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Amandeep KT (Software Developer)     11 September 2015

Company asking for buy-out amount

Hello Sir/Madam,
I work with an IT Company in Jaipur, Rajasthan. My Employer gave notice of termination of services to 10 employees, the reason of termination was not mentioned, but our project manager told us, its layoff. 
The notice letter says, 'the last working day can be adjusted earlier on mutual consent'. Now, I asked my director to leave on 15 days earlier, my employer agreed for my early releasing. But they are now asking for buy-out amount and told me we will deduct your half salary(Gross salary). This was never communicated to me earlier.
Please, suggest me, if I m liable to pay the buy-out amount when the company has given notice to employees.
Looking forward for reply 
Thanks in advance 
 



Learning

 1 Replies

Kumar Doab (FIN)     11 September 2015

 

  1. The termination in your case is shown as ‘Termination Simplicitor’. If you do not work for termination notice period then employer shall not pay for notice period and shall pay till LWD. The employer may eventually agree to relieve on mutually acceptable date before expiry of termination notice period without asking for any buy out period claimed verbally by it.You may pursue.
  2. The lay off is different as the employer shall offer alternate employment, and pay lay off compensation.
  3. If employer is contemplating reduction in headcount then you may check if you can claim ‘retrenchment compensation’ as per ID Act.
  4. If you can build/record evidence that it is retrenchment it shall be of help to you.

 

IT companies in Rajasthan shall be covered by Rajashatan Shops and Commercial Establishments Act that was enacted to govern the service conditions of employees working in establishments covered by this Act.

Your labor Law consultant/Service Matters Lawyer/Law firm, IT/ITeS employees unions or Trade Union leaders may opine that you are covered by the def. of ‘Employee’ as in this Act and ‘Workman’ as in ID Act.

It is your decision to challenge termination or demand compensation, but you  should demand salary slips of all months, service certificate, relieving letter, PF number with a/c slips,ESIC card,NOC/NDC, FnF statement,FnF dues,Form 16 etc………….

 

You and all employees can contest the termination also and preferably under expert guidance of your labor Law consultant/Service Matters Lawyer/Law firm, IT/ITeS employees unions or Trade Union leaders approach:

Inspector appointed under Rajashatan Shops and Commercial Establishments Act, Payment of Wages Act

Highest Officials of Dept. of Labor

 

 


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