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Pankaj Kumar Prasad (service)     18 July 2010

can services be transferred to another company

Hi,

A private company engaged in insurance business has decided to outsource it entire back end operations to a vendor. It's being said that services of all barring a few select back end ops employees(not workmen) will be transferred to that vendor. For an individual employee point of view

1) Can this decision be challanged in civil court as violating the contract of service which does not contain such stipulations,

2) Can the Company remove services of the employees on the pretext of  'redundancy of job', if so can employees claim compensation,

3) If answer to point 2 is yes, what will be quanification of the compensation

4) The terms of employment contain a clause to the effect that services may be transferred to group companies. Can this be revoked as matter of right? 

regards,

 



Learning

 3 Replies

Pankaj Kumar Prasad (service)     20 July 2010

Thanks for the reply. However, just to re-iterate what if the concerned employees are not workmen as defined under ID Act. As such jurisdiction of labour court is ruled out at least for manegerial class. Can for them the basic instrument of contract of service be revoked to claim for compensation and damages as the Company is resorting to a practice not disclosed earlier.

regds


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