Winding up a subsidiary company
We work in a govt. company, which is a subsidiary of another govt company. Due to loss making in nature the holding company may close this subsidiary company. We are 5 employees who are permanent in payroll of the subsidiary company. Both the companies comes under Department of Public Enterprises.
If the subsidiary company gets close, will the employees are sacked by holding companies? What are the references we have to protect us and what are the possibilities will would be considered as employee of the holding company if this subsidiary company is closed down in near future.
Asked in Labour from Raipur, Chhattisgarh
1. Subsidiary Company is a seperate Company by its own standing,
2. The holding Company has share in it,
3. Normal course, you will be offered VRS for quiting & if you do not take VRS, you may be transferred to remote places on transfer which will make you agreeing for the VRS proposal,
4. PSUs can be equally nasty for the workers in comparison to Private Sector Companies.