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 incase they don't wish to relocate no compansetion 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?
