Manoj 23 March 2016

Severance pay

Dear Sir, I was employed by an MNC regd in Dubai in Mar 2015, having two partners. One Indian and the other foreigner. I was personally selected by Indian partner and appointment letter issued by him with terms of engagement of termination/mutual separation/notice period of 90 days within Indian jurisdiction etc. I was heading the Indian Ops located in Mumbai. In 05 Jan 2016, the foreign parner sent a mail stating that the company would close down on 29 Feb 2016. But the Indian partner assured me on phone that he would absorb me in his sister concern in India itself. So I continued to work diligently. I have transcriptts of Skype chat available with the Indian Partner/Director whrein I have apprised him of this development. On 14 Feb 16, however, he went back on his word and said that none of the employees would be abosrbed. The company closed down on 29 Feb 16. I have asked for severance pay of 75 days which he is refusing to pay. As my original terms of engagement signed by him in India was for 90 days notice period, he has effectually given only 15 days notice on Skype msg. Therefore am I not entitled for Severance Pay for 75 days? Please advise.

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5 Replies

Kumar Doab (FIN) 23 March 2016

The company has already closed down as per you.

Was the compnay not registered in India? Has Indian entity been closed, by notice to labor commissioner?

YOu may ASAP consult an able counsel specializing in service matters and understand the civil and criminal complaints route to your recourse.

What is severnace pay mentioned in appointment letter in ncase of closure?

Manoj 30 March 2016

Dear Sir,

As I mentioned, company was regd in Dubai. But had an office in India where Indian employees were hired by interview and appointment letter were issued by the Indian Director. There was no notice given to Labour commissioner. My query is :-

a) In the appointment letter alongwith terms and conditions, my service conditions and terms of engagement was to maintain a notice period of 90 days by both the parties ie the employer and the employee. No there was no mention of Severance Pay.

b) In a case of separation then either party had to compensate for 90 days or less if the period of notice was less than 90 days. In my case, I was given only 15 days notice that I will not be absorbed in a Indian Subsidiary in Mumbai.

c) All along, since 06 Jan 16, The Indian Director kept assuring me that he would absorb me in a sister concern which is regd in India. Transcriptts of Skype chats are available with me.

d) Therefore as my Appointment letter, am I not entitled for compensation(severance pay) of 75 days?

Warm Regards