Are companies always liable to pay notice period amount?

You are in which state?

What is this MNC: commercial or industrial establishment?

Is it an It/ITES company?

Company must have displayed its registration certificate near entrance on notice board.

What is the designation and nature of duties of the employee.

You have posted that:

-----“My wife is working in a MNC for almost 2.6 years and due to internal politics of some team member she was put into the bad performer list.”

The performance parameters, KRA’s in good companies are well defined, and are usually measurable.

Relate the performance with scale and matrix and if she is willfully placed in Bad Performer list with malafide intentions register the grievance in writing under acknowledgment ( with a copy to self)  with good offices of appointing authority, MD, Chairman, Company Secretary, Head-HR, authority for Grievance redressal citing specific incidences and be precise and concise. Highlight that HR has stated that Manager has set the date and HR has thus declined to resolve the matter. Therefore you are left with no other alternative but to first escalate within the company. 

----“fter her performance evaluation meeting she was told to look for other project within company or in case if she dont get a job she will be terminated in one month time. “

It is almost certain that the company has PIP policy and within the framework of the policy employee is to be an opportunity to look for alternate placement.

Download this policy from HR portal/employee portal.

This is like looking for another job within the company and thus initiating the process of termination.

Request the good offices to allow to examine the personnel file of the employee being maintained by the company.

----“As per Performance correction policies she should have got two month of time before she can be separated. Also, as per appointment letter, she should get two months of notice.”

She is of course eligible for 2 months even if she is put into list for Lay Off.

----“However, her manager said she will be terminated from the job within a month only. Company is also not ready to compensate one month of notice.”

Company shall have to tender the notice pay for shortfall in notice period.

Since the manager is the offender in future if the need be issue a notice to him also by name.

-----“When she asked to HR about this, they said they have given the date after all consideration and last call is with Manager.“

Report it in your representation to good offices in writing under acknowledgment with a copy for personal file at home.

----“I am not sure how to handle the situation.  Should we take a legal action on this? If yes, then how?”

Do not limit yourself to HR/line management and approach good offices.

Defend your employment and employability.

Build favorable record.

This manager seems to have become vindictive, zealous, adamant, recalcitrant….and you need to act firmly.

If nothing works secure at least 2 months time, and firm up next venture.

If the company is conscious and having good HR practices, the good offices shall act and undo the wrongdoings of the manager and this manager shall become a marked man, and may be shown the exit door.

Designation alone does not decide the employee is a workman or not.

A competent and experienced labor consultant/service lawyer may ask a set of structured questions and may opine that employee falls within the category of workman.

In the meantime you may download the Standing Orders of the company (to be displayed near entrance on notice board), HR policy, service rules, Exit Policy, severance Policy, lay off rules, PIP policy, and put the stinkers/notices, show cause notices, verbal challenge communications, your replies, in order…….and approach a competent and experienced labor consultant/service lawyer, give inputs in person and proceed under expert advice of your lawyer.

Thanks a lot Kumar for your suggestions..

We are located to Pune, Maharashtra and Company is an ITES.

Now, if we approach "Good Offices" and they dont listen to our points then in that case should we go ahead with legal notice or is there any other way?

It shall be appropriate to approach A competent and experienced labor consultant/service lawyer at Pune now, show all documents, appointment letter, HR policy, service rules, Exit Policy, severance Policy, lay off rules, PIP policy, and put the stinkers/notices, show cause notices, verbal challenge communications, your replies, give inputs in person and prepare for the representations to be submitted to good offices (under acknowledgment by redg. post)  now and later, and proceed under expert advice of your lawyer.

Your lawyer can help you to understand the merits in your case and to choose the appropriate forum e.g. legal notice, demand notice for conciliation with conciliation officer in o/o Labor Commissioner, Labor Court, case under Shops and Commercial Establishments Act of the state, civil court…………

On line discussions have its own limitations.

 Pune is abig city and you can access good lawyers.

 Let your lawyer's opinion (who has seen all of your docs and analysed your inputs) be final on all points discussed in this thread. 

It is felt that IT/ITES companies in Maharashtra were granted exemption from the provisions of Industrial Employment Standing Orders Act. However you may check with DLC in local o/o Labor Commissioner.

If this company is located in SEZ, IT park you may relate to SEZ policy and IT policy of Maharashtra also. IT companies are covered by Shops and Commercial Establishments Act of the state.

Industrial Employment Standing Orders Act, Model Standing Orders Act, SEZ policy and IT policy, Shops and Commercial Establishments Act of the state, contact details of the DLC, Inspector under SE Act of state must be available at Dept. of Labor website of Maharashtra.

Bombay Shops and Commercial Establishments Act is so employee friendly, that it can cover your issues.

38. Application and amendment of the Payment of Wages Act.

(l) Notwithstanding anything contained in the Payment of Wages

Act,  1936, (V  ?f

1936)………. the Inspector appointed under this Act shall be deemed to be the Inspector…herein referred to as "the said Act",…….for the purpose of the enforcement of hei provisions of the said Act within the local limits of his jurisdiction.

( Implies that the Inspector under SE Act shall be the Wages Inspector )

[?8 ?. Application of Act VIII of 1923 to employees of establishment.-The provisions of the Workmen's Compensation Act,  1923  (VIII  of  1923),  and the rules  made from time to time thereunder, shall,  mutatis mutandis,  apply to employees  of  an establishment to  which this Act applies, as if they were workmen within t! meaning of the Workmen's Compensation Act, 1923.

( Implies any employee under SE Act shall be eligible as if he is a workman and can invoke WC Act)

^[??-?.  Application of Industrial Employment (Standing Orders) Act to establishments.-The  provisions of the Industrial Employment (Standing Orders) Act,  1946,  in its application to the State of Maharashtra [(hereinafter in this section referred to as "the said Act"), and the rules and standing orders (including model standing orders) made thereunder from time to time, shall,  mutatis rnuimdis,  apply to  all establishments wherein fifty or more employees are employed and to which this Act applies, as if they were industrial establishment within the meaning of the said Act.

(Implies if company is under SE Act and if it has not framed its standing orders the model standing orders shall apply to all employees. Model Standing Orders are attached. You can also download from Dept. of Labor Maharashtra/Bombay website also. Thus while you can approach Inspector under SE Act you should also be eligible to approach Labor Inspector/ALC.)

{ Model Standing Orders: 3.               Tickets,  11.         Payment of wages,  13.       Termination of employment,  15.      Complaints, 17.  Liability of 17[employer].--, 18.          Exhibition of standing orders.-)

51.    Employer [and manager  to produce registers, records etc.  for inspection.

( Implies that if you lodge a complaint the Inspector can not check all records, your personnel file but can take these to his office. You may obtain certified copies and even peruse RTI route.)

Moreover the Inspector is under obligation report every two months as given in Sec.66

55.    False entries by employer and manager.

58.    Determination of employer for the purpose of this  Act.

66. Notice    of termination of service

 --In the meantime kindly go thru the attachments.

Valuable advice of learned experts is sought.

Thank you again ! I will follow up on your suggestion.