Termination of managerial employment
I am 52Yr Old Ex-Serviceman and an Engineer. I had been employed as a Full time employee for last 2.5 yrs with a Reputed 60 Yr old Pvt Company listed on NSE at Mumbai.
A year back, Company sold the Business in which I was employed as a going concern and transfered all the junior employees to the buyer as per Business Transfer agreement (BTA). I was heading the Business and was not transfered but retained by existing company and was given a new role as Business Head for another division. Now this new division had some legacy projects and is now closed for new orders. So company has asked me to quit with 3 month notice period as per my employment terms.
I am a General Manager. I tried to use the 3 month period for looking for a new job but couldn't find one - due to age.
I want to know :-
1. Can company terminate my services citing closure of business.
2. Why I am the only one who is being terminated while teh remaining Jr Managers and employees are not touched. CEO told me that as I am drawing a large salary, hence I should quit.
3. Am I entitled to severance pay or the 3 months notice period is enough
4. Do I have legal options in this case? If yes, what is best course?
5. As I had submitted by resignation under coercion, should I withdraw it and dare company to terminate me?
Please advice asap as only 2 weeks are remaining (30 Jun) for the 3 months notice period to get over.
Asked in Labour from Navi Mumbai, Maharashtra
1. The employment offer letter conditions will speak volumes about this.
2. You can issue a legal notice seeking explanation for this disparity and partiality shown by the company from one employee to another.
3. The severance pay may not be in the offer letter agenda,however you may clarify the same from the company rules. The benefits of being fired. This ends your agony about whether to stay or go; the company has made a decision for you. Though it’s not required to offer you severance, you may be able to negotiate for a package that can help keep you afloat until you land something new or start your own business.
4. Legal option for what, for remaining in service, you can approach labor commissioner
5. You can do so.
1)you have already given your resignation .your services have not been terminated
2) you would be entitled to salary for 3 months notice period as per terms of your appointment letter
3) best course of action is to leave the organisation on amicable terms .
4) once your resignation has been accepted by company you cannot with draw the same
1. It seems that the company is on the path of retrenchment which means to cut down, reduce, or diminish, curtail (expenses) or to economize; reduce expenses. Whether this is a case of retenchment or not will ultimately be determined by the content of the "Notice" served. If it says that the service of the employee is being terminated for reasons stated in the definition of retrenchment in the ID Act, then it will have to pay the retrenchment compensation.
2. Show the notice to your lawyer to get a comprehensive opinion.
Thanks for the quick responses. Below is my response to opinion given above :-
1. I am told that Managerial employees who draw more than Rs 10,000 pm doesn't come under ID Act 1947. So how can I take legal route under ID act? Chennai case of IT company details are not known to me but from the case summary, the software devloper is not a Manager so will come under ID Act as decided by the court.
2. I was not given any termination letter but was asked verbally to submit my resignation. I did that on same day for amicable reasons but I haven't recieved any ack from my boss (CEO) or HR about its acceptance. However verbally I was told that it is accepted. So I guess I can still withdraw it siting poor job market and allowing me to continue till I find a new job. Pl advise if this is OK or any complications may arise. I am OK for some bad blood. Also note that I had three appraisals in my job so far with this company and was rate 'Good'. So I am NOT being asked to leave due to performance issues. This was also told verbally when I was asked to quit. Reason given verbally was that we don;t have any suitable role now to which I didn;t agree as there are roles in another division where I had 5+ yrs of expereince and laterla hiring is expected. But I was told that they want to hire someone from industry.
3. As per my terms of employment, either party can terminate the services by giving 3 months notice. But I was verbally asked to resign which I have done. Is this coercion?
4. Also as per some HR managers, I was told that employee can withdraw resignation even on last day. But in my case, since company never acknowledged acceptance of my resignation, I am very well within my rights to withdraw it. Please advice legal view on this.
5. If after withdrawing, company issues me a termination letter wout assigning any reason, what legal remedies are available?
6. In your opinion, what could be the legal scenarios and how they will be played out between company, self and courts?
7. What is typical time courts take in such cases? Will court issue a Stay on my termination?
8. What are typical lawyer fees and court fees for such cases. Approx expenditure and time period?
9. Will any one of you will be willing to take my case?
Asked 10 months ago
1) you were general manager of the company and cannot claim benefit under ID act . it excludes inter alia any person who has been employed mostly in managerial or administrative capacity or in supervisory capacity
2)if your resignation has not been accepted you are at liberty to with draw your resignation
3)your resignation letter does not mention that you were resigned under coercion .
4)legally since resignation is not accepted you can with draw resignation
5) in case company terminates your services you would be entitled to 3 months salary
6)it is doubtful that court would grant stay on termination
7) legal fees vary . case may take some years to be disposed of
You are approaching this forum after having done a mistake of tendering your resignation seeking advise and further steps to be taken to secure or retrieve the job you have kicked out.
If your management had asked you orally to resign you should not have done that and could have insisted on the reason. This, is in my opinion may be due to personal vendetta by someone who would not have liked you continuing the job or may be management playing games.
You can issue a letter withdrawing your resignation and take an acknowledgment for that.
Let them reject your this application seeking withdrawal of resignation, you can start your legal war with legal notice and then follow it with necessary legal action including a writ petition if necessary.
The lawyer's fee and the time taken for disposal of the litigation cannot be predicted, it depends on various factors.
1. The fact is you have put in your resignation and without protest, after acceptance of which you cannot withdraw it. If the written acceptance has not been communicated to you then withdraw it through an immediate lawyer's notice.
2. Asking an employee to resign does not amount to coercion by any stretch of imagination.
3. Depending on the stand of the company after you issue a legal notice for withdrawal of resignation you may chalk out your further course of action.
4. The stay may be granted on termination if you can show that you resigned without free consent and withdrew it before it was accepted.
5. The lawyer's fee can be disclosed by him alone as the fee structure of lawyers is not uniform.
You are free to engage anyone from this portal.