Hello All, I worked in Private company (KPO) who has contract with company based in USA (Outsourced Work). Our company every year renew the contract with that USA based company and hired us to do the work. In last month, on 15th of November, Manager along with HR Head told us that contract is not being renewed and we are free to look for the job elsewhere. Official notice period for all 12 employee started from 2nd of December which is of 2 or 3 months according to designation, though the notice was never given over mail or in written. Management took another meeting to give us the notice. Management said they will try to accommodate us if there are any vacancy and few of us has been given unrealistic option of relocating to Bangalore for just 15% hike in current package. We are not getting salary for the month of December, as they said it will be calculated in Full and Final settlement though they are paying us the salary for the notice period that we have to serve under normal circumstances which is of 2 or 3 months according to designation. And we are not needed to come into company, last working day will be 31st December 2016. My question is 1. Whether proper procedures are followed here? 2. Are we entitled to get job within company if not then compensation of any kind, salary of Notice period that we are supposed to get is not coming under compensation. Am i Right or Wrong? Kindly help me here with my rights.
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1) it is necessary to peruse your appointment letter to advise
2) if company has issued you termination letter it is bound to pay you salary for the notrice period as per terms of your contract
3) in your case it appears company is willing to pay you 3 months salary
4) you are not entitled to any job within the company .
5) you would be entitled to your gratuity if you have worked for organisation for aroyund 5 years and your provident fund dues
1. Without seeing the contract on this , it is very difficult to advise whether actions of the company is legal or not.
3. Getting jopb within the company is the discretion of the company and you can not force the company for this.
3. Do not work beyond one month and ask for release of all your dues including salary..Seek written instructions from the company on your future course of actions so in future the company may not exploit you.
The employment contract is terminated with the employees by the employer, due to three major reasons which are: (i) the organisation is going through the lean period, (ii) initial faulty hiring, (iii) employee shows deviant behavior, which affects the whole environment.
The technical term for this may be closer to retrenchment even if the company may not use this word.
This may another business strategy and if the proposed action would cover the provisions of Section 2 (oo) of Industrial Dispute Act, 1947, then the procedure followed would be legal and valid.
If it is of the nature of retrenchment then Employee's connection with the organization are severed immediately.
However if the same is of the nature of lay-off, then there is a chance of re-appointment as soon as the lay off period ends.
The compensations as per the employment offer conditions are to be paid in such event and if not paid then you may contemplate to initiate proper legal action for recovery.
1. An employee cannot as a matter of right claim renewal of contract unless there is a clause in the contract itself which lays down the obligation of the employer to renew the contract.
2.However, the employer is bound to make the full and final settlement and release the outstanding dues. Issue a lawyer's notice to the employer to release the salary and relieving letter, and if this also turns out to be futile then file a civil suit for recovery of money in the competent court..
Thank you for the feedback on earlier query. I have follow up question that is as below. 1. Does section 25F of chapter V-A of The Industrial Disputes Act, 1947 applies in this case, though my company is private limited company.? Are we eligible for the compensation of any kind as per the law. This is so because contract between our company and company based in USA has expired and our company has hired us to the jobs sent by USA based company. Now, contract is terminating on 30th December, 2016. Company is asking us not to come for work from next day, so this is Retrenchment. In this case, in our employment CTC offer letter, there is no point specified related to compensation eligible when employees is to be retrenched. Does the company's policies are final or we are eligible for the compensation as per section 25F of chapter V-A of The Industrial Disputes Act, 1947? Thank you for all your help.
1) you have not mentioned what was your salry and your designation with the company
2) if you are not a workmen you cannot move court and seek reinstatement or compensation
3) Section 25F, in the aforesaid chapter, reads as follows:
No workman employed in an industry who has been in continuous service for not less than one year under an employer, shall be retrenched by the employer until
(a) the workman has been given one month's notice in writing indicating the reasons for retrenchment and the period of notice has expired or the workman has been paid in lieu of such notice wages for the period of the notice:
Provided that no such notice shall be necessary, if the retrenchment is under an agreement which specifies a date for the termination of service;
(b) the workman has been paid, at the time of retrenchment, compensation which shall be equivalent to 15 days' average pay for every completed year of service or any part thereof in excees of six months; and
(c) notice in the prescribed manner is served on the appropriate Government.