Working in an MNC company 'A' for 12yrs 3 months at the Mid-Senior level. The company acquired 'B' and hence both are merging. Been told no positions available at new merged company 'C'. All other employees absorbed and only I have been asked to resign. Have been a solid performer and have a 3 months notice period. Future opportunities limited due to age (45), gender (F), and being in a niche industry and covid period. Bonus is given CY wise and has vested shares (2021,2022, 2023) listed on the London Stock Exchange. How much severance/retrenchment can I negotiate, considering being the sole earner in the family?
From India, Noida
From India, Noida
Madam,
Considering your middle-managerial position, you will have to work out your separation package on the basis of the relevant terms of your contract of employment only. If you resign on your own, you will get only statutory gratuity. If the company resorts to lay you off immediately on the ground of surplusage, you will get only the notice salary of 3 months as per the contract of employment in addition to gratuity.
Therefore, go in for a negotiated settlement. Emphasize the dire need of your continuation in view of yourself being the bread winner of the family and the difficulty of finding alternative employment of similar status due to your age factor. If your retention is not actually possible due to genuine reasons, ask for a higher compensation package like retrenchment compensation for the 12+ years of your service. What I have suggested above is minimum only. Rest depends on factors like your present salary, the probable time required for finding a suitable job in the same locality or elsewhere, the cost of relocation etc.
From India, Salem
6018Considering your middle-managerial position, you will have to work out your separation package on the basis of the relevant terms of your contract of employment only. If you resign on your own, you will get only statutory gratuity. If the company resorts to lay you off immediately on the ground of surplusage, you will get only the notice salary of 3 months as per the contract of employment in addition to gratuity.
Therefore, go in for a negotiated settlement. Emphasize the dire need of your continuation in view of yourself being the bread winner of the family and the difficulty of finding alternative employment of similar status due to your age factor. If your retention is not actually possible due to genuine reasons, ask for a higher compensation package like retrenchment compensation for the 12+ years of your service. What I have suggested above is minimum only. Rest depends on factors like your present salary, the probable time required for finding a suitable job in the same locality or elsewhere, the cost of relocation etc.
From India, Salem
Much would depend on the severance package as per policy of the company. Being an MNC they would have some laid down document for this purpose. Though technically you are an employee of company C, yet your entitlements in company A have to be protected. You need to ascertain what A was offering to comparable employees. But when you are negotiating, ask for an amount which is the sum of gratuity (Basic Pay + DA/26 X no. of completed years of service) + retrenchment compensation (i.e. 15 days salary for every completed year of service + notice pay as pointed out by learned Shri Umakanthan Sir. In addition ask for payment of leave salary and extra compensation for searching for an alternate job.
From India, Mumbai
From India, Mumbai
Thankyou Umakanthan Sir and KK,
The reason given is that no position is available. However, for this full CY 2020 I was tasked to work and deliver on new strategies and business development initiatives. On the same I delivered on projects- multiple Strategy documents, New Products Business plans which have been accepted by their new company board and based on that even new CAPEX and business segments have been created.
So basically they utilised my knowledge of the industry by having me work on new plans. And now that work is completed they have conveniently said no role for me. In a clear sense, I feel taken advantaged of and cheated of my dues
From India, Noida
The reason given is that no position is available. However, for this full CY 2020 I was tasked to work and deliver on new strategies and business development initiatives. On the same I delivered on projects- multiple Strategy documents, New Products Business plans which have been accepted by their new company board and based on that even new CAPEX and business segments have been created.
So basically they utilised my knowledge of the industry by having me work on new plans. And now that work is completed they have conveniently said no role for me. In a clear sense, I feel taken advantaged of and cheated of my dues
From India, Noida
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