Pink Slip - Some details required

[fire]

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Hi,
Could any give legal standpoint on what a company should do for
1) Gratuity
2) Variable pay
when it sacks its employees.Assume For the gratutity the employee hasnt completed 5 years and for variable pay the employee hasnt completed the full year.(And of course he not leaving on his own.His amount is getting lost because of management decision.)

Also when employer gives termination as 'volantary retirement' are we supposed to accept it (Because no need to explain in other companies) or should we play by rule?

Thanks,
Fire

 

[pannvalan]

1. 'Pink slip' usually refers to communication of termination of one's services or
deletion of one's name from the company's payrolls.
2. Generally, a person who has not completed 10 years of service in a company (or
an institution) is not eligible to receive gratuity as per the 'Gratuity Act'.
3. 'Variable pay' is usually linked to one's performance that can be expressed in
quantitative terms. Strictly speaking, it is also part of the remuneration, one is
entitled to receive, if one can prove that the actual performance was to the mutually
agreed level and reduced to writing. Here, the length of one's experience doesn't matter.
4. Whether it is 'lay-off' (en masse retrenchment) or a single case of dismissal, they
can not be portrayed as VRS. Again, VRS cannot be forced on anyone, as the
name itself suggests it is voluntary. On the other hand, whether to accept one's
offer of VRS or not is the prerogative of the company, subject to principles of
natural justice and transparency.

For 'lay-off', compensation has to be given as per the Industrial Disputes Act. For
dismissal, it depends on the facts of the case. Both can be challenged in labour
tribunals or courts of law.

Dismissal is sometimes described as 'resignation', 'voluntary cessation of service/employment', 'permanent incapacitation to continue in one's job' etc. to avoid legal disputes and escape from monetary liability. It has to be only fought out, without any prevarication or ambiguity.

 

[fire]

do IT companies come under ID Act?

Hi,
Do IT companies come under Industrial dispute Act?
Assume one employee works for n-1 years for a company and given pink slip.Should the management consider about his gratuity loss or not.(Given its forced on him)
What is the minimum wage Industrial dispute act sets for permanent employees? Can the offer letter agreement override that law?

Many companies dont give the variable pay , either there is a layoff or a voluntary resignation in the middle of the assessment year.What the law says about it?

Thanks,
Fire

 

[pannvalan]

Please be more specific in asking your question.

1. To my knowledge Factories Act, 1948 does not apply to employees in Software
companies. But, provisions of I.D. Act, 1947 can be invoked, subject to the
condition that the employee in question is not a supervisor or manager.

2. Again, Minimum Wages Act does not apply to Software Industry.

3. Payment of variable pay is monthly or yearly?

4. Why this man/woman was singled out in termination by the company? More facts
are needed. No one needs to accept termination notice, without a written
protest.

5. It appears from what you have written, only legal remedies are possible.