Legal Question in Employment Law in India

Retrenchment

Presently employed with a FMCG as Regional Commercial Executive(Staff Category) since one and half year.Last week I was told to tender my resignation as the company is in loss and I am surplus.HR said that they will pay me only one month basic. People joining after me are still there.Please advice whether:

1.I am entitled to 1 or 3 months salary(Gross or Basic)

2.I should tender my resignation or they should terminate me.

Also came to know that they have incorporated a new company 2 months back.

Please advice and draft a an appropriate resignation letter.


Asked on 6/21/02, 12:56 pm

2 Answers from Attorneys

Guna Shekaran Indolegal

Re: Retrenchment

Since you are in a staff catagory the Industrial Tribunal Act 1947 applies to you. Under Sec 25 F of the said Act the last commer should go first and you are entitiled for 1 month gross pay and also retrenchment compensation @ 15day of every year of service. 6 month and more will be counted as 1 year. for more detatils contact

R.Gunashekaran , Advocate

indolegal, 18/49 A Ekambara Iyer street, Venkatapuram ambattur, Chennai - 53.

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Answered on 6/23/02, 10:39 am
Ramaswami Natarajan Ramaswami & Associates

Re: Retrenchment

Please refer to your appointment letter and the terms of the employment contract for determining whether they should pay you three months or one month and basic or gross pay. This again depends on if you are a confirmed employee or still on probation. But I guess that you are confirmed, given the fact that a compensation is offered to you.

2. If you are resigning, you have to give the employer depending on the terms of the employment contract either one month or three months notice in advance and normally no compensation need be paid to a resigning employee. Alternatively ask your HR department to give a letter to put in your papers and ask them to make an offer to you on compensation after carefully studying the employment contract about the termination terms.

3. I have no Advocate Client relationship with you and this forum is intended to give only free advice. Hence your request to draft a resignation letter for you is rejected and the request itself is inappropriate. Sorry.

Thank you for your understanding and I hope that this clarifies all your doubts.

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Answered on 6/21/02, 1:25 pm


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