• Employees asked to quit

Hi, 

Have a question. My organization has taken a current call to shut down the business units and have asked the employees to leave the organization with compensation offered.
I have been working In the system for only eight months now but they have not send any confirmation letter also after six months. The hr is claiming my employment is still in probation and I will be offered only one month salary which itself is high and as per contract for a probation employee it is only seven days. 

I had claimed that if I was in probation then after six months I should have received an intimation that the probation still continues or else it automatically implies that the employment is confirmed and as per the contract we should be paid two months salary for confirmed employees now the company is not agreeing to the terms 

On the first place throwing out an employee and shutting down a division is wrong. On top of it they don't even want to pay two months salary can there be some legal action filed against them.
Asked 8 years ago in Business Law

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8 Answers

1)it is necessary to peruse terms of your appointment letter

2) if there is maximum period of probation prescribed on completion of probation period your services would be deemed to be confirmed unless probation period is extended

3) it is not necessary that you should receive formal letter for confirmation

4) you should be entitled to 2 months salary as you are confirmed employee

5) refuse to resign .

Ajay Sethi
Advocate, Mumbai
99779 Answers
8145 Consultations

employees should refuse to resign .

let employer terminate their services

3) if satisfactory compensation is offered then only should you resign

Ajay Sethi
Advocate, Mumbai
99779 Answers
8145 Consultations

1. In contrqctual job neither arty ahs any firm rights and obligations.

2.You can no force the company to continue if it has decided to shut down its shutters.

3. Now if there is job contract which prescribed automatic confirmation after six months you are entiled to 2 months salary.

4. Otherwise you are to receive one month salary only.

Devajyoti Barman
Advocate, Kolkata
23653 Answers
537 Consultations

you are permanent employee on expiry of probation period

2) if employer wants to terminate your services he has to give 60 days notice or pay salary in lieu of notice period

Ajay Sethi
Advocate, Mumbai
99779 Answers
8145 Consultations

It will be deemed treated upon expiry of your six months probation period and like other regular employees, the co. is bound to give you two months salary in lieu of immediate termination.

The very fact that you were continued beyond the period of probation is sufficient to prove that the co. found you fit for employment. Had that not been the case, they would have shown you the exit gate immediately upon completion of the probation period. No formal regularisation order is necessary.

Send a legal notice staking your claim.

Vibhanshu Srivastava
Advocate, Lucknow
9763 Answers
323 Consultations

Hi

1) Since you have been employed for about 8 months and given the fact that as per terms of your appointment letter, the probation period is for six months, you will be a permanent employee in eyes of Law as you have worked beyond the stipulated probation period.

2) Your Human Resources Department cannot take umbrage on the guise that you remain a probation employee till your employment is confirmed.

3) The legal position is that Confirmation of an employee as Full time employee in writing is NOT Mandatory in eyes of law whereas in contra, if an employee is continued to be in Probation, it is mandatory that the employee be informed in writing that his services are NOT Confirmed and that his probation period is extended and in the said letter, the employee's consent for extension of probation must also be obtained in writing.

4) Since you have been employed for 8 months which is 2 months over and above the probation period, it is an automatic confirmation that you are a permanent employee.

5) In your case, though it is an "At-Will" Employment where in either side is liable to give 60 days notice or pay in lieu thereof, by default, the company is liable to pay you (Since you are yet to complete 1 year) the following as full and final settlement

a) Monthly salary till last day of working and

b) 60 days notice pay (full salary+P.F, and NOT Basic pay)

6) Also if there are more than 20 employees in your organisation which is being shut down, the company is liable to pay additionally 15 days basic pay for every year of service rendered by an employee (however this might not be applicable to you as you have only 8 months service in the company.

Hope this information is useful.

Rajgopalan Sripathi
Advocate, Hyderabad
2173 Answers
394 Consultations

Sir,

If you are not communicated about your employment after probationary period is tends to be you are made as permanent employee.

You can issue legal notice for proper compensation as they are closing their business.

Thanks,

Niranjan,

Mobile/whatsapp - .

Niranjan
Advocate, Bangalore
844 Answers
9 Consultations

after 6 months a new agreement will follow vide which you will be treated as permanent employee.

You can serve them with a legal notice and then you can file a case either in civil court for specific performance of contract or you can file a case in the labour Court

Anilesh Tewari
Advocate, New Delhi
18103 Answers
377 Consultations

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