Dears,
Due to a recent reorganization in the company, some employees have been made redundant. Although we have settled the cases for all others (all white collar), there is 1 blue collar employee, who is refusing to leave on mutual consent. I would like to know if :
1. Can we terminate him by paying 3 months’ notice pay (as per appointment letter) + Gratuity amount – as due?
2. Is there any additional payment required – e.g. severance pay that we paid to others (2 month salary / year of service) – if he is terminated
3. Is there any risk of him going to Labour Court and the court asking us to “re-hire” him mandatorily?
4. What is the best way to terminate him with least risk to the company?
I would be highly obliged if you can help me on this case.
thanks,
R
From India, Delhi
Acknowledge(0)
Amend(0)
Due to a recent reorganization in the company, some employees have been made redundant. Although we have settled the cases for all others (all white collar), there is 1 blue collar employee, who is refusing to leave on mutual consent. I would like to know if :
1. Can we terminate him by paying 3 months’ notice pay (as per appointment letter) + Gratuity amount – as due?
2. Is there any additional payment required – e.g. severance pay that we paid to others (2 month salary / year of service) – if he is terminated
3. Is there any risk of him going to Labour Court and the court asking us to “re-hire” him mandatorily?
4. What is the best way to terminate him with least risk to the company?
I would be highly obliged if you can help me on this case.
thanks,
R
From India, Delhi
Acknowledge(0)Amend(0)
The effect of the exit described in the post consequent on the refusal of the employee is "retrenchment" under Section 2(oo) and if he is a "workman" under Section 2(s) of the Industrial Disputes Act, 1947.
Before retrenching an employee who has continuous service of not less than one year in the establishment, if it has 100 or more workmen on its rolls, prior permission should be obtained from the Appropriate Government, as per Section 25-N(b) of the ID Act, 1947. Mr. R can go through the Act for other procedural formalities.
Whether the "retrenchment" is resorted to with or without prior permission as the case may be, one month's notice or one month's salary in lieu of notice shall be paid, and compensation should be paid to the workman at the time of retrenchment at 15 days' average pay for every year of completed service as per Section 25-F of the Act.
Complying with all the above conditions before the exit of the particular employee is the only risk-free option available to the management. Otherwise, it would be an illegal action entitling the employee to reinstatement and back wages if he raises an industrial dispute in this regard.
From India, Salem
Acknowledge(0)Amend(0)
6185Before retrenching an employee who has continuous service of not less than one year in the establishment, if it has 100 or more workmen on its rolls, prior permission should be obtained from the Appropriate Government, as per Section 25-N(b) of the ID Act, 1947. Mr. R can go through the Act for other procedural formalities.
Whether the "retrenchment" is resorted to with or without prior permission as the case may be, one month's notice or one month's salary in lieu of notice shall be paid, and compensation should be paid to the workman at the time of retrenchment at 15 days' average pay for every year of completed service as per Section 25-F of the Act.
Complying with all the above conditions before the exit of the particular employee is the only risk-free option available to the management. Otherwise, it would be an illegal action entitling the employee to reinstatement and back wages if he raises an industrial dispute in this regard.
From India, Salem
Acknowledge(0)Amend(0)
Dear Mr. Umakanthan, Thank you so much for your response. This is very helpful to me. Yours Sincerely, R
From India, Delhi
Acknowledge(0)Amend(0)
From India, Delhi
Acknowledge(0)Amend(0)
Hi,
I am working in a pharmaceutical company. I have signed a service bond for 2 years upon joining, and I was given an appointment letter that stated my notice period after resignation is 1 month. Now, after completing 2 years, I resigned 2 months ago. However, my employer is not releasing me in one month as per the appointment letter. They are now stating that the company policy has changed, and I am required to work for three months before leaving. Unfortunately, my joining date at a new company is approaching soon. What should I do in this situation?
Best regards.
From India, Hyderabad
Acknowledge(0)Amend(0)
I am working in a pharmaceutical company. I have signed a service bond for 2 years upon joining, and I was given an appointment letter that stated my notice period after resignation is 1 month. Now, after completing 2 years, I resigned 2 months ago. However, my employer is not releasing me in one month as per the appointment letter. They are now stating that the company policy has changed, and I am required to work for three months before leaving. Unfortunately, my joining date at a new company is approaching soon. What should I do in this situation?
Best regards.
From India, Hyderabad
Acknowledge(0)Amend(0)Engage with peers to discuss and resolve work and business challenges collaboratively - share and document your knowledge. Our AI-powered platform, features real-time fact-checking, peer reviews, and an extensive historical knowledge base. - Join & Be Part Of Our Community.
Termination-emp loyment_563.pdf
Blue-ocearn-str ategy-15178_142 .ppt