Dear All
My colleague has joined one XYZ Ltd (Power Distribution Franchise, it receive power from state electricity board ). On 07/11/2014 as Asst Manager HR but after 10 day i.e on 20/11/2014 XYZ Ltd has receive letter from Principal Employer (state electricity Board ) to close contract with XYZ ltd immediate effect. XYZ Ltd serve notice to all employee that we closing down business due to cancellation of contract with state Electricity board. and compel to employee to put resignation then company will give one month notice or salary. Who employee resigned, has received only BASIC wages as one month notice salary. Now my question
1) Is XYZ ltd has right to ask resignation to all employee due to closing of business or which already closed due to cancellation of contract
2) It is closer or retrenchment
3) Paid compensation i.e one month notice salary mean only Basic wages paid by company is legal
4) My colleague has joined 07/11/2014 and company receive notice of closing contract 20/11/2014 ,company asking himput resignation if he want one month notice as wages but pay only basic( his basic wages-Rs22000 & Gross salary Rs 44000)
Pls throw light on above issue and suggestion.
Sacheein
From India, Mumbai
12My colleague has joined one XYZ Ltd (Power Distribution Franchise, it receive power from state electricity board ). On 07/11/2014 as Asst Manager HR but after 10 day i.e on 20/11/2014 XYZ Ltd has receive letter from Principal Employer (state electricity Board ) to close contract with XYZ ltd immediate effect. XYZ Ltd serve notice to all employee that we closing down business due to cancellation of contract with state Electricity board. and compel to employee to put resignation then company will give one month notice or salary. Who employee resigned, has received only BASIC wages as one month notice salary. Now my question
1) Is XYZ ltd has right to ask resignation to all employee due to closing of business or which already closed due to cancellation of contract
2) It is closer or retrenchment
3) Paid compensation i.e one month notice salary mean only Basic wages paid by company is legal
4) My colleague has joined 07/11/2014 and company receive notice of closing contract 20/11/2014 ,company asking himput resignation if he want one month notice as wages but pay only basic( his basic wages-Rs22000 & Gross salary Rs 44000)
Pls throw light on above issue and suggestion.
Sacheein
From India, Mumbai
Please read the terms and conditions of employment, especially the termination clause during probation period.
From India, Ahmadabad
From India, Ahmadabad
Dear Sacheein ji,
My views on your queries are as under:
It is a case of closing down the undertaking. This closing down is on account of unavoidable circumstances beyond the control of the employer.
Under the ID Act, any undertaking which is being closed down for any reason whatsoever, every workman who has been in continuous service for not less than one year in that undertaking immediately before such closure is entitled to one month’s notice or in lieu of such notice, wages for the period of the notice and compensation which is equivalent to fifteen days’ average pay (for every completed year of continuous service) or any part thereof in excess of six months.
Where any undertaking is closed down on account of unavoidable circumstances beyond the control of the employer, the compensation to be paid to the workman not exceeding his average pay for three months.
When the employees opted for resigning from service under whatever compulsion, they are not entitle to any compensation or payment under the ID Act. Whatever compensation paid by the employer as per the understanding between him and the resigning employees.
Also, provisions of ID Act are applicable to workman as defined under the Act.
I hope you got answers to your all questions from above my views.
From India, Mumbai
My views on your queries are as under:
It is a case of closing down the undertaking. This closing down is on account of unavoidable circumstances beyond the control of the employer.
Under the ID Act, any undertaking which is being closed down for any reason whatsoever, every workman who has been in continuous service for not less than one year in that undertaking immediately before such closure is entitled to one month’s notice or in lieu of such notice, wages for the period of the notice and compensation which is equivalent to fifteen days’ average pay (for every completed year of continuous service) or any part thereof in excess of six months.
Where any undertaking is closed down on account of unavoidable circumstances beyond the control of the employer, the compensation to be paid to the workman not exceeding his average pay for three months.
When the employees opted for resigning from service under whatever compulsion, they are not entitle to any compensation or payment under the ID Act. Whatever compensation paid by the employer as per the understanding between him and the resigning employees.
Also, provisions of ID Act are applicable to workman as defined under the Act.
I hope you got answers to your all questions from above my views.
From India, Mumbai
Pls go through your service rules as per appointment letter & Act accordingly
retrenchment benefit will be applicable only after completing one year service as you have mentioned that he has joined duty in the same month so he will be on probation period, so go according to appointment letter or standing rules of the company
From United States, Chicago
retrenchment benefit will be applicable only after completing one year service as you have mentioned that he has joined duty in the same month so he will be on probation period, so go according to appointment letter or standing rules of the company
From United States, Chicago
On record, as described by you, it's not retrenchment but resignation. That too during probation period. In the circumstances the left employees will have no better choice than to take the one month's salary (not the basic pay alone) in lieu of notice. In view of just less than one month of service there is no other benefit will accrue. He may take a service certificate mentioning the 'reason for leaving closure of estt.' instead of resignation which might help him in his future prospects.
From India, Bangalore
From India, Bangalore
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