Could any one suggest on the following:
Our company has to terminate an employee holding the postion of the vice president . He is with the company for the past 5 years. He has refused to resign. The company would have to terminate him because the process/operation under his control has closed down due to take over of the company.
Legally what compensation would he be entiled to apart from gratuity ?? What procedure does one have to follow to terminate such an employee to ensure that the company does not fall into legal hassles.
I went through Industrial Dispute Act to check whether the case would fall under the definition of retrenchment for him to be entitled to retrenchment compensation. But here am not sure because the definition of workman under the industrial dispute Act excludes person holding managerial or administrative capacity
Thanks and regards
Amita
Our company has to terminate an employee holding the postion of the vice president . He is with the company for the past 5 years. He has refused to resign. The company would have to terminate him because the process/operation under his control has closed down due to take over of the company.
Legally what compensation would he be entiled to apart from gratuity ?? What procedure does one have to follow to terminate such an employee to ensure that the company does not fall into legal hassles.
I went through Industrial Dispute Act to check whether the case would fall under the definition of retrenchment for him to be entitled to retrenchment compensation. But here am not sure because the definition of workman under the industrial dispute Act excludes person holding managerial or administrative capacity
Thanks and regards
Amita
Any employer has a full right to terminate any employee despite of the position he holds. As per ur company policy u have to only pay him the notice pay. Since u said the operation under his control has already been closed down then there is no requirement of any transition too.
Legally he can not do anything. Since he has served 5 years he would be eligible for gratuity. So clear everything what he is entitled to.
From India, New Delhi
32Legally he can not do anything. Since he has served 5 years he would be eligible for gratuity. So clear everything what he is entitled to.
From India, New Delhi
Thanks for your reply...
Does any ACT prescribe that such employees would be eligilble for 3 months pay/notice...as per our companies policy he would be entiled only to 1 months pay...Is this contarary to law..
Thanks and regards
Amita
Does any ACT prescribe that such employees would be eligilble for 3 months pay/notice...as per our companies policy he would be entiled only to 1 months pay...Is this contarary to law..
Thanks and regards
Amita
Hi Amita,
It is better to have a legal advice on this based upon the terms and conditions of the employment. Hope it is clearly mentioned about the termination clause also in the employment letter. Please proceed further accordingly as per the employment letter.
Thanks
Pavan
From India, Hyderabad
It is better to have a legal advice on this based upon the terms and conditions of the employment. Hope it is clearly mentioned about the termination clause also in the employment letter. Please proceed further accordingly as per the employment letter.
Thanks
Pavan
From India, Hyderabad
Terms & Conditions are based only on the offer u made. If it is specified one month notice pay then well and good. Proceed by paying one month pay but incase in offer it is mentioned 3 months u have to pay for the whole three month.
From India, New Delhi
From India, New Delhi
Dear,
In addition to the pay against notice period from your side & Gratuity (For 5 completed years of service), also clear all his leaves (if any encashable leave).
You can terminate his service if it is mentioned in the AL with whatever notice period.
Regards,
Tasneem:)
From India, Mumbai
In addition to the pay against notice period from your side & Gratuity (For 5 completed years of service), also clear all his leaves (if any encashable leave).
You can terminate his service if it is mentioned in the AL with whatever notice period.
Regards,
Tasneem:)
From India, Mumbai
Again for bonus there is no defined rules. Some organizations pay one month salary has the bonus for the employee. Few pay two months of the basic wages to their employees... It is again how u define ur way of paying bonus.
Correct me if i am wrong
From India, New Delhi
Correct me if i am wrong
From India, New Delhi
Dear Amita, Are you having the acceptance of Apointment letter ? because in this case you can relieve him immediately by paying him for the notice period, mentioned in the appointment letter.
From India, Faridabad
From India, Faridabad
Hi,
In this case, since the Dept. is closed down and Company want to terminate the Vice President, the Vice President is to be compensated with following dues :
1) Balance Earned Leave
2) 3 months salary - normally such a senior post,the resignation/termination clause will be of 3 months notice period
3) Gratuity
4) Termination compensation minimum @ 15 days salary for each completed year of service.
If you pay above compensation, I don't think there will be any scope for the affected Individual for legal remedy.
Regards,
Vijay Gaonkar
From India, Pune
In this case, since the Dept. is closed down and Company want to terminate the Vice President, the Vice President is to be compensated with following dues :
1) Balance Earned Leave
2) 3 months salary - normally such a senior post,the resignation/termination clause will be of 3 months notice period
3) Gratuity
4) Termination compensation minimum @ 15 days salary for each completed year of service.
If you pay above compensation, I don't think there will be any scope for the affected Individual for legal remedy.
Regards,
Vijay Gaonkar
From India, Pune
Frend,You can terminate any person will genuine reason. He has to be paid terminal benefits along payment in lieu of notice as per the terms of appointment letter. To avoid paying the notice pay you can serve a letter intimating termination of his service after three months or so, but do not forget to get the acceptence / acknowledgement on the duplicate copy of it.Pay all his terminal benefits through cheque and get the acknowledgement and be VERY CAREFUL IN BUILDING RECORS OR DOCUMENTS.Regards,Shrivatsa.A.V
From India, Bangalore
From India, Bangalore
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