Dear all,
I have been with the company for 4 months now. Suddenly, they are informing me that I have been terminated due to the COVID-19 pandemic, citing the company's financial situation as the reason for this decision.
What compensation can I expect from them at most? Can I request a full salary for 3 months, or is there anything else I can ask for to help me overcome the current situation?
Please advise me on this matter.
From India, Chennai
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I have been with the company for 4 months now. Suddenly, they are informing me that I have been terminated due to the COVID-19 pandemic, citing the company's financial situation as the reason for this decision.
What compensation can I expect from them at most? Can I request a full salary for 3 months, or is there anything else I can ask for to help me overcome the current situation?
Please advise me on this matter.
From India, Chennai
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We have to be aware of what's going on in the country and world over. You are not going to be the only one rendered jobless via termination due to COVID-19. This doesn't mean you are singled out. Every business unit is suffering with no work and no revenue. Governments keep issuing press notes urging no pay cut and no loss of jobs, of course, without amending relevant provisions of various laws to handle such unprecedented economic breakdown. There are no clear-cut support systems in operation for struggling entities. No one is addressing the realities of no production, no sales, nil revenue; how is it going to be possible for entities to disburse idle wages? Big businesses may have certain resources, but what about MSMEs and those suffering cash losses?
I sympathize with you but have to confess, you won't get a clear-cut answer to your position. Let us wait and see what the future holds once the lockdown is totally lifted.
From India, Bangalore
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1271I sympathize with you but have to confess, you won't get a clear-cut answer to your position. Let us wait and see what the future holds once the lockdown is totally lifted.
From India, Bangalore
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I can think from the company's side that why we accepted 50% salary for the months of April and May, even June depending on the conditions we are ready to accept. Given the pandemic, if they terminate me due to financial crisis, I am not a highly paid employee, just a salary of 25k per month. Now, searching for a new job is not easy during this period. I am even ready to accept 60% of the salary until the company's position is settled.
They didn't mention anything about my performance or misconduct as the reason for my termination; they simply stated that it was due to the company's economic condition.
What should I do? Should I accept the termination or ask for compensation? Please suggest.
Thanks,
Senthil
From India, Chennai
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They didn't mention anything about my performance or misconduct as the reason for my termination; they simply stated that it was due to the company's economic condition.
What should I do? Should I accept the termination or ask for compensation? Please suggest.
Thanks,
Senthil
From India, Chennai
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Dear Senthil,
I'm sorry to hear that your company has planned to terminate your services during this pandemic. The Central Govt. has issued multiple advisories requesting employers to support their employees by not terminating them and continuing to pay salary/wages. However, employers have done their best to help the employees by paying the salary and retaining their services up to April. Given the unfavorable circumstances and the fact that employers have drained their cash flow, they have no choice but to either terminate services or retain them by implementing substantial wage/salary cuts at all levels.
That said, you have not specified your nature of employment to analyze whether you fall within the scope of 2(s) of the Industrial Disputes Act. If you fulfill the definition of 2(s) and have not completed 240 days of service (only completed 4 months), you cannot approach the labor court. However, you may be eligible for contractual termination notice or pay in lieu thereof in accordance with your appointment letter if such a clause exists.
In addition to the above, you can also prosecute the management for terminating your services during the existence of the MHA order.
Regards,
Satish GA
Advocate & Consultant
+91 9880573300
From India, Bangalore
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I'm sorry to hear that your company has planned to terminate your services during this pandemic. The Central Govt. has issued multiple advisories requesting employers to support their employees by not terminating them and continuing to pay salary/wages. However, employers have done their best to help the employees by paying the salary and retaining their services up to April. Given the unfavorable circumstances and the fact that employers have drained their cash flow, they have no choice but to either terminate services or retain them by implementing substantial wage/salary cuts at all levels.
That said, you have not specified your nature of employment to analyze whether you fall within the scope of 2(s) of the Industrial Disputes Act. If you fulfill the definition of 2(s) and have not completed 240 days of service (only completed 4 months), you cannot approach the labor court. However, you may be eligible for contractual termination notice or pay in lieu thereof in accordance with your appointment letter if such a clause exists.
In addition to the above, you can also prosecute the management for terminating your services during the existence of the MHA order.
Regards,
Satish GA
Advocate & Consultant
+91 9880573300
From India, Bangalore
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Dear Mr. Senthil,
You have not furnished valid details pertaining to your employment such as your designation, job responsibilities, salary drawn, establishment details, and the termination clause as per your appointment letter. Were you a probationer? Please provide all details for suggestions by members.
From India, New Delhi
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You have not furnished valid details pertaining to your employment such as your designation, job responsibilities, salary drawn, establishment details, and the termination clause as per your appointment letter. Were you a probationer? Please provide all details for suggestions by members.
From India, New Delhi
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Yes, it is impossible to suggest any suggestion. The fact of the matter is that, declarations apart, the so-called instructions/orders of the MHA are mere advisories; it is a moot question whether they have the force of law to compel the employer to pay for the period of no work and no gain. Moreover, neither the Sovereign nor the Law can dictate that the impossible be done.
From India, Kochi
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From India, Kochi
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Hi,
Sir, I received the termination letter from my company on 16/05/2020. The company's HR mentioned in the letter that the employment contract is terminated with immediate effect due to non-performance with a notice period of 15 days. However, as per the appointment letter, I am confirmed and shall be liable for 2 months' salary from the day the notice was received. I replied to HR against the termination letter because I did not receive any performance notice from the company. Up to today, I have not received the salary for the month of April. Therefore, I would like to know if the company's decision to terminate me is appropriate during the COVID-19 period. What is the next course of action? How much compensation will I receive from the company?
Thank you.
From India, Mumbai
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Sir, I received the termination letter from my company on 16/05/2020. The company's HR mentioned in the letter that the employment contract is terminated with immediate effect due to non-performance with a notice period of 15 days. However, as per the appointment letter, I am confirmed and shall be liable for 2 months' salary from the day the notice was received. I replied to HR against the termination letter because I did not receive any performance notice from the company. Up to today, I have not received the salary for the month of April. Therefore, I would like to know if the company's decision to terminate me is appropriate during the COVID-19 period. What is the next course of action? How much compensation will I receive from the company?
Thank you.
From India, Mumbai
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Employee Termination during covid 19.pdf
Termination letter.doc