• Termination without cause + no severance pay

I was hired by an US based MNC BPO company in their Bangalore office in Sept 2010 as a Senior Manager – Solution Architect in the Finance & Accounting outsourcing division. Mine is an individual contributor role that involves looking at RFP’s from prospective clients and building solutions by coordinating with various departments and submitting the proposal for approval with the management team at the company. I do not have any persons reporting into me directly or indirectly. 
I have been given 100% performance bonus every quarter and have met and/or exceeded all performance targets every year. 
On Friday, 10/March’2017 at around 10 pm, my manager (who is based in the US) asked me to attend a telephone meeting. On that meeting the local HR Manager was present. They told me that due to financial losses and the economic conditions my position was being eliminated with immediate effect. I was told to go to office on Monday, 13/Mar and return all company assets. I was also told that I will not be allowed to serve my notice period (2 months as per contract) and search for other positions within the company. I was also told I will be given payment of 2 months of salary which is the notice period defined in my employment contract and other standard payouts like PF, Gratuity, leave encashment. 
I followed up with email on Monday, 13/March and have confirmed that the company will not pay any severance pay or offer any outplacement services.
I find this highly unfair and would like to ask if I am entitled to severance pay or some money due to termination without cause. What should be my next steps ?
Asked 7 years ago in Labour

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3 Answers

You are entitled to 2 months notice payment as per your appointment letter as company has terminated your services

2) you would also be entitled to PF , gratuity etc

3) you would not be entitled to sevearance pay or compensation

Ajay Sethi
Advocate, Mumbai
95205 Answers
7607 Consultations

5.0 on 5.0


It is highly unfair and arbitrary on part of your employer to terminate your services with out any advance notice and your termination is totally against all known labour laws.

Industrial Dispute Act, 1947 compels for payment of retrenchment compensation to retrenched employees. according to section 25F(b). The retrenchment compensation shall be 15 days of last drawn salary multiplied with number of years of service completed by an employee in the concerned organisation.

As a part of your full and final settlement in accordance to law, you are entitled to the following

1) Current month's full salary(1 march till 31 March).

2) Notice pay of 2 months

3) Leave encashment for leave accrued and due as of 31 March 2017.

4) Provident fund up to 31 March 2017

5) Gratuity- Including employer and employee contribution as of 31 March 2017.

6) Severance pay- 15 days of pay for every year of service contributed by you till 31 March 2017.

7) Service certificate

8) Good valid referral from your current manager.

Issue legal notices to your employer and demand all of the above mentioned points in your legal notice

Hope this information is useful.

Rajgopalan Sripathi
Advocate, Hyderabad
2173 Answers
394 Consultations

5.0 on 5.0

If you have been appointed by an appointment letter with conditions or employment offer letter, you may refer to the conditions of termination and continue to work and do not stop going to office without being issued with a termination letter.

Telephonic termination is not known to law and cannot be accepted.

Let them cite a reason to terminate you until which you should continue to attend the office otherwise they may terminate the services declaring you as an absconder.

You can escalate the matter to the top management and seek his intervention if you are not at fault.

If there is no response to your representation in writing to the management, you may resort to legal steps by first issuing a lawyer's notice advising them to reinstate you and then follow it through due process of law.

You should secure the evidence for any step that you may initiate in this regard. in future too.

T Kalaiselvan
Advocate, Vellore
85404 Answers
2236 Consultations

5.0 on 5.0

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