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Yogila   01 December 2016

Termination of employment due to fund deficit??

Hello, Can a NGO employeed employee be terminated on grounds of funds deficit. I believe if there is funds deficit than just termination of few employees would not improve the situation as funds deficit does not mean some thousands rupees less, some Rs forty thousand less in a month say. Is it not injustice to select and terminate just on these grounds. I think if there is funds deficit than it should shut down which is not the case. Also can you enlighten me on compulsory staffing pattern of a shelter home (child) *. I would be very thankful as it involves around 4 employees employment.


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 21 Replies

Ms.Usha Kapoor (CEO)     01 December 2016

you engage private investigators(detective  agency)and findout as to whether there is real funds deficiency or not? Once you know the truth you can  confront them with facts and figures.Meanwhile tell your wife to search for another job.

Would you give me my profile likes  in exchnge for free legal advice?

 

Samarpan (M)99958670740 (Free legal advice and legal aid cell)     01 December 2016

Due to fund deficit, staff can be removed.  But Industrial Disputes Act, 1947 puts certain stringent conditions before terminating susch employees.  That termination is called 'retrenchment'.  Before retrenchment, every such employee shall be given one month notice or if employer does not have time to issue one month notice, he has to pay one month wages at the time of retrenchment.  If he has completed 240 days work in the organisation, he shall be given 15 days of wages for every completed year of service.  All these payments shall be made at the time of retrenchment of service and not later.  And most important thing is, if such retrenchment is necessary, only the juniors must be removed on the basis of "last come...first go" principle.  If any further guidance is required call us on telephone without hesitation. No. 9599874404

Kumar Doab (FIN)     01 December 2016

Is it the same query:

https://www.lawyersclubindia.com/experts/Employee-termination-on-fund-deficit-624561.asp

Suri.Sravan Kumar (senior)     01 December 2016

i AGREE WITH MY FRIEND SAMARPAN

Yogila   06 December 2016

@Ms Usha Kapoor: mam... Detective idea would not be feasible as the main employer party resides at foreign country... Too expensive an idea.. ;( @samarpan: quoting you, " If he has completed 240 days work in the organisation, he shall be given 15 days of wages for every completed year of service. " This sounds like gratuity except the completion of 5 years term. Can u please clarify. Is it different from gratuity factor?

Yogila   06 December 2016

@kumar Doab: I think so.... Not sure if my first forum was accepted..... I tried several times.... So may be it came up with different forums. Thanks.

Yogila   06 December 2016

Everyone please note i am mentioning about an employment in an NGO. I do not have any idea on the group of Labour Acts that rule the area of NGOs. Thanks.

Ritesh Maity (Labour Law Advocate)     06 December 2016

If the employees are 'workmen' then it will attract the provisions of I D Act and retrenchment compensation has to be paid @15 days for each completed years of service. Workmen has to be also retrenched following the "last come first go" basis i.e. the last person who joined the company has to go first. In certain cases (depending on number of workers and depending on state) permission of the labour authority is mandatory.  

Kumar Doab (FIN)     06 December 2016

The Andhra Pradesh Shops & Estbs Act provides for compensation @15days wages in case of termination ( other than Gratuity) and copy of ntermiantion is to be sent to O/o Inspector appointed under the Act.

Yogila   06 December 2016

@samarpan: Is 240 days of employment in an organisation valid besides the concept of GRATUITY for someone who have not completed 5 years of service.

Yogila   06 December 2016

@samarpan: Is 240 days of employment in an organisation valid besides the concept of GRATUITY for someone who have not completed 5 years of service.

Yogila   06 December 2016

@samarpan: Is 240 days of employment in an organisation valid besides the concept of GRATUITY for someone who have not completed 5 years of service.

Kumar Doab (FIN)     07 December 2016

Don't confuse the clauses of the A Shops & Estbs Act, on compensation as provided for in the Act, retrenchment compensation, Payment of Gratuity.All are distinct and differrent.

 

 

 

Kumar Doab (FIN)     07 December 2016

Don't confuse the clauses of the A Shops & Estbs Act, on compensation as provided for in the Act, retrenchment compensation, Payment of Gratuity.   All are distinct and differrent.

 


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