One of my friend has been appointed by a Private Limited company of a big group in India and his appointment letter sates that he will work till retirement at the age of 58, with an option of 3 months notice for termination from either side. Now the company is in the process of terminating employees saying that they made a mistake of large scale hiring but now wants to correct it through retrenchment. I request you to please clarify the following :
1. Can he insist that he should be allowed to complete 3 months notice period or the employer can terminate by giving 90 days notice pay (Basic pay only) as it is not his fault.
2. Is the Employer required to give the reason for termination/retrenchmnet.
3.The company wants him to resign voluntarily but he does not want to resign as there is no immediate job/offer in hand, in case he gets 3 month's full pay by giving only the notice/intention to resign, he can finacially survivie till he gets a job. Is there any provision to buy time or be reasonale.
4.Alternatively can he ask the employer to terminate him instead of his resigning voluntarily as he will get the reason in writing, in such a case is he entitled for full pay or notice pay
5.Kindly advise how to handle this situation as the company in earlier occasions ( last year) permitted few employees to continue for 3-4 months in job with full pay / paid 3 months full pay without attending the office.
Thanks & Regards