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lax (Active Member)     21 November 2012

Under which law company can go for layoff

Hi,

One of my frined working in an US MNC runnig IT outsourcing business in India. Parent company is US based and the company which is doing business in India is an associated company registered in India under the name of xxx India Pvt. Ltd. (I do not want to disclose the name of that organisation). Business of the comapny is IT outsourcing, taking operations/service contract from various clients for fixed contrat basis.

My friend has been hired by the company in 2007 on permanent basis on payroll of xxx India Pvt. Ltd. He has been put on a project which was for five years. Now the project is in the termination phase. Past histry on the project is such that whenever any reduction in manpower is required by the company they ask employee to leave the organisation & people leave by resigning & all sattelment gets done base on regisnation.

If somebody resist to give resignation company threatens that they will terminate the service and do not sattle the dues & will even not give experience letter. My frined is quite senior in position and completed five years in the organisation. He was top performer for many years and won many national/international level award within organisation.

Now as peoject is nearing end again the company will try to reduce the work force. Company has a policy of 'Reduction in Force' which they take as a basis of Layoff. My friend want to know whether company has leagal rights to layoff a person/persons who has permanent employement in the same organisation. What advice legal expert can give so that his job gets secured from hanging sword like Layoff. Can this be chalenged in court of Low if company go for Layoff just due to closure of one project but company has may more project (business) in India and services of employees are transferable all over in India as per the offer letter.

My friend resides in Mumbai, kindly suggest a exper Lawyer to persue this case if Layoff happens.

 

 

 

 



Learning

 1 Replies

Adv. Nikhil Seth (legal consultant (9867264707))     21 November 2012

currently your friend is employeed in the company , till the point he is not layed off , he is safe . If he is layed off than one should look for appointment letter all terms and conditions are clearly mentioned in the appointment letter . if company lays him off on what grounds he is being layed off . If he is performing excellent than company will not lay him off . Still he can fight back if he is layed off for no good reason and the same reason is not mention in appointment letter for termination of services . For this his appointment letter details will play significant tole in his layoff .

 

Adv. NIKHIL SETH

Mumbai


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