Denial of Notice Period after issuing PIP to employees - What are the right of an employee in this case?

Hi there, I work for a public limited firm in Gurgaon. Due to the Covid-19 lockdown, it's a tough time for my company. My company has started laying off employees and they are using the Performance Improvement Plan (PIP) as a tool. They are giving a one-month PIP and setting unrealistic targets for employees to achieve. All the employees who failed the PIP were denied a 2-month notice period or salary in lieu of notice. The PIP mail communication did not specify that the last date of the PIP would be the last date of employment in case of failure, and the PIP period would be considered as the notice period.

What are the rights of an employee in this case, and can this be challenged in court? Since the Appointment letter didn't have a PIP clause, however, the Termination clause states that either party is liable to give a notice period of 2 months or salary of 2 months in the case of resignation/termination. The company had also started deferring 35% of the gross salary since April '20. Can a company deny to pay deferred salary post resignation/termination?

The company is bound by the rules and regulations for termination or resignation. If two months' notice is to be given by the employee, the employer also has to give a similar notice period or salary in lieu. PIP is a tool for performance improvement and not a tool to remove employees. Put up a clear written representation to the company under proper acknowledgment. In case they fail to redress problems, one can take it up legally. Other employees can join hands and share legal expenses.

Thanks for your suggestion. Can we claim our deferred salary, or will we forfeit it after resignation or termination?

Dear Abhishek-Mishra1,

While concurring with Nathrao, I suggest that whatever you want to do, do it collectively. This is, I suppose, not your individual issue. The answer to your various queries depends on various factors such as your cadre, the actual nature of your work, whether you fall under the ID Act, and which chapter of the ID Act applies to you - VA or VB, etc.

It seems to me that you don't fall under the ID Act. You need to make your case properly to fight legally. You need to consult a good advocate.