Dear all,
I would require your guidance on the following: My sister is working with a company. Last week, her company gave her a termination letter with one month's notice due to the company closing its business. This letter has been given to all the employees of the company. According to the letter, the company's notice period ends on the 15th of April. Her company expects all the employees to work until the last date (15th Apr 13). The company has paid the salary to all employees until 31st March 13.
The company will pay the salary for the next 15 days on the last day of work as per the termination letter.
I have the following queries:
1) Does the employee need to work for the company after receiving a termination letter with one month's notice?
2) Also, I feel the company is not paying additional salary as per the termination policy; they are paying the salary for worked/working days.
Please give me your expert advice. I truly believe the company is cheating all the employees.
From India, Mumbai
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I would require your guidance on the following: My sister is working with a company. Last week, her company gave her a termination letter with one month's notice due to the company closing its business. This letter has been given to all the employees of the company. According to the letter, the company's notice period ends on the 15th of April. Her company expects all the employees to work until the last date (15th Apr 13). The company has paid the salary to all employees until 31st March 13.
The company will pay the salary for the next 15 days on the last day of work as per the termination letter.
I have the following queries:
1) Does the employee need to work for the company after receiving a termination letter with one month's notice?
2) Also, I feel the company is not paying additional salary as per the termination policy; they are paying the salary for worked/working days.
Please give me your expert advice. I truly believe the company is cheating all the employees.
From India, Mumbai
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754
Thank you for your response!
She is into e- commerce industry , managing operations
(a) four
weeks’
prior
written
notice
from
the
company
(b) twelve
week’s
written
notice
from
you
until
you
have
been
continuously
employed
for
twelve
complete
years;
and
(c) one
additional
week's
notice
for
each
completed
year
of
continuous
employment
thereafter
up
to
a
maximum
of
16
weeks'
notice.
From India, Mumbai
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She is into e- commerce industry , managing operations
(a) four
weeks’
prior
written
notice
from
the
company
(b) twelve
week’s
written
notice
from
you
until
you
have
been
continuously
employed
for
twelve
complete
years;
and
(c) one
additional
week's
notice
for
each
completed
year
of
continuous
employment
thereafter
up
to
a
maximum
of
16
weeks'
notice.
From India, Mumbai
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Thank you for your response!
She is in the e-commerce industry, managing operations.
I found a relevant article -
How to shut down a private limited company in India?
Here are the procedures for shutting down a private limited company in India:
1. Up-to-date returns (viz., Annual Return and Balance sheet) have to be filed with the Registrar of Companies (ROC).
2. A statement of account has to be prepared one month prior to the submission of the application u/s 560 stating that no assets and liabilities except share capital and P&L debit balance.
3. An Affidavit needs to be executed (Rs. 20 Stamp Paper) and to be notarised (signed by all directors).
4. An Indemnity has to be executed (Rs. 100 stamp paper) (signed by all directors).
5. If there is any unsecured loan, then a waiver letter should be submitted.
Timeframe: About 2 months
Source: [How to shut down a private limited company in India? | Cogzidel Consultancy Services Pvt Ltd](http://cogzidel.in/blog/2010/09/17/how-to-shut-down-a-private-limited-company-in-india/)
Apart from this, can you elaborate on why you think the company is cheating?
What is the tenure of:
a) Your sister's service
b) The company's service or life.
Have they mentioned any reason for closing their operations either on the termination letter or have they communicated verbally to them?
You mentioned that they were handed a termination letter mentioning 15th April as the last working day. What is the harm in going for the last few days to the office?
You can always search for a job eventually, and if you get something suitable, one can go for the interview. I do not think that HR would make a fuss over it, knowing that they are completely closing down, and it is obvious that the employees will have to look out for new jobs.
From India, Mumbai
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She is in the e-commerce industry, managing operations.
I found a relevant article -
How to shut down a private limited company in India?
Here are the procedures for shutting down a private limited company in India:
1. Up-to-date returns (viz., Annual Return and Balance sheet) have to be filed with the Registrar of Companies (ROC).
2. A statement of account has to be prepared one month prior to the submission of the application u/s 560 stating that no assets and liabilities except share capital and P&L debit balance.
3. An Affidavit needs to be executed (Rs. 20 Stamp Paper) and to be notarised (signed by all directors).
4. An Indemnity has to be executed (Rs. 100 stamp paper) (signed by all directors).
5. If there is any unsecured loan, then a waiver letter should be submitted.
Timeframe: About 2 months
Source: [How to shut down a private limited company in India? | Cogzidel Consultancy Services Pvt Ltd](http://cogzidel.in/blog/2010/09/17/how-to-shut-down-a-private-limited-company-in-india/)
Apart from this, can you elaborate on why you think the company is cheating?
What is the tenure of:
a) Your sister's service
b) The company's service or life.
Have they mentioned any reason for closing their operations either on the termination letter or have they communicated verbally to them?
You mentioned that they were handed a termination letter mentioning 15th April as the last working day. What is the harm in going for the last few days to the office?
You can always search for a job eventually, and if you get something suitable, one can go for the interview. I do not think that HR would make a fuss over it, knowing that they are completely closing down, and it is obvious that the employees will have to look out for new jobs.
From India, Mumbai
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Dear friends,
Even for closing down an establishment/firm, the termination of employees has to take place, and they have to be paid "Retrenchment compensation" along with other benefits such as gratuity, PF/Pension, bonus, and leave encashment. A full and final settlement should be made based on their eligibility. There is no other alternative to closing employment other than retrenchment with suitable compensation.
Kumar S.
From India, Bangalore
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Even for closing down an establishment/firm, the termination of employees has to take place, and they have to be paid "Retrenchment compensation" along with other benefits such as gratuity, PF/Pension, bonus, and leave encashment. A full and final settlement should be made based on their eligibility. There is no other alternative to closing employment other than retrenchment with suitable compensation.
Kumar S.
From India, Bangalore
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