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Sumit (NA)     21 May 2013

Notice period & final settlement

Hi,

I worked in a software development MNC for 6 years from may 2007 to may 2013. On 2nd may my VP & HR head called me in a meeting & told that they don't require my services so i need to resign & i will be relieved me on same day. When i asked about my notice period they told that they will adjust my leave with the notice period or they will give me termination letter instead of relieving letter which means i need to pay for my notice period even though they are firing me. 

I gave the resignation letter to them & they provided me the resignation acceptance letter . I had around 100 privilege leave pending & my notice period was 45 days but with the final settlement also they didn't pay me remaining 55 days leave adjustment amount.

Its a quite big amount as 100 days means more than 3 months salary .even if i leave my notice period ,55 days is also almost 2 months salary (total 2 months salary will be around 1.75 lakhs).

I need to know what action i can take against the company.

Note: the company has done same for multiple employees till date.

regards

Sumit



Learning

 5 Replies

Chirag Bhagat (advocate)     21 May 2013

send me copy of your service contract and your resignation letter on my mail, than i will be assist you.

Sumit (NA)     21 May 2013

Hi Chetan,

The resignation letter was on paper not on mail as when they called me for meeting ,they closed my system. I was not even able to take copies of my latest salasy slips also. So i don't have any copy of my resignation letter.

regards

Sumit

Kumar Doab (FIN)     21 May 2013

 

 

You were located in which state?

The HO/Redg. Office of the company is located in which state?

 

 

This VP and HR-Head have tricked you and other employees.

The fresher’s, less experienced, ill informed, fearsome employees and those who do not consult before signing on the dotted lien get trapped.

 

You have posted that:

 

------“ which means i need to pay for my notice period even though they are firing me. “

 

This VP and HR-Head have misled you. If company is initiating termination, company has to tender notice pay.

 

Notice pay is tender by the party which is breaching the employment agreement.

It is bilateral agreement stated in appointment letter.

This VP and HR-Head have extracted resignation from you by exerting force, pressure, coercion, threat in office premises.

Forced resignation can be claimed as deemed termination. It is offence, unlawful.

 

You could have withdrawn the resignation by submitting a representation to good offices of appointing authority, MD, Chairman and charging This VP and HR-Head for having forced you to resign.

If all affected employees are determined and willing to join hands, all can be a witness to each other.

You may succeed in terming the action of company as lay off/retrenchment.

 

Termination: It may prove to be a gross error on the part of employer to Terminate without issuing charge sheet and conducting inquiry and thus without providing natural justice to employee.

 

You could have submitted notice of resignation with future date of resignation.

You could withdraw such resignation before expiry of notice. Had the company accepted it before expiry of notice period you could have agitated to withdraw the acceptance or company would have tendered notice pay if it was acceptable to you.

 

Supreme Court of India

Nand Keshwar Prasad vs Indian Farmers Fertilizers ...

 

“11. After giving our careful consideration to the facts and circumstances of the case, it appears to us that the law is well settled by this Court in a number of decisions that unless controlled by condition of service or the statutory provisions, the retirement mentioned in the letter of resignation must take effect from the date mentioned therein and such date cannot be advanced by accepting the resignation from an earlier date when the employee concerned did not intend to retire from such earlier date. It has also been held by this court that it is open to the employee concerned to withdraw letter of resignation before the same becomes effective.”

 

 

-----“ they told that they will adjust my leave with the notice period ‘

 

The company can waive off the notice period and notice pay.

If you wanted to oblige this VP, HR-Head you could have made them to write in the acceptance of resignation letter issued to you on the spot or copy of your resignation

( even if by hand that the notice pay is being waived off), in line with the verbal agreement reached with you during the meeting.

 

 

------“ but with the final settlement also they didn't pay me remaining 55 days leave adjustment amount.”

I

 

The leave rules for paid leave are in line with Factory Act, Shops and Commercial Establishments Act of the state.

The employer can frame his leave policy providing better leave benefits. So you may check the leave rules, paid leave accumulation as per leave policy and as stated in appointment letter, standing orders of the company.

In your case (name of your state) Shops and Commercial Establishments Act, should apply.

 

e.g. In case of Delhi: It is 15day/annum and can be accumulated 3 times i.e.45 days.

 

Thus these shrude, cunning, VP, HR-Head has squared off your paid leave against notice pay and denied you 55 days leave enachment and they may claim that it has lapsed.

However it is reiterated that you may check the leave rules, HR policy, appointment letter, standing orders…….

 

 

Have you signed the acceptance of FNF statement?

 

Has the company paid Gratuity to you?

 

Has the company issued the relieving letter to you?

 

 You can demand the copy of the resignation collected from you.

 

The designation alone does not decide employee is a workman or not.
Your lawyer may ask you a set of structured questions and may opine that you fall within the category of workman.

You may go thru the standing orders of the company/model standing orders……

 

You may also approach some senior trade union leaders, community leaders also. They know the precise and effective ways to drill sense into the heads of such personnel and employers.

You may approach a competent and experienced labor consultant/service lawyer as ap, show all documents, give in person and proceed under expert advice of your lawyer.

 

Trade Unions/Forums for IT employees;

 

West Bengal Information Technology Services Association (WBITSA):

https://www.wbitsa.org/

 

 

https://www.itecentre.co.in/

Contact Us

Please contact us on
mail id : contact@itecentre.co.in.
ph : 9620907912

Please Join ITEC group for discussion among IT-BPO employees. To join the group, please send a blank mail to itec_bangalore-subscribe@yahoogroups.com

 

https://ithiworld.wikispaces.com/News+Update

ITHI, a forum
of women employees in IT and ITeS

 

 

 

Try your level best and organize the IT workers for your own benefit.

You may find the attachments useful.

The proposal to forge a union for IT workers has now come from the Centre for Indian Trade Unions (CITU) -- the trade union wing of the Communist Party of India (Marxist) -- the largest Left party in the country.

"A union for IT workers is the urgent need of the hour. I would call the IT professionals 'the labourers of the information age.' They toil long hours; they work at night; and some of them still get meager salaries. So a labour union for them would help fight for their rights," CITU president M K Pandhe toldrediff.com.

According to Pandhe, the main reason why CITU has mooted the idea is because the IT industry is not governed by any labour laws. "The IT industry continues to chart remarkable double-digit growth. But isn't it ridiculous that the IT workers are working hard without the backup of any labour laws?" he asks.

"Workers in the IT and ITES industry work for 10 to 14 hours daily. There are no fixed timings for them. The moment the IT professionals get together to discuss their problems at work, the management victimizes them and they are shown the door," Pandhe pointed out.

To begin with, CITU, in collaboration with other Left-unions -- like the All India Trade Union Congress, want the Union government to enact a law separately to deal with the labour issues of the IT industry.

"Yes, there is an urgent need for a labour law exclusively for the IT industry. It is the one sector that is booming across India, and we need to frame a legislation for IT workers. We are going to take up the issue with the Manmohan Singh [ Images ] government soon," said Community Party of India national secretary D Raja.

"IT industry professionals in India are 'cyber coolies.' We are trying to organise them and convince them on the need to form a union to fight for their rights and jobs protection," said Narayan Ram Hegde, who works for the Union of Network International in India.

 

 

Sumit (NA)     21 May 2013

Hi Kumar,

I am located in Bangalore,Karnataka. Company headquarter is in US & their local office is registered in Bangalore. Below are the answers to your questions:

 

Have you signed the acceptance of FNF statement? No

 

Has the company paid Gratuity to you? Yes

 

Has the company issued the relieving letter to you? yes

 

The resignation acceptance letter provided by company says the notice period will be adjusted with my leaves .

 

regards

Sumit

Kumar Doab (FIN)     21 May 2013

 

.

Mr. Bhagat has given valuable advice. Kindly follow it.

Karnataka Shops and Establishments Act:

 

15: Annual Leave with Wages: Look into clause 1, 7 , 14………

 

39. Notice of Dismissal: 1 month.

 

{The notice higher than this is obviously for the benefit of employer.}

 

 

However it is reiterated that you may check the leave rules, HR policy, appointment letter, standing orders……

 

The state of Karnataka has ended the blanket exemption granted to IT/ITeS companies from the provision of IESO Act and all companies were to submit draft standing orders by Dec2012 for certification by Mar2013.

 

Employee and anyone can obtain the certified copies of standing orders from Certifying Authority which is DLC in o/o Labor Commissioner at location redg. office of company, by paying a fixed fee.

 

 

 

You have posted that:

“The resignation acceptance letter provided by company says the notice period will be adjusted with my leaves.”

 

Since you have not accepted the FNF statement you may succeed in raking up the issue for waiver of notice pay or forced resignation as deemed fit at your end.

 

You may approach a competent and experienced labor consultant/service lawyer as ap, show all documents, give inputs in person, spend quality time with your lawyer and proceed under expert advice of your lawyer.

Let the opinion of your lawyer who has seen all of your docs and has analyzed the merits be final.

The list of trade union in Karnataka, labor officials is attached.


Attached File : 287881321 karnataka%20shops%20and%20commercial%20establishment%20act.pdf, 287881321 trade unions in karnataka.doc, 287881321 list of labor officials in banglore.doc downloaded: 164 times

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