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Indian contract act

(Querist) 19 November 2012 This query is : Resolved 
Dear All

Is there any provision by which a company can restrict their employees if fired, on closure of company,to sue them?, Whats the best protection from being sued by the employee who has been fired by the company in process of their organizational closure.
V R SHROFF (Expert) 19 November 2012
Be clear. Organisation is employer of over 50 persons?? are they include Management Staff as well as workmen? It is a factory??
Were they Permanent employee?
Closure due to grounds beyond your control??

Usually there are no protection from being sued by the employee who has been fired by the company in process of their organizational closure.
Why poor Employee with their family should starve, It is against the Society.
y u want to encourage Organisation to do so?
Ruchika (Querist) 19 November 2012
Thanks Shroff sir for your reply, but i m not encouraging any company to do anything against te society. My concern is , one of the company is closing down its buisness due to grounds beyond their control, & company needs to terminate some employees with prior notice, but company also wants that after termination such employee cannot sue them back
V R SHROFF (Expert) 19 November 2012
Co Must pay them a reasonable VRS amount, or Good Luck.
It is a weaker section, and need sympathy.
Devajyoti Barman (Expert) 19 November 2012
Closure of company does not give any cause of action except for demand of arrears amount.
So do not think much about the improbabilities.
Raj Kumar Makkad (Expert) 26 November 2012
Shroff has represented my views on the subject as all aspects have been duly covered therein.


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