Compensation for termination of employees in private sector


I have been working as AGM Administration for 15 years with Canadian Engineering firm, I am regular employee. I have salary slips, PF contribution slip, appointment letter, salary revision letters, performance letters etc. As per the appointment letter 2month notice is either side. Company is planning to reduce employees from January. In such case If company terminates employees whether employee is entitled for any compensation or not. Two month notice salary is OK. Can I claim for 15 month salary as a compensation, is there any law. Pease advise. 

Answers (4)


275 votes

NO, AS PER THE APPOINTMENT LETTER YOU CANNOT CLAIM FURTHER 15 MONTH SALARY FOR ANY COMPENSATION WHEN IT IS CLEARLY MENTION IN THE APPOINTMENT LETTER THAT 2 MONTH NOTICE FROM THE EITHER SIDE WHEN COMPANY ALREADY FULFIL AS PER THE CONTRACT.


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193 votes

If there is a notice period of 2 months then for sure you will get compensation for those two months.
Over to this if you have a good hold with the higher officials of the company and you are in the capacity to negotiate by way of position and situation you hold in the company then you can ask for severance sum. This is absolutely legal but not mandatory as per law. So your position will help you to get this sum and not compulsion by way of law.

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282 votes

THEY SHOULD GIVE SOME REASON FOR TERMINATION OTHERWISE IT WILLBE TERMED AS ILLEGAL TERMINATION. IF THE COMPANY IS SUFFERING FROM THE LOSSES OR WORK IS REDUCED OR OTHERWISE THEY SHOULD BE SPECIFIC FOR TERMINATING. ENSURE THAT IT BONUS , GRATUITY LEAVES ENCASHMENT ETC OR PAID BY THEM TO THE EMPLOYEES OR ELSE U CAN DIRECTLY APPROACH THE LABOUR COMMISSIONER OFFICE FOR GRATUITY .... OR ELSE FILE CASE IN THE COURT.

96 votes

Hi
I understand,AGM stands for Assistant General Manager.
If that is so,you are entitled for compensation to the extent as mentioned in the letter of appointment only i.e two months notice pay only.
An employee is entitled for "retrenchment compensation"only if he is employed to do a kind of work that entitles him to be categorized as a "Workman" as defined under the Industrial Disputes Act 1947. Managers are not covered under the Workman category and therefore not entitled to the protection of law as provided under the above named Act and are entitled to only the remedies as contained in their service contract i.e Letter of Appointment and other conditions attached therewith.

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