Organisational restructuring
Vijaya Bhaskar
(Querist) 01 May 2020
This query is : Resolved
Dear Learned Expertise,
We are Charitable organisation working among people with disabilities
We have lost two prospective funding agencies or foundations, whose contribution or donation was more than 50 % of our annual budget. We do not have new granting foundations that can come forward to support us during this global economic crises
We have insufficient funds which will support only for few months (2-3) and we don’t know what will happen after the funds are exhausted and raising funds locally is a big challenge in this current situation.
it is inevitable that the organization has to make certain hard decisions resulting in reducing its workforce, though the organization has no such intention to do so which is painful to all of us. This is the first time in the history of the organisation.
However, the organisation is willing to serve one month notice to the contract staff with pay and allow the staff to find the job during notice period necessarily not working.
-And also try and assist in outplacement (finding an alternative job).
-Will provide a strong letter of reference or recommendation along with experience certificate that will help add to the testimonials to get job opportunities
-If the finances are stable, we would be glad to give preference and re-employ
-We assure our full support and cooperation on getting PF contributions from EPF office.
Queries are as follows:
1.Can we proceed by serving one month notice to contract staff and pay the notice period which is in the contract
2.What about confirmed staff, can we give one month notice with pay which is in the appointment letter.
3.What are the feasible options available to reduce permanent workforce which is painful to all of us.
4.Which governing guideline should we follows while reducing the workforce (shops and establishment or industrial disputes act)
5.Can we serve the notice on a day which falls to a be national holiday.
Your suggestions and guidance would be a great help for further process.
Raj Kumar Makkad
(Expert) 01 May 2020
1. Yes. You may proceeed as desired.
2. Yes. You may move ahead as the same is in accordance with the terms of the appointment.
3. Whatever you have decided and mentioned in the query is the sole feasible way to reduce the workforce. Mention all the circumstances in the notice leading to reduction and further opportunity to prefer in the job if the organization again becomes viable.
4. It shall depend upon the class of workforce employed. Workman is covered under the provisions of ID Act whereas the persons employed on managerial posts are covered under civil law.
5. Yes. There is no specific bar to do so.
Vijaya Bhaskar
(Querist) 01 May 2020
Thank you so much Makkad Sir for instant reply. I am so sorry to miss in my query that the confirmed staff are serving one is 12 years and another is 20 years.
Should we anticipate any repercussion from the staff for the one month notice for having served for so many years. We are little concerned what if the staff create any issues.
Raj Kumar Makkad
(Expert) 01 May 2020
You have not mentioned the category of both of those employees. If both of them do fall within the category of the Labour, they are also entitled for the grant of retrenchment compensation equal to 15 salary for every completed year during thier service.
Vijaya Bhaskar
(Querist) 01 May 2020
Sure Sir,
One is Manager drawing 22000/-
Other is Coordinator drawing 18000/-
In case of Retrenchment, is only Basic and DA considered or even other allowances are considered
Raj Kumar Makkad
(Expert) 01 May 2020
Basic and dearness allowance only is taken into consideration while computing the wages for the purpose of retrenchment compensation.
KISHAN DUTT KALASKAR
(Expert) 01 May 2020
Dear Sir,
I respectfully fully agree with detailed answers given by Mr. Expert Raj Kumar Makkad
Rajendra K Goyal
(Expert) 02 May 2020
You said:
1.Can we proceed by serving one month notice to contract staff and pay the notice period which is in the contract
Reply:
You can proceed, provided it is in accordance to the terms of contract employment.
Rajendra K Goyal
(Expert) 02 May 2020
You said:
2.What about confirmed staff, can we give one month notice with pay which is in the appointment letter.
Reply:
Yes, is the reply, provided it is not in contradiction to the terms of appointment.
Rajendra K Goyal
(Expert) 02 May 2020
You said:
3.What are the feasible options available to reduce permanent workforce which is painful to all of us.
Reply:
No other alternate, but to fire them.
Rajendra K Goyal
(Expert) 02 May 2020
You said:
4.Which governing guideline should we follows while reducing the workforce (shops and establishment or industrial disputes act)
Reply:
You must follow laws in force including above. Main part is the terms of appointment / contract
Rajendra K Goyal
(Expert) 02 May 2020
You said:
5.Can we serve the notice on a day which falls to a be national holiday. Your suggestions and guidance would be a great help for further process.
Reply:
You can serve.
Rajendra K Goyal
(Expert) 02 May 2020
You said:
the confirmed staff are serving one is 12 years and another is 20 years. Should we anticipate any repercussion from the staff for the one month notice for having served for so many years. We are little concerned what if the staff create any issues.
Reply:
Chances of repercussion is always possible. If you have moved in term of appointment / contract nothing to worry.
Rajendra K Goyal
(Expert) 02 May 2020
You said:
One is Manager drawing 22000/- Other is Coordinator drawing 18000/- In case of Retrenchment, is only Basic and DA considered, or even other allowances are considered
Reply:
Refer the appointment terms.
Raj Kumar Makkad
(Expert) 02 May 2020
The termination letter shown to me is in accordance with the concerned terms as contained in ID Act and accordingly the same may be served upon to both the concerned employees.
Raj Kumar Makkad
(Expert) 02 May 2020
It shall also be better to annex the cheque of last salary and retrenchment compensation with the notice so that it may duly be conveyed to them.
Raj Kumar Makkad
(Expert) 02 May 2020
You may also relieve them immediately by paying the aforesaid dues so that those may not create any problem during their employment with you and may not get the stay order from any court of law.
Raj Kumar Makkad
(Expert) 02 May 2020
You should immediately relieve with full and final settlement to avoid further problem from the side of such proposed retrenching employees.
Rajendra K Goyal
(Expert) 03 May 2020
If the termination letter has been shown to expert, it can be served as guided by the expert.
Mention and attach retrenchment payment / notice charges cheque with the termination order.
Rajendra K Goyal
(Expert) 03 May 2020
It is once again advised to refer the terms of contract employment / appointment before sending the termination letter to avoid any legal hurdle from them at later stage.
Raj Kumar Makkad
(Expert) 03 May 2020
Believing upon the expert and even then advising more and more shows the contradictory stand on the part of one of the experts.
Raj Kumar Makkad
(Expert) 03 May 2020
Termination letter shown to me contains all necessary ingredients which ld. experts have advised so nothing remains to worry.
Rajendra K Goyal
(Expert) 04 May 2020
If the termination letter is vetted by expert as mentioned by him, nothing more changes needed in it.
The expert has good experience and knowledge for guidance in the matter.
Rajendra K Goyal
(Expert) 04 May 2020
Sometime in legal matters, most intelligent lawyer leaves some important points by mistake / take stand which result fatal for the case. However, any positive advice should not be taken otherwise.
