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Role Redundant- people optimization
08-Jun-2026 (In Labour & Service Law)
I have been working for 28 year in the company in a senior managerial position. HR told me 2 days back that there is no performance issue but the role has been made redunadant and I have to resign. I asked for severance pay and HR said that there is no company policy on this. My question is what is my right as per new labour code on severance pay since it is company who is doing people optimization. Can I say I don't resign and can they terminate me?
Do not submit your resignation if the role has been made redundant by the company. Ask the employer to issue a formal termination/redundancy letter instead. A resignation may weaken your claim for severance or other terminal benefits.
Whether you are entitled to retrenchment compensation/severance depends on your employment status, designation, and the applicable labour laws. As a senior managerial employee, your rights may largely flow from your employment contract, notice period provisions, gratuity, leave encashment, and company policies.
Preserve all HR communications, respond in writing that you are willing to continue employment, and seek details of the proposed separation package before taking any decision. Given your 28 years of service, you may also negotiate a fair severance settlement.
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Adv. Sumegh Garg
Gurgaon / Gurugram | 100+ Answers
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Adv. Ajay Godara
Hansi | 25+ Answers
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