File The Complaint

Hi seniors,

This is a strange incident that happened in our company. Some of us were called to the head office for a meeting, and when we reached there, we were told to submit our papers, stating that the role was being eliminated due to an organizational restructuring. Additionally, the company was not making enough profits. They mentioned that we would all be absorbed into other departments once we handed in our resignation letters. They convinced us that everyone had to submit the letter before leaving the room that day. We were frightened and disappointed, so we submitted the papers, stating that we were resigning due to personal reasons. Our last date was set for that particular month. They promised to provide a new departmental change and three months' salary. However, now when we try to contact the HR and other bosses, they just ignore our calls, and we have not received any of our entitlements.

Please advise on what can be done. We are all in real despair and feel stuck as we don't know how to move forward. Can we file a complaint on the labor website to the honorable minister?

Regards

Hello badkones,

It goes without saying that your company, in a best-case scenario, took advantage of the current company's situation to ease out the employees [company wasn't making enough profits] or in a worst-case scenario, outright lied to its employees [for whatever reasons]. In the former situation, they could have told the truth--if the profits were indeed bad. Such situations are usually common in the IT sector, mainly during a recession--called layoffs.

Before you move to any next step, suggest doing your groundwork well. Since you were informed that there weren't any profits [which is different from 'the company is doing badly'], check out how much of this premise is true. Also, verify whatever has been informed at the meeting--basically check the veracity of what's been said.

Only then can you plan and decide what should be done next and to what extent you guys can go.

All the best.

Regards,
TS

Dear Ts,

Thanks for the reply. It's not an IT company; it's a financial services company (just one small company within a giant group).

Something taken from its website: Headquartered in Chennai, the Rs. 22314 crores (USD 4.4 billion as of March 31, 2012) Group is one of India's leading business conglomerates. Market leaders in diverse areas of business including Engineering, Abrasives, Finance, General Insurance, Cycles, Sugar, Farm Inputs, Fertilizers, Plantations, Bio-products, and Nutraceuticals. Its 28 businesses have manufacturing facilities spread across 13 states in India. The organization fosters an environment of professionalism and has a workforce of over 32,000 employees.

I am not against the company as it's a wonderful company with a clear vision and values. However, only a few individuals who have joined as the head of this company are making these decisions. I am confident that the board members are not aware of all these issues. The so-called head who has joined is trying to protect his image by showing profits through layoffs, which is a temporary and detrimental strategy for the company in the long run. He claims the model was flawed, leading to layoffs at all levels to boost profits.

Sir, is there any recourse in the labor court or any other avenues where employees can seek justice? All of them are permanent employees who were crucial in setting up the company's foundation. Additionally, most of them have been with the company for over a year (the company was formed just a year ago with a rapid scaling model). Please help as we have nowhere else to turn. This situation affects the livelihoods of hundreds of people's families.

Thank you.

It amounts to retrenchment as per the provisions of the Industrial Dispute Act 1947 if you are in the category of workmen. However, if you have submitted your resignation on your own, it would be difficult to prove the same. If you have proof that you have been called to the head office and asked to resign, then you can file a claim for the same. It still amounts to a forceful resignation if you could provide proof of being asked to do so.

Please speak to your HR department. If they are not available, then send a demand notice for the same.

Regards

Dear Essykkr,

Thank you for the reply. I and all my fellow mates can attest to it. Can this be taken as proof against the company? Also, can I write an email to the Honorable Labor Minister to bring this to his attention? Will it help resolve the issue? Additionally, can I write a letter to the Group Chairman and MD regarding this incident? Will it impact my relieving letter?

Thank you.

Hello badkones,

My suggestion would be this—however one may hate to follow it.

Be realistic—what's your priority now? To get another job ASAP or to spend your valuable time & money trying to fight it out? I am sure it would be a tough choice—but I would suggest you think from the head rather than the heart [being emotional] in such situations.

Whatever has been committed [3 months salary, etc.] would have been done orally—not in writing—I presume. So even if you go the legal way, the company can always deny having committed. Moreover, you mention that the company is a large one—meaning they have the means to hire costly advocates. As employees, would you be able to handle the expenses involved [given that cases go on for years in India]?

While one can empathize with the situation, we also need to understand that this is one of the downside factors of globalization. In general, however much we do BCs about the company BEFORE joining, this could always be an issue with IT & Financial sector companies or more precisely Services Companies [in relative terms i.e. w.r.t. manufacturing companies]—given that there would quite often be a lot of imponderables in these domains, over which individual companies may not have a lot of control. One of the primary reasons for the relatively high salaries in these sectors is this aspect.

All the best.

Rgds,

TS

As a layman, I am rather surprised at the naivety of some people in submitting their resignation without thinking of the consequences. If the company dismisses employees, they must pay as per the employment contract. On the other hand, if individuals resign, they are obligated to serve their notice period and pay compensation.

As rightly advised by TS, try to secure a job and exit without having to pay compensation if possible.

Hi,

All commitments made were oral and had no value. Resignations have been submitted for personal reasons and are voluntary in nature. Hence, please pin no hope on the contest and look forward to another job. Let the current situation prove to be a good experience for the future.

Regards, S.K. Johri

Dear badkones:

My personal opinion is also to ready yourself to get another job. Then try to get all the persons signed that day, ready an application (signed by all) for consideration (payment/job in another project) to the board of directors. Wait for 07 days and just forget all these things. And please attend interviews without telling them about past events if interviewers ask the cause for your leaving, because this sort of incident creates confusion at interview time.

BR
mashuk

Hello badkones,

You should "move on" and think of this as an opportunity to do something different, where your interest lies or something that you would love to do. Maybe it's a hobby that can take a different shape, enhance your competencies, or add to your professional qualifications. The more you dwell on the past, the more it will haunt you. Just forget about it and focus on what's next and what you are doing about it today. Take your time, create a plan, and go for it!

Cheers and good luck!