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lay offs by companies


CS Sneha p

2015-08-27

 

I have a query regarig lay of done by compnies.

 

There is company which informed its employess that since one of its department is not making business, it has decided to lay off / remove few employees. Now they are asking the employees to submit their resignation , or else they will issue a termination letter. They also said that company will pay them for next two months. What if the company doesnt pay? And it will look as the employee resigned so the employee cant even fight for it. Is there anythin in labor law for this kind of situation? is company correct on its part?

Rahul Rai

2015-08-27

Lay offs are reality. It is better to lay off a part of employees than keeling the entire company. Normally the offer letter and employement contract lays down the conditions with respect to lay offs.

As an employee is free to leave company with a certain notice period, so is the company. Company must be having a notice period policy of 2 months and so offering 2 months salary.

If company does not pay the 2 months salary which was part of agreement, employees can knock the doors of court.

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CS Sneha p

2015-08-27

Thanks for the reply Rahul..:-)

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