Company laying of employees
Hardik Desai
(Querist) 26 October 2012
This query is : Resolved
The company is an IT company and its current practice is that in case it does not require employees then they put them on bench and pay salary to employees for 3 months and then stop paying them thereafter saying that no work allocation has been done for more than 3 months hence no salary will be paid but employee will be on payroll till he himself resigns. Whether this is legally correct? There is no agreement between the employee and the company for such terms and conditions
Further the rumors are that the company will be shifting its operations to another location and at that time will lay off employees whom it feels are not required without any compensation and to others it will give option for relocation if they wish to and in-case they don't wish to relocate no compensation will be paid .The company is profit making and listed company and closing down operations at this location is just business decision.
The appointment letter wordings for reference are as follows :
During your employment with the company ,you will be liable to be transferred or deputed to any of the offices,departments of the company or its associates,subsidiaries or group companies whether in india or abroad
In the event of transfer or deputation of your services your salary and other benefits will be determined in accordance with the company's policies prevalent at that time
Are the actions of the company correct and as per law ?
What rights does the employee have to safeguard his /her job and what are the remedies available ?
Whether a company can lay off employees without paying for any compensation?
ajay sethi
(Expert) 26 October 2012
what is the clause in contract as to termination of employees . does it provide that in case employee is terminated company will be liable to pay ____ salary .
in your case the employees are submitting resignation letter on their own accord . the employees should not submit resignation letter . let the employer terminate theoir services .
V R SHROFF
(Expert) 26 October 2012
If employee is workmen, He is protected.Let trade union handle r matter.
If in Management category, it is advisable to follow direction of higher management, collect ur benefit & resign. They may terminate u without any payment.
ajay sethi
(Expert) 26 October 2012
Termination is to be done following certain formalities mentioned in the Industrial Disputes Act or the Standing Orders of the company. before terminating an employee, he should be given notice of the intention of the company to terminate him with reasons thereof. Termination for misconduct requires service of charge sheet and conduct of domestic enquiry etc. A terminated employee should be paid compensation as prescribed under the ID Act.
Hardik Desai
(Querist) 26 October 2012
Dear Sir ,
The company is not terminating the employment of the employee they keep them on their payroll but do not pay any salary till the time the employee himself resigns.This is forceful resignation is a way.
ajay sethi
(Expert) 26 October 2012
the employees must come together and refuse to resign . if company does not pay salary yet employee is in pay roll of the company then employees should not resign . proceed legally for payment of salary .
M V Gupta
(Expert) 28 October 2012
Keeping the employee on payroll and not paying salary is illegal. Such employees are entitled to claim salary. If the Company does not want to pay salary, they have to terminate the employee from the service as per contract of employment or the staff rules, if there are any.
