I am working in an MNC. Because I couldn't find a project for the last 2 months, they asked me to submit my resignation. Their offer is 2 months' gross salary, and I don't need to serve a notice period. Since the company no longer requires my services, I am prepared to leave. However, I would like to know if receiving two months' salary is a fair deal or not. If not, how much can I ask for? If I decline their suggestion and they terminate me, what severance package will I receive?
From India, Ernakulam
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From India, Ernakulam
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Hi Partner,
The first thing is that there is no severance package being offered here. It seems it is just the notice period pay of 2 months that is being offered to you, which you would have received anyway if you had resigned on your own and had served the notice period of 2 months. Normally, employment contracts hold a 2-month notice period clause, though some companies recently have made this 3 months.
The next question is on why you had not been able to land a project in the last 2 months if you had been on the bench or in the free pool. If this is a case where the right project matching your skillset had not been available, the company cannot terminate your services or force you to quit, because it is not your fault that there is no project, though in the future they can try for loopholes on role redundancy factors. I remember having worked on a case a few years back where the resource had been on the bench for more than 6 months because the company could not find the right project of her skill set, and she refused to resign. In the end, she found another job in another company.
If it is a case where projects have been available but you have been refusing the opportunities, then you should be having a valid reason on why you cannot take up the project. An example is a case where an employee is offered a project of an entirely different skill set that she/he is not trained in. This can lead to a situation where non-performance issues pop up at a later stage of the project, leading to even the termination of employment services in the future.
So, it may be better to either continue until you get another job at another company or a project of relevance at the same company. The so-called severance package of 2 months' pay offered here does not seem to be a good deal.
From India, Bengaluru
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62The first thing is that there is no severance package being offered here. It seems it is just the notice period pay of 2 months that is being offered to you, which you would have received anyway if you had resigned on your own and had served the notice period of 2 months. Normally, employment contracts hold a 2-month notice period clause, though some companies recently have made this 3 months.
The next question is on why you had not been able to land a project in the last 2 months if you had been on the bench or in the free pool. If this is a case where the right project matching your skillset had not been available, the company cannot terminate your services or force you to quit, because it is not your fault that there is no project, though in the future they can try for loopholes on role redundancy factors. I remember having worked on a case a few years back where the resource had been on the bench for more than 6 months because the company could not find the right project of her skill set, and she refused to resign. In the end, she found another job in another company.
If it is a case where projects have been available but you have been refusing the opportunities, then you should be having a valid reason on why you cannot take up the project. An example is a case where an employee is offered a project of an entirely different skill set that she/he is not trained in. This can lead to a situation where non-performance issues pop up at a later stage of the project, leading to even the termination of employment services in the future.
So, it may be better to either continue until you get another job at another company or a project of relevance at the same company. The so-called severance package of 2 months' pay offered here does not seem to be a good deal.
From India, Bengaluru
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Hi Nelsonthomas9102, thanks for the response.
I said it's a severance package because here they offered me a 2-month gross salary, and I don't need to serve a notice period. Due to the Covid situation, most of the accounts are ramping down, which is why I couldn't find a project in the last 2 months.
My manager suggested me to go for a 3-month leave without pay. I rejected their proposal because I have loans, EMIs, and all. So, they asked me to submit my resignation, and they will provide me with a 2-month salary without needing to serve a notice period. Since the company no longer requires my services, I am ready to leave. However, I would like to know what will happen if I ask for a better severance package.
From India, Ernakulam
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I said it's a severance package because here they offered me a 2-month gross salary, and I don't need to serve a notice period. Due to the Covid situation, most of the accounts are ramping down, which is why I couldn't find a project in the last 2 months.
My manager suggested me to go for a 3-month leave without pay. I rejected their proposal because I have loans, EMIs, and all. So, they asked me to submit my resignation, and they will provide me with a 2-month salary without needing to serve a notice period. Since the company no longer requires my services, I am ready to leave. However, I would like to know what will happen if I ask for a better severance package.
From India, Ernakulam
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