shift, given too few hours if part time, demoted or relegated to a menial task, or assigned to work in uncomfortable conditions. Other forms of manipulation may be used, such as being unfairly hostile to the employee, and punishing him or her for things that are deliberately overlooked with other employees. Such tactics may amount to constructive dismissal, which is illegal in some jurisdictions Severance Pay:Upon termination of employment of any employee, the employer is required to clear all dues, which are payable to the employee at the time of the termination. Some of these payments are as follows: Notice pay, where notice of termination has not been given; Salary for the days worked, but not paid for, during the month where the employee has been terminated;
Alternate Methods for Termination of Employment Contract P a g e | 4Payment of gratuity for employees who have completed at least 5 years of service, in terms of the Payment of Gratuity Act 1972. This act is applicable to establishments which have 10 or more employees. The gratuity is calculated at 15 days’ salary for every completed year of service; Leave encashment, for the leaves accrued, but not used by the exiting employee; Statutory bonus, if the employee is eligible for the same. Employees who are earning up to Rs. 10,000 per month and who has worked in an establishment for not less than 30 working days in a financial year will be entitled to statutory bonus under the Payment of Bonus Act, 1965; Retrenchment compensation, if the employee is a workman, and his services have been retrenched; Such other dues that may have been contractually agreed between the employer and the employee, or is payable under the employer’s company policies;Assist the employee in making applications to the appropriate authority, for withdrawal of the provident fund dues, accumulated to the credit of the exiting employee. 2.CASE BRIEF TCS planned to fire one percent of its total employees for non-performance or failure to specialise in a particular domain required for its various projects. The total involuntary attrition (terminating service) for FY15 was around one percent, it was 0.8 percent (2,574 employees) for the first nine months, the company tweeted on 13 January. As the largest employer in the IT industry, TCS currently has a whopping 3,13,757 employees, including over 100,000 women. Fresher’saccount for 60 percent and laterals 40 percent.
Alternate Methods for Termination of Employment Contract P a g e | 5There had been considerable noise about alleged mass layoffs by TCS. Social networks were abuzz with unsubstantiated news that the company plans to send home about 25, 000 “non-performers” by the end of February 2015. Although TCS had maintained that there is nothing extraordinary and its only part of “workforce optimisation”, many peopleon social networking and media forums have alleged unfair treatment and a surreptitious plan to downsize the workforce.
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- Prof Natwar Lal