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wilfred (scm)     21 July 2014

Branch is going to close

i am working for a private company having many branches across india. Now for cost cutting they are closing down the chennai branch . they have also given 20 days notice period. my question is will they give any compensation. i.e will they pay 2 months salary ? is there any labour law when company closing on their own should give compensation to employees. pls mention the labour law number.



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 3 Replies

Sudhir Kumar, Advocate (Advocate)     24 July 2014

meet nearest available labour law lawyer.

 

be clear that you cannot force employer to keep branch open despite losses or despite having lost the purpose.

wilfred (scm)     31 July 2014

i have attached the offer letter and terms and conditons


Attached File : 109160139 eyantra offer letter.pdf downloaded: 50 times

Kumar Doab (FIN)     01 August 2014

This post is without any reference to any post/comment by any member/expert/visitor.

This is independent heartfelt opinion and you may relate it with facts of your matter and verify with your lawyer on your own.

You can access Lawyer's/Law firms par excellence at Chennai.

You can and you should access Employee's unions/Trade Unions in such matters.

There are various steps and compliance to be followed to close an establishment.

You may clarify to your Labor Consultant/Service Lawyer:

 

1. It is closure of the Branch or Division. Company has to register each office in each city as per enactments applicable to it.

Company has to submit application for closure too as per various enactments applicable to it.

 

2. Duration of your employment with the company i.e. 4M8D and that till period of 6M the notice period applicable is 15 days.

 

3.Your designation and nature of duties.

It shall help to determine whether you shall be covered by the def. of 'Employee' as in Tamilnadu Shops and Commercial Establishments Act, 'Workman' as in ID Act?

 

4. What is this establishment : Commercial, Industrial?

 

5. Does it have its Certified Standing Orders (CSO)?

If yes you should acquire a copy from appointing authority/MD/Head-HR that may be provided either free or against a nominal cost say Rs.10/

Or 

From Certifying Officer (CO) that may be DLC in O/o Labor Commissioner at location of Redg. Office of the company against a nominal cost of say Rs3/page.

 

Since the company is having many branches and may have more than 50/100 employees hence standing orders should apply until or unless it is exempted.......................and/or if not certified Model Standing Orders should apply. 

 

 

6. The company has submitted for closure of the branch/div. whatever it is to local Labor Office/Shops and Establishments directorate or not? Your union and your lawyer can also verify on their  own or guide you  further.

 

7. The notice served on you for 20 days by the company.

The language and contents of the notice should be carefully examined.

Has the company offered you alternative employment and affirmed to tender advance for Non Refundable relocation expenses.

 

 

You should demand that the company's appointing authority should confirm that all company's material has been supplied by you and nothing related to Company's information is left by company with you, NO invention/innovation of the company was shared with you/ is left with you, relieving formality is completed by you, and   Non Compete Clause  stands withdrawn since company has terminated the operation.

 


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