Hi Team,
I am working for a software company that is a multinational corporation (MNC). I have been with the company for over 12 years. During the recent performance review, I received a 'needs improvement' rating. Following this, a meeting was conducted after two months where HR requested that I resign from my position or face termination. I am unsure about whether I should resign or allow the company to proceed with termination. I have concerns regarding the implications of termination. If the company terminates my employment, will I still receive my entitlements such as notice period pay, retrenchment benefits, payment for unused leave, and a service letter?
HR has indicated that I may lose many benefits if the company decides to terminate my employment. I am contemplating submitting a resignation letter stating that I am resigning as per their request and guidance. In this scenario, would I still be eligible for retrenchment benefits in addition to my notice period salary? I am anxious about receiving all my dues on time. If necessary, do I have the right to take legal action after obtaining my service certificate, gratuity payment, PF transfer, and other clearances? Your clarification and valuable suggestions on this matter would be greatly appreciated. Thank you in advance.
From India, Bengaluru
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I am working for a software company that is a multinational corporation (MNC). I have been with the company for over 12 years. During the recent performance review, I received a 'needs improvement' rating. Following this, a meeting was conducted after two months where HR requested that I resign from my position or face termination. I am unsure about whether I should resign or allow the company to proceed with termination. I have concerns regarding the implications of termination. If the company terminates my employment, will I still receive my entitlements such as notice period pay, retrenchment benefits, payment for unused leave, and a service letter?
HR has indicated that I may lose many benefits if the company decides to terminate my employment. I am contemplating submitting a resignation letter stating that I am resigning as per their request and guidance. In this scenario, would I still be eligible for retrenchment benefits in addition to my notice period salary? I am anxious about receiving all my dues on time. If necessary, do I have the right to take legal action after obtaining my service certificate, gratuity payment, PF transfer, and other clearances? Your clarification and valuable suggestions on this matter would be greatly appreciated. Thank you in advance.
From India, Bengaluru
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What’s the poster’s job position - a workman under the ID Act,1947 or a supervisor or a manager?
From India, Salem
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6108From India, Salem
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Hi Umakanthan Sir, I am working for an IT Company and the designation in records is "Senior Software Engineer" as on date. Thanks in advance.
From India, Bengaluru
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From India, Bengaluru
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Dear IT Employee,
If your designation requires you to make independent decisions or if you have workmen working under you, then you would not fall into the category of a workman as per the Industrial Disputes Act 1947. Consequently, retrenchment compensation is not payable. However, if you are performing skilled, unskilled, manual, technical, clerical, or supervisory work, then you would fall into the category of a workman. In this case, they would be required to pay you retrenchment compensation, notice pay, gratuity, leave wages, pro-rata bonus, and salary. Additionally, you can challenge the termination if it is unfair, such as if they are supposed to retrench the most junior workman in your category first. If you can prove in the Labour Court that the termination is illegal, you will be entitled to full back wages.
From India, Pune
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If your designation requires you to make independent decisions or if you have workmen working under you, then you would not fall into the category of a workman as per the Industrial Disputes Act 1947. Consequently, retrenchment compensation is not payable. However, if you are performing skilled, unskilled, manual, technical, clerical, or supervisory work, then you would fall into the category of a workman. In this case, they would be required to pay you retrenchment compensation, notice pay, gratuity, leave wages, pro-rata bonus, and salary. Additionally, you can challenge the termination if it is unfair, such as if they are supposed to retrench the most junior workman in your category first. If you can prove in the Labour Court that the termination is illegal, you will be entitled to full back wages.
From India, Pune
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This is in addition to what our friend Dmc123 has observed. Designation cannot be a decisive factor for deciding the capacity or nature of a job. Job description would help to a large extent in this regard. As a "senior software engineer," one would be basically performing technical work; if he has to supervise the work of one or two juniors in his team, his work becomes that of a supervisory nature. By any educated guess, the poster's monthly salary would be more than Rs. 10,000.00 in the MNC. The resultant effect, therefore, is that he automatically escapes the ambit of the definition of the term "workman" under the IDA, 1947. Hence, no remedy under the IDA, 1947 for any of his employment grievances like retrenchment, dismissal, etc.
In case of his refusal to resign, the company may terminate his services forthwith as per the notice clause of termination applicable to his cadre. If he feels aggrieved, he will have to initiate a civil suit claiming for damages only. Certainly, that would be a long-drawn legal battle, and if he succeeds, it will only be a Pyrrhic victory. At the same time, if he resigns, he will have to serve the notice period or pay the notice salary to the company. If I were in his position, I would be more concerned about my future career elsewhere. So the poster should try for an amicable settlement with the employer asking for some additional compensation apart from the waiver of notice salary. He would get statutory gratuity for his entire service. Let him be more rational than emotional.
From India, Salem
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In case of his refusal to resign, the company may terminate his services forthwith as per the notice clause of termination applicable to his cadre. If he feels aggrieved, he will have to initiate a civil suit claiming for damages only. Certainly, that would be a long-drawn legal battle, and if he succeeds, it will only be a Pyrrhic victory. At the same time, if he resigns, he will have to serve the notice period or pay the notice salary to the company. If I were in his position, I would be more concerned about my future career elsewhere. So the poster should try for an amicable settlement with the employer asking for some additional compensation apart from the waiver of notice salary. He would get statutory gratuity for his entire service. Let him be more rational than emotional.
From India, Salem
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