• Termination of managerial employment

Dear Sir.
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 6 months ago 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.


T Kalaiselvan
Advocate, Vellore
13964 Answers
127 Consultations
5.0 on 5.0
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 
Ajay Sethi
Advocate, Mumbai
23155 Answers
1216 Consultations
5.0 on 5.0
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.
Ashish Davessar
Advocate, Jaipur
18083 Answers
447 Consultations
5.0 on 5.0
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 
Ajay Sethi
Advocate, Mumbai
23155 Answers
1216 Consultations
5.0 on 5.0
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. 
T Kalaiselvan
Advocate, Vellore
13964 Answers
127 Consultations
5.0 on 5.0
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.
Ashish Davessar
Advocate, Jaipur
18083 Answers
447 Consultations
5.0 on 5.0
You are free to engage anyone from this portal.
Ashish Davessar
Advocate, Jaipur
18083 Answers
447 Consultations
5.0 on 5.0

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