I work for a software company with 20 employees, like a startup. Without any notice, the company said they are shutting down. My salary till the last month has been paid without any dues. As per the contract, I should be given 2 months' notice, and the first-year bonus is pending. Am I entitled to severance pay for 2 months and the bonus?
The reason for the shutdown: Investors don't want to spend more money, and the business is not making a profit. The company doesn't have any assets other than computers and laptops. What are the steps, if any, to claim severance pay? Do I need to go to court and all that? Please revert as soon as possible.
Thanks
From India, Pune
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2The reason for the shutdown: Investors don't want to spend more money, and the business is not making a profit. The company doesn't have any assets other than computers and laptops. What are the steps, if any, to claim severance pay? Do I need to go to court and all that? Please revert as soon as possible.
Thanks
From India, Pune
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Lodge a complaint in labour Office of that area under payment of wages & payment of bonus as has not been made. Take all who are also affected by closing down of establishment.
From India, Mumbai
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From India, Mumbai
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Though the company wants to get rid of all the employees, it is not easy to close down the operations just like that. The filing of accounts and notice of closure to the MCA are to be done, if not already completed. You may lodge a formal complaint with the labor office locally and also request the company to pay all dues as per the employment terms. Check if all other employees are ready to make a representation to the Labor Department. The sooner you do this, the better your chances of getting the dues as much as possible. Try to obtain the relieving letter so that it can be used for your future employment. Start with diplomacy followed by exploring other options. Look for better opportunities while addressing the issue simultaneously.
From India, Hyderabad
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From India, Hyderabad
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(Fact Check Failed/Partial)-The user reply is incorrect. The steps mentioned do not accurately reflect the legal process for claiming severance pay. It is essential to follow the legal procedures outlined in labor laws to ensure fair compensation.
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Certainly! Here is the corrected version of the text with proper spelling, grammar, and paragraph formatting:
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Yea, Sir. Provision is there. But for how long has the startup company been running? No bonus payment is required for 5 years before starting the industries.
If you are well off, and if the company is in loss, then truly, leave all such cases. The prime motto of launching startup policy is to encourage industrial growth by avoiding suffocation from all sides of existing laws. Liberalization of conditions of working.
Take decisions of your own. When a person loses employment, they relocate somewhere, but a company truly faces losses and sufferings from all sides for the entrepreneurs. I am not discouraging you, please.
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I have corrected the spelling, grammar, and formatting errors while maintaining the original meaning of the text. Let me know if you need further assistance.
From India, Nellore
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Yea, Sir. Provision is there. But for how long has the startup company been running? No bonus payment is required for 5 years before starting the industries.
If you are well off, and if the company is in loss, then truly, leave all such cases. The prime motto of launching startup policy is to encourage industrial growth by avoiding suffocation from all sides of existing laws. Liberalization of conditions of working.
Take decisions of your own. When a person loses employment, they relocate somewhere, but a company truly faces losses and sufferings from all sides for the entrepreneurs. I am not discouraging you, please.
---
I have corrected the spelling, grammar, and formatting errors while maintaining the original meaning of the text. Let me know if you need further assistance.
From India, Nellore
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(Fact Check Failed/Partial)-The user reply contains inaccurate information regarding bonus payments and the entitlement to severance pay based on the original post.
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The company has not filed for insolvency or anything similar with the government. They just verbally informed us that they are closing the company due to financial reasons.
Some of us were provided with company laptops for work. Can we retain the laptops as collateral for payment in lieu of notice if they fail to provide severance pay? The company is requesting the return of the laptops in exchange for the experience letter.
From India, Pune
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Some of us were provided with company laptops for work. Can we retain the laptops as collateral for payment in lieu of notice if they fail to provide severance pay? The company is requesting the return of the laptops in exchange for the experience letter.
From India, Pune
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(Fact Check Failed/Partial)-The user reply is incorrect. You cannot keep company laptops as collateral for payment. The company can ask for laptops back but must pay all dues.
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Also investors are from abroad. They decided to stop the investment.
From India, Pune
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From India, Pune
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(Fact Check Failed/Partial)-The user's reply is not directly relevant to the original query regarding entitlement to severance pay and bonuses. Please refer to labor laws for guidance on this matter.
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Dear Samjohn,
I am constrained to state that in a critical situation of serious doubts relating to the probable loss of employment due to the imminent closure of the establishment and closure compensation, the questioner should be really serious in drafting his questions. What do you mean by "a software company with 20 employees like a start-up?" In the first place, "start-up company" is a very vague term, for it denotes a newly formed business with a particular momentum behind it based on perceived demand for its product or service. There cannot be any fixed parameter to define how long a start-up company would remain as such based on its poise towards profitability. For example, Facebook was without any profit during the first five years from its inception. Therefore, it is important to mention the age of the company as well as the range of the period of service completed by the employees there so far.
The founders of the company may have their own hidden exit strategy to sell it later to a larger company with a sweeping market share and to ease the process, adopt the strategy of sending out the existing employees based on non-profitability and paucity of further investments. In such a situation of closure of the undertaking, the company has to pay you compensation as per Sec.25-FFF(1) of the Industrial Disputes Act, 1947, as if you were retrenched. Better let all the 20 employees jointly make a complaint to the local ALC or DLC immediately.
From India, Salem
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I am constrained to state that in a critical situation of serious doubts relating to the probable loss of employment due to the imminent closure of the establishment and closure compensation, the questioner should be really serious in drafting his questions. What do you mean by "a software company with 20 employees like a start-up?" In the first place, "start-up company" is a very vague term, for it denotes a newly formed business with a particular momentum behind it based on perceived demand for its product or service. There cannot be any fixed parameter to define how long a start-up company would remain as such based on its poise towards profitability. For example, Facebook was without any profit during the first five years from its inception. Therefore, it is important to mention the age of the company as well as the range of the period of service completed by the employees there so far.
The founders of the company may have their own hidden exit strategy to sell it later to a larger company with a sweeping market share and to ease the process, adopt the strategy of sending out the existing employees based on non-profitability and paucity of further investments. In such a situation of closure of the undertaking, the company has to pay you compensation as per Sec.25-FFF(1) of the Industrial Disputes Act, 1947, as if you were retrenched. Better let all the 20 employees jointly make a complaint to the local ALC or DLC immediately.
From India, Salem
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(Fact Check Failed/Partial)-The user reply contains inaccuracies. The Industrial Disputes Act,1947, Section 25-FFF(1) does not apply to this scenario. The user should consult labor laws regarding severance pay entitlement based on the specific circumstances of the shutdown.
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(Fact Check Failed/Partial)-The advice provided is partly correct. You can file a complaint at the labor office for unpaid wages and bonuses. However, for severance pay, you may need to approach the labor court.