SATHEESWARAN 23 October 2015

Right of the employee

Dear Lawyers,

An employee of a Private Ltd Company is facing the below mentioned situtaion, Pl give your expert advise.

Mr.A is employed with a Private Ltd Company for 5 months and he is really a good performer in the company. Management takes a call to ask that person to resign by paying 1 month salary as the company is financially weak. It should be noted that the company has hired new recruit and cancelled the Offer made before joining the company. Mr.A is searching for job in someother company but HR is declining that his service with the existing company is just 5 months and questions are raised on his stability. Please give your expert advise on legal action that Mr.A can take to defend the company considering the fact that Mr.A is an unconfirmed employee of the private ltd company and his average number of years in his past assignments was 2.5 years approx.

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2 Replies

adv.raghavan (Advocate,9444674980) 23 October 2015

If the contract says he can be fired by paying one month salary during probation period and he had accepted the same ,you can do little about that. If the company had breached any contract terms you can opt for legal suit against the company, but going by your statements, it will be a futile exercise only. It is better for A to look out for some other job rather suing a company which is financially weak and you are going to get nothing out of it, on the other hand A had to shell out considerable money in legal proceedings.

Kumar Doab (FIN) 23 October 2015

1. Record (audio/visual/witnessed/minuted) the demand of resigantion, promnise of payment of 30 dasy notice pay (by the company) and that company is financiallyb weak and hence has demanded you to resign.

If at all you have to submit submit notice of resigantion with 30 days or more notice (under proper acknowledgment, and must mention the correct reason in notice ) and you can withdraw the notice before expiry of notice period/LWD..................

2. Download record of good perfromance.

3. If the company is financialy weak and is heading for closure then company should ideally send notice...........................that it is not doing, to avoid legal complications. Or Probably it is indulging into cost cutting...................although by demanding resignation..................that is unfair and transgression.

4. Make the Line Managers/HR/Appointing authority/MD etc to agree that it shall post good comments in referencd check and mention that company is financially weak and has cancelled new recruyitments as well.........................................and obtain relievng letter with good comments.

5. Disclose the correct reasons to prospective employers and let them verify from Line Managers/HR/Appointing authority/MD etc......................................However you should mention the correct reason for leaving in employment application , and submit under proper acknowledgment and retain a copy.

6. Since you are amiable the current employer should coperate and help.