Hello all,

I just want to know if an employee completes 6 years in the same organization and then the employer is going to terminate the employee without giving any notice or reason, what action should the employee take? Secondly, as per the law, what components should be payable? Please suggest.

From India, New Delhi
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The explanations are available in the threads itself. One thing is very important: if the employee has been working in a managerial capacity, he cannot get the protection of labor laws, whereas it is available to those who are not under a managerial or supervisory capacity. In such cases, termination is illegal if it is made without giving notice and without paying compensation, which is equal to 15 days' wages for every completed year of service. Wages for this purpose should include basic wages, dearness allowances, and all other fixed allowances that form part of the salary as per the contract of employment or settlement with the workers.

Madhu.T.K

From India, Kannur
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Dear Sir,

I was working as an Administration Manager in one of the listed companies until December 2018 for a year. I left because the company had been experiencing losses for a few years and had no production output due to an internal financial crisis. My first-month salary was paid in the third month and gradually increased in the fourth and fifth months. My social life was being disturbed, but I patiently carried on. I resigned, served the notice period, provided a proper handover, and completed relieving formalities as per company policies. My last relieving date was January 5, 2019. However, I have not received my experience letter or relieving letter yet.

I received two months of outstanding salary by April 2019, but I am still following up with my seniors for my December 2018 outstanding salary and full and final settlement till date. I have written several emails, made phone calls, and sent WhatsApp messages to my seniors and director. However, they are not responding; they are reading all my messages but not responding.

Please guide me as during my service period, I had borrowed money from lenders to maintain my social life and am still paying interest as I did not receive my salary on time. I would be highly grateful for your assistance.

Today


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Anonymous
Dear All,

I want to know if an employer (MNC IT company) can terminate the service and not give any salary for two months as mentioned in the offer letter. Below is the case:

Due to Covid, the company (let's say company A) fires some employees, and some employees are provided the opportunity to work with another company (let's say company B) which supplies manpower to the company. Now, employees have to sign the offer letter of company B. If an employee does not sign the offer letter and decides to decline due to some reason but is willing to work with company A, Company A considers it a voluntary resignation and does not provide any compensation. Is this action of company A legal? Please advise on what action can be taken against company A.

Thanks


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This is illegal due to various reasons. Employees can be retrenched, but for valid reasons. The employees shall be retrenched in the order that it should be the LAST person employed to leave first from the company.

The company B arrangement is a sham contract. The outsourcing company is only a camouflage, and you will be continuing your work using the same computer, sitting on the same chairs, reporting to the same managers, etc. This is illegal.

In the present situation, many are trying to avoid employees using many tricks. This is one of the ways. If you react, you will lose the job. You will not be able to approach any dispute redressal machinery because in the present situation, nobody attends to all these issues, and therefore, it may take time even to hear your grievances. Alternatively, if you accept the offer, you can continue there, transfer your PF (from the parent company to the outsourced company), and forget about the other benefits.

From India, Kannur
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Anonymous
Thank you, Mr. Madhu, for replying. Yes, you are right. We will be working on the same product, under the same manager, with the same laptop, etc. I am no longer interested in working for a company that has no ethical and moral values. I agree that the company has the right to reduce its costs. However, due to some valid reasons, I am not interested in their arrangements, and I simply want them to pay me for the two months as mentioned in the offer letter. Please advise me on how I can take legal action against the company.

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Legally, what you said is correct. This is a type of arrangement where employees are shifted (transferred) to another company. Before that, the parent company should pay you gratuity (if eligible), retrenchment compensation, and notice pay. However, these apply only to employees who have no subordinates reporting to them.
From India, Kannur
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Hi Madhu Sir,

When we talk about the 100 workers or more than 100 in regard to retrenchment or closure of a unit, my question is whether the contractor's labor is also considered part of the 100 if deployed in the factory, or only regular workers will be considered for eligibility for retrenchment?

Please let me know your thoughts on this matter.

Thank you.

From India, Shahkot
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Legally, for coverage of an establishment, employees shall include all employees, including those engaged through a contractor. Practically, as you are not retrenching the employees of your contractor, only employees directly employed by the employer shall be counted. However, the contract should be genuine and not a sham.

The new code of Industrial Relations has put this at 100 to 300.

From India, Kannur
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