I just came across a scenario wherein an employee is recruited for a particular job position. After 2 years, management decided that no more that job poistion is required, hence they abolished the same and asked that person to move to other department. But that concerned person is refused to accept the new department.
Are there any legal issues involved in this case? Whether the concerned person can approach labour court in this case
From India, Coimbatore
Are there any legal issues involved in this case? Whether the concerned person can approach labour court in this case
From India, Coimbatore
Dear Rajesh S,
What clause about transfer has been mentioned in the appointment letter issued to the employee? Many companies include the following clause:
Your services are liable to be transferred from one department to another, from one place to another place, and also liable to be transferred to any place, associate company’s subsidiary organisations or any company wherever the interest of the principal in India, and also your services are liable for deputation or loan to other organisation in which the management may have an interest.
In the above paragraph, the verbiage about the transfer clause is clear. If this type of clause is included in the letter of appointment, then the company's administration can issue the transfer order (TO). The conditions of TO are binding on the employee, and if he/she does oblige to the conditions, then the administration can initiate disciplinary action against the employee.
However, the above-mentioned approach is of negative discipline. Counsel the employee and explain to the employee that the administration does not wish to have any conflict with the employee. The transfer is in the interest of both the employee and the company. Therefore, he/she should not create conditions wherein his/her exit from the company happens on a bitter note.
Thanks,
Dinesh Divekar
From India, Bangalore
7884What clause about transfer has been mentioned in the appointment letter issued to the employee? Many companies include the following clause:
Your services are liable to be transferred from one department to another, from one place to another place, and also liable to be transferred to any place, associate company’s subsidiary organisations or any company wherever the interest of the principal in India, and also your services are liable for deputation or loan to other organisation in which the management may have an interest.
In the above paragraph, the verbiage about the transfer clause is clear. If this type of clause is included in the letter of appointment, then the company's administration can issue the transfer order (TO). The conditions of TO are binding on the employee, and if he/she does oblige to the conditions, then the administration can initiate disciplinary action against the employee.
However, the above-mentioned approach is of negative discipline. Counsel the employee and explain to the employee that the administration does not wish to have any conflict with the employee. The transfer is in the interest of both the employee and the company. Therefore, he/she should not create conditions wherein his/her exit from the company happens on a bitter note.
Thanks,
Dinesh Divekar
From India, Bangalore
Whatever Dinesh has stated are perfect. To add to what he has said, I would say that as far as an employer is concerned, whenever a position is abolished, there are two options; one to retrench the employee or to offer him another position which requires the same skill and gives salary and perks not less than what he was getting from the previous position. Therefore, even if he prefers a legal battle, he will not be able to win it. He cannot any way go directly to Labour Court, but can reach out the Labour Officer who is a conciliation officer. In the conciliation you can very well say that he has not been refused employment, but has offered employment in other department, and that would satisfy the relevant provisions of the Industrial Disputes Act.
From India, Kannur
From India, Kannur
Now the situation is company doesnt require a person for that position . Instead of terminating him, management offer him a new jop opportunties and management know very well that the skill for the new position is not hold by him . This is a Indirect approach of management to remove an employee from the organisation
Now his situation is , he didnt have any other option to leave the organisation and look for other job opportunities
In this case , employee not done any mistake
From India, Coimbatore
Now his situation is , he didnt have any other option to leave the organisation and look for other job opportunities
In this case , employee not done any mistake
From India, Coimbatore
This will stand only if the position is abolished and the new position offered does not require any additional skill. If your intention is to eliminate the employee, you can do so after following the procedures, ie, paying whatever compensation is applicable etc. You cannot just transfer an employee to other department or to a position in which he cannot contribute anything and then after a few months ask him to leave on the charges of non performance. That is injustice and not acceptable also.
From India, Kannur
From India, Kannur
Dear Rajesh
It would help if you can give details of the type of organisation you work with.
In a government company, such things like refusal to accept a transfer is common, in private companies, it rarely works. If the job or designation or department / function is abolished, the employee can not expect to continue to be paid for doing nothing. If he does not accept the transfer, he can actually be retrenched on grounds that the function no longer exists (Madhu will have details of procedure, I am sure)
But again, what was the original function and the new function?
I know many people who left or walked off from jobs because it turned out to be sales related and they dont want to do that job. So that also may be a factor.
From India, Mumbai
It would help if you can give details of the type of organisation you work with.
In a government company, such things like refusal to accept a transfer is common, in private companies, it rarely works. If the job or designation or department / function is abolished, the employee can not expect to continue to be paid for doing nothing. If he does not accept the transfer, he can actually be retrenched on grounds that the function no longer exists (Madhu will have details of procedure, I am sure)
But again, what was the original function and the new function?
I know many people who left or walked off from jobs because it turned out to be sales related and they dont want to do that job. So that also may be a factor.
From India, Mumbai
He was assigned the job to care of operations ( supply chain management, stores and production) . After two years a consultant came and he suggested the management that based on the production capacity , the operation head role is not necessary . Based on the consultant suggestion , management asked the concerned person to work for sales and marketing in which he is not conversant
From India, Coimbatore
From India, Coimbatore
That is the issue. If you feel that a particular person as a production head is not performing you can ask him to go. But then somebody below his would become the Production Head. It is not that a position like Production head is redundant. Anyway, a production person cannot do sales job because these are two extremes. Anyway, if he has been working as a HoD then naturally he will not come under the scope of workman and hence he may not be able to fight legally. Then pay him whatever notice pay is required as per contract of employment and relieve him.
From India, Kannur
From India, Kannur
Any employee is bound by the terms and conditions stipulated in the Appointment Letter. Generally, one of the conditions stipulated in the appointment letter will be "you are subjected to work in any department or section of the department or any location within India either existing or that may come in future at the discretion of the Management". Hence, transfer from one department to another department cannot be disputed unless it is deliberately done with a malafide intention. If it is a workman, he can approach the union and request for a change. If it is an executive / supervisor / manager, it is not worth challenging the action of the Management. In large organizations, deliberately, Management keep changing the roles of the staff to make them multi skilling competitive.
From India, Chennai
From India, Chennai
Sales jobs are for a specific type of people.
Someone who is from operations will mostly refuse to take up a sales job.
If the management is going to insist, he will leave very soon.
I do not know of any company where there is no need to have a head of operations (specially if he is handling supply chain also). So I am not sure of the organisation of it structure or size. I am generally suspicious of consultants who make such suggestions, but then we know nothing of the company or business. I feel there is some other thing we are not being told. The owners suddenly telling a production head his position is abolished and he has to do sales (not supervise, but do sales), is strange to me.
From India, Mumbai
Someone who is from operations will mostly refuse to take up a sales job.
If the management is going to insist, he will leave very soon.
I do not know of any company where there is no need to have a head of operations (specially if he is handling supply chain also). So I am not sure of the organisation of it structure or size. I am generally suspicious of consultants who make such suggestions, but then we know nothing of the company or business. I feel there is some other thing we are not being told. The owners suddenly telling a production head his position is abolished and he has to do sales (not supervise, but do sales), is strange to me.
From India, Mumbai
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