the Industrial Disputes Act. Therefore, he cannot seek a remedy from any labor laws. He must seek a remedy through a civil court with jurisdiction over the issue.
With regards,
From India, Madras
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If the terms of employment or the appointment order of the CFO include a clause for his liability to be transferred to any other units, branches, or offices of the company, the CFO cannot complain. The clause in the appointment order gives the company the power to transfer, and the employee must accept the transfer and work at the new location. Even in the case of workmen, as defined under the Industrial Disputes Act, courts have accepted the employer's power to transfer the worker, provided either the standing orders or the appointment order contains a clause to that effect.
If the CFO, after resigning, claims that the resignation was forced, he must prove it in a court of competent jurisdiction with evidence. Similarly, in the case of industrial workers, if a worker alleges mala fide motives on the part of the management for transferring him, he must provide evidence that the management acted with mala fide intentions. It is not the employer's responsibility to establish that the transfer was bona fide.
In the case of the CFO, based on the designation indicated in the post, it is assumed that he is not a worker as defined under the Industrial Disputes Act. Therefore, he cannot seek a remedy from any labor laws. He must seek a remedy through a civil court with jurisdiction over the issue.
With regards,
From India, Madras
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Thank you for your input. If I am not mistaken, some years back there was a judgment of the Supreme Court in which it was clearly stated that even if the transfer clause is not present in the employment contract/appointment letter, the employer has full authority to transfer any of its employees as per the service requirement.
Regards,
Kamal
From India, Pune
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Regards,
Kamal
From India, Pune
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Dear SIr, WHat evere is quoted may be in true sense but law demands evidence. If it is there it is advisabel to g in court of law. Otherwise it will better to keep quite. R D Watve
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Legal Clarification on Revocation of Resignation & Severance Dues.pdf
Resignation Letter.jpg