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Clive Sinclair (Service)     18 June 2016

Termination of manager citing business reasons

Dear Sir.
I am 52Yr Old Ex-Serviceman and an Engineer. I had been employed as a Full time employee for last 2.5 yrs with a Reputed 60 Yr old Pvt Company listed on NSE at Mumbai. 
A year back, Company sold the Business in which I was employed as a going concern and transfered all the junior employees to the buyer as per Business Transfer agreement (BTA). I was heading the Business and was not transfered but retained by existing company and was given a new role as Business Head for another division. Now this new division had some legacy projects and is now closed for new orders. So company has asked me to quit with 3 month notice period as per my employment terms.
 I am a General Manager. I tried to use the 3 month period for looking for a new job but couldn't find one - due to age.
I want to know :-
1. Can company terminate my services citing closure of business.
2. Why I am the only one who is being terminated while teh remaining Jr Managers and employees are not touched. CEO told me that as I am drawing a large salary, hence I should quit.
3. Am I entitled to severance pay or the 3 months notice period is enough
4. Do I have legal options in this case? If yes, what is best course?
5. As I had submitted by resignation under coercion, should I withdraw it and dare company to terminate me?
Please advice asap as only 2 weeks are remaining (30 Jun) for the 3 months notice period to get over.
 



Learning

 3 Replies

Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 )     18 June 2016

You can claim from  the management for damages for immediate relieving from the position.

Dr J C Vashista (Advocate)     18 June 2016

The company (employer) has already offered to pay 3 months notice period salary as per terms and conditions of your service, hence nothing more remained to move to court of law and contest.

 

Kumar Doab (FIN)     18 June 2016

You may explore the possibility of extention of notice period amicably and if there is amicable agreement then you can withdraw.

 

You have posted that:

 

---" Now this new division had some legacy projects and is now closed for new orders. So company has asked me to quit with 3 month notice period as per my employment terms.
 I am a General Manager."

 

Has the company posted for closure of div. in writing and circulated to all employees also?

What is closed for new orders?

Is it waiting till new orders are recieved?

 

The company has asked you to quit i.e resign? Has it asked in writing? Do you have any irrefutabel evidence of demand of resignation?

 

---"As I had submitted by resignation under coercion,"

 Do you have any irrefutabel evidence of coercion?

Have you mentioned the reason in notice of resignation?

 

The service rules and regulations/service conditions, certified standing orders applicable to you are to be examined, for all queries that you have posted.

 

Approach a very able counsel/law firm specializing in such/service matters.

 

Generically speaking: the notice of resignation can be withdrawn before expiry of notice period/acceptance.

 

 

 


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