I am working for a IT services company in Karnataka. Company is planning to reduce workforce comprising of some senior employees in order to cut costs. I would like to know what is the retrenchment or termination dues payable normally under the applicable legislation such as the Shops and Commercial Establishments Act of Karnataka or the ID Act. Some of these employees have served over 10 years in the company. Is the offer letter to be considered the employment contract in this case? Can the employees be terminated by paying the notice period salary which is two months’ pay?....or should the employer be liable to pay compensation as indicated in the SE Act (15 days or 1 month of salary for every completed year of service)?
Second part of the same situation is who is considered a manager …as some of these employees designation has been very recently tagged as “manager” – according to one advocate’s document posted in this site it reads as below:
“in order to determine whether a person is in a position of management or not, the factors to be considered are whether the, person had power to operate on the Bank account, whether he could make payments to third parties and enter into agreements with them on behalf of the employer, whether he was entitled to represent the employer to the world at large in regard to the dealings of the employer with strangers, whether he had authority to supervise the work of the clerks employed in the establishment, whether he had control and charge of the correspondence, whether he could make commitments on behalf of the employer, whether he could grant leave to the members of the staff and hold disciplinary proceedings against them and whether he had the power to appoint members of the staff or punish them. The salary drawn by an employee may have no significance and may not be material though it may be treated theoretically as a relevant factor"
Do all of the factors apply together to considered an employee as a “manager” or is an employee considered a manager if any one or few factors even apply?
Replies and opinions are gratefully appreciated!
